The never-ending demand for more technology creates long-term growth trends for semiconductor businesses. In the short term, however, they are vulnerable to wider economic pressures – demand for chips will fall off as the economy slows down.
In fact, as far as the chip industry is concerned, the world is already in a recession.
For the past three decades, a globalized production model has created a series of semiconductor giants across the world. In other words, in this sector, bigger has been better. Despite recent struggles, the stocks of all the semiconductor companies market caps have at least doubled in the past five years.
Many on Wall Street believe investors are already starting to look beyond the prospect of a recession. The market is becoming more desensitized to negative estimate revisions, as the focus begins to shift towards signs of recovery.
So let’s look past the possible coming recession, and see what semiconductor designer stocks are the most attractive right now. To do that…
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