SOXX: Trump Once Again As A Growth Catalyst

Summary

• The semiconductor sector is the main driver of the information technology segment of the S&P 500, and SOXX appears to represent it very well.
• Key catalysts include the U.S.–Saudi deal and easing U.S.–China trade tensions, which reduce sector risks and support bullish growth projections.
• So I believe this justifies the sector's early-year growth expectations, before the "Liberation Day."
• I therefore believe that SOXX is fairly valued, with a PEG ratio near 1, reflecting credible EPS growth expectations.
• It’s a sector with a beta greater than 1, and the catalysts are commercial in nature but rooted in political decisions, this could make the thesis unstable when viewed.

Mykola Pokhodzhay

Semiconductors are central to future technological development.

Now, you might think: "that’s a thesis even a grade-schooler could come up with." Fair enough, it’s certainly not one of those insights that feels groundbreaking. But, as a reader once pointed out in a comment under

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