$iShares Semiconductor ETF(SOXX)$hi tiger brothers and sisters , will you buy the dip in semiconductor stocks now??
Let us take a look at some of the top holdings in SOXX. Here's the top 5, which comprises 36.4% of total portfolio in SOXX.
1. $Broadcom(AVGO)$(8.99%)
2. $Intel(INTC)$(8.06%)
3. $NVIDIA Corp(NVDA)$(7.99%)
4. Texas Instruments (6.49%)
5. AMD (5.75%)
It is interesting to know that the revenues of these top 5 companies have been growing steadily, despite numerous reports stating that the semiconductor sector is in a decline. U can clearly see that there's no slowing down if you look at the TSM consolidated monthly revenue. Excluding the month of Feb due to the Chinese New Year break, the net monthly revenue of TSM has been increasing each month.
The SOXX share price is currently at its 52-week low. According to Zacks research, SOXX currently has a ranking of #1 (strong buy) but also high risk.
I rmb during in year 2020, the oil price has dropped significantly and shares of numerous oil companies were trading on a huge discount. When the oil price goes back to normal, those who bought the shares of oil companies during the lows, have made huge profits. Will it be the same for semiconductor stocks as well - buy when people are selling on fear?
I feel that semiconductor chips are similar to commodities in today's world and can be regarded as a basic necessity in our daily life. Will u be buying the dip now? How much further can it drop?? Let me know your opinion!
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