While many analysts expect the ongoing chip shortage to continue through the following year, the surging demand for advanced and efficient chips and rising investments to ramp up production should drive the semiconductor industry’s growth. Moreover, the U.S. Senate voted in favor of the $280 billion CHIPS-Plus package yesterday to bolster domestic semiconductor manufacturing, which should bode well for the industry.
Investors’ interest in this space is evident from the SPDR S&P Semiconductor ETF’s (XSD) 3.4% gains over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) 0.2% returns. According to Deloitte, the global semiconductor chip industry is expected to reach about $600 billion in 2022. So, Qualcomm Incorporated (QCOM) and Advanced Micro Devices, Inc. (AMD) should stay afloat amid the volatile market conditions.
