Semiconductor revenue is on the upswing, and semiconductor exchange traded funds could use the boost. But analysts are really wondering if this trend will sustain for the rest of 2010 into the next year.
The Semiconductor Industry Association’s data shows that semiconductor revenue in August hit a record of $25.7 billion. That’s a 32.6% jump from a year ago. Carlos Guillen reports that weak PC demand won’t derail the industry’s full-year growth. That’s because demand for semiconductors has gone beyond computers.
It’s a nice turnaround for an industry that was dragged down along with the broader markets this summer, says Larry D. Spears for Money and Markets. Future expectations are being lowered slightly, because while chip sales continue, they’re slowing down.
Lee Gomes for Forbes reports that a new material may take the semiconductor industry by storm: graphene. Silicon chips are running up against limits as the demand for ever-faster semiconductors grows. Graphene, however, is just a single atom thick and conducts electricity extremely well.
- iShares S&P North America Technology-Semiconductors (IGW)
- SPDR S&P Semiconductor (NYSEARCA:XSD)
- PowerShares Dynamic Semiconductors (NYSEARCA:PSI)
To go extra long or short on semiconductors, also consider:
Tisha Guerrero contributed to this article.