Vincent Besnault
Introduction
Last week I analyzed the iShares Expanded Tech-Software Sector ETF (IGV). I compared it with the iShares Semiconductor ETF (NASDAQ:SOXX) and found that software was far more expensive and had lower earnings growth
SOXX: Not Time To Cash In
Summary
- The semiconductor sector is poised for a cyclical recovery, boosted by AI development with EPS growth forecasted at 32% for 2025.
- Despite a 12-month gain of 30%, the sector remains attractively valued with a 25% upside potential for 2025, supported by consensus price targets.
- The sector's high EPS growth does not come at an expensive price, with a 23x P/E target under a 1.0x PEG ratio, indicating room for expansion.
Experience is difficult to learn. After 30 plus years of critically analyzing the nuts and bolts of businesses as diverse as airlines, oil, retail, mining to fintech and ecommerce plus the macro, monetary and political drivers. I continue to immensely enjoy learning and applying my experience to unravel, comprehend and benefit from new ideas, technology, innovation and business models. In addition, living through multiple crises, tequila, Asia, dotcom, 9/11, the great recession and the Covid19 pandemia, plus a stint at entrepreneurialism (Export, Factoring and Printing) provides for an extraordinary base of experience to be applied across multiple disciplines.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.