Semiconductor Sector is full of activities in the last few days



While the mega-deal news of Broadcom ($AVGO) acquiring Qualcomm ($QCOM) is still humming in the air pushing the semiconductor sector hanging high in mid air, we have news from Intel ($INTC) joining effort with AMD ($AMD) to combine their products to take on Nvidia ($NVDA). AMD was up 6% strong on Monday morning while Intel was up more than 1% near market open. As a result, the semiconductor index ETF iShares PHLX SOX Semiconductor Sector Index Fund ($SOXX) is gapping up 1% strong this morning.

The world is on the verge of some major advancement in deploying technologies. I see mega trends like mobile devices to IoT (internet of things), cloud computing, big data, AI, mobile payment, digital currencies & blockchain, self-driving automobile and so many more other new and disruptive technologies driving dynamic changes in many business sectors. While there are plenty of opportunities in various sectors and companies, the semiconductor sector is really at the very foundation of all the technologies advancement.

Despite that $SOXX looks rather high in valuation, I believe that it is only at the beginning of a secular uptrend as technologies continues to rely on chips, memories and storages to build their business platform. For those who have the stomach for volatility, semiconductor sector is land of full of opportunities and gambles.

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