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Make Huge Profits with This Top Ranked Semiconductor ETF - ETF News And Commentary

Benzinga.com
0 Comments| September 12, 2014

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The technology sector has shown nice strength over the past few months exclusively on impressive performances of semiconductor stocks. The Internet and social media meltdown early in the year had compelled investors to shift their focus to value-centric traditional areas like semiconductors, pushing the stocks higher.

Then, encouraging industry fundamentals and strong corporate earnings from some semiconductors industry primes such as Intel (NASDAQ: INTC), Micron Technology (NASDAQ: MU), Broadcom (NASDAQ: BRCM) and Texas Instruments (NASDAQ: TXN) fueled optimism in the broad space. The bullish trend is likely to continue through the rest of the year on the strengthening U.S. economy and rising demand for complex computer chips.

Capacity utilization, more advanced technologies and new gadgets will continue to fuel demand for the chips and other semiconductor products. In particular, Apple's (NASDAQ: AAPL) new products – iPhone 6 and iWatch – will definitely drive sales of electronic devices in the months ahead as consumer spending generally rises in the second half of the year from back-to-school to the holiday shopping season (read: 3 ETFs for Last-Minute Back-to-School Shopping).

Further, the PC market is stabilizing and will likely see accelerated growth in the remaining part of the year thanks to replacement of older devices and upgrades from Windows XP.

With that being said, the global semiconductor industry hit a monthly record sales of $28.1 billion in July, up 9.9% year over year, and remains on pace for the highest-ever sales this year. As per the World Semiconductor Trade Statistics (WSTS), global industry sales would grow 6.5% this year and then slow down with growth of 3.3% in 2015 and 4.3% in 2016. Most of this growth will come from smartphones, tablets and automotive while microprocessors will see a soft decline.

Further, the upside to this industry is confirmed by the Zacks Industry Rank as 10 out of 11 semiconductor industries actually have a solid Rank at the time of writing. Radiofrequency, communications, ...

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