In December, we listed analysts’ favorite semiconductor stocks for 2022. That hasn’t turned out well. But after chipmakers’ stocks have been hammered, the group is now trading at “normal-level valuations,” according to Matt Peron, director of research at Janus Henderson Investors. For long-term investors, it may help to see which companies in the sector are expected to grow most rapidly over the next two years.
Peron, in an interview, said one reason for this year’s decline for semiconductor stocks was that they had had a good, long run, stretching valuations. “Semiconductors are cyclical,” he said. In his role, Peron and his team provide advice to many portfolio managers, including those of the Janus Henderson Technology and Innovation Fund
JATIX.
One of the biggest players, Intel Corp.
INTC,
will publish second-quarter results on July 28 after the market close. Here’s a preview. This space is very much in play, with the Senate just passing a bill that includes $52.7 billion in subsidy for the semiconductor industry. The bill passes to the House of Representatives which may follow suit this week. President Joe Biden has expressed support for the bill.Cheaper than the S&P 500 The stock-market benchmark for this corner of the technology sector is the PHLX Semiconductor Index
SOX,
which is made up of 30 stocks of U.S.-listed makers of computer chips and related manufacturing equipment and is tracked by the iShares Semiconductor ETF
SOXX.
This year’s action for SOXX looks ugly, when compared to the movement of the SPDR S&P 500 ETF
SPY
:
The iShares Semiconductor ETF has fallen much further than t …