Strong demand for consumer electronics and an increase in prices due to tight supply have helped chipmakers perform well over the past year, and their momentum is set to remain strong in the coming months. Analysts expect semiconductor sales to cross $600 billion for the first time this year. Semiconductor companies are investing significantly in capacity expansion and product-mix improvement to meet the rising demand.
However, the stock market had a rough start to this year, with the S&P 500 and the Nasdaq Composite in January posting their worst month since the onset of the pandemic on investors’ concerns over expected interest rate hikes.
