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On September 6, technology stocks were defeated for the second day in a row, led by a sell-off in semiconductor stocks after Morgan Stanley MS warned of a weak memory market. KLA-Tencor Corporation KLAC has also relaxed its outlook for the rest of the year. This has seen other semiconductor stocks collapse on Thursday.
That said, technology stocks have been largely responsible for the long-overdue market recovery. But fears of bubbles are making a comeback thanks to a crowd of market watchers. They believe that the trade war finally began to weigh on technology stocks. However, industry fundamentals remain solid as global semiconductor sales increased in July, according to the Semiconductor Industry Association (SIA). Given this scenario, semiconductor stocks are essential for your portfolio.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "Semiconductor sector"data-reactid =" 24 ">Semiconductor sector
On September 6, a wave of bad news began to dampen investor confidence. First and foremost, Morgan Stanley warned of the weakness of the memory market. If that was not enough, KLA-Tencor, which manufactures equipment used in semiconductors, told investors at the Citigroup Technology Conference that its December quarter would be lower than expected due to the weak market Memory.
This caused panic among investors leading to massive sales, with Micron Technology, Inc. MU leading the carnage. Micron's shares fell 9.9% after the Philadelphia Semiconductor index fell 2.7% as all major semiconductors were affected. Shares of semiconductor equipment manufacturer Applied Materials, Inc., AMT and KLA-Tencor declined by 5.3% and 9.7%, respectively.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "Global sales of semiconductors rise"data-reactid =" 29 ">Global sales of semiconductors rise
Semiconductor stocks may have been affected, but technology stocks have been driving the market recovery for some time. Despite recent attacks, the Semiconductor Industry Association reported on September 4 that global semiconductor sales reached $ 39.5 billion in July, up 17.4% year-on-year. . In addition, global semiconductor sales increased 0.4% from the $ 39.3 billion total in June.
John Neuffer, President and CEO of the Semiconductor Industry Association, said the global semiconductor industry had its "highest monthly monthly sales in July" with "over 20% growth in China and the world. Americas. " followed by 20.7% and 11.7% in America and Europe.
In addition, on September 5, the World Semiconductor Trade Statistics (WSTS) raised its forecast for the global chip market in 2018 for the second time in two months. The WSTS now expects the global semiconductor market to grow by 15.7 percent in 2018 to $ 477 billion.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "Our choices "data-reactid =" 33 ">Our choices
The United States is the largest semiconductor manufacturing country, with China being its largest market. Despite these fears, technology stocks are less sensitive to trade war than industrial stocks. In addition, China's limitations in creating its own technology sector may prevent it from acting against US-based technology players.
With the global semiconductor industry posting its strongest monthly sales in July, recent fears could be exaggerated. That's why semiconductor stock selection still looks like an intelligent option at this point. However, it can be difficult to choose winning actions. We have reduced our search to the following values based on a good Zack ranking and other relevant parameters.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "Maxim Integrated Products, Inc. MXIM designs, develops, manufactures and markets a wide range of linear and mixed-signal integrated circuits, commonly referred to as analog circuits. "Data-reactid =" 36 ">Maxim Integrated Products, Inc. MXIM designs, develops, manufactures and markets a wide range of linear and mixed-signal integrated circuits, commonly referred to as analog circuits.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The profit growth expected by the company is 14, 4% the current year The Zacks consensus estimate for the current year has improved by 6.5% over the past 60 days. the complete list of today's Zacks # 1 stocks. "data-reactid =" 37 "> The company expects earnings growth of 14.4% for the current year, while the Zacks consensus estimate for the current year has improved. 6.5% in the last 60 days 1 (strong purchase) You can see the complete list of today's Zacks # 1 stocks.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "Vishay Intertechnology, Inc. VSH is one of the world's largest manufacturers of discrete semiconductors (diodes, MOSFETs and infrared optoelectronics) and passive electronic components (resistors, inductors and capacitors). "data-reactid =" 38 ">Vishay Intertechnology, Inc. VSH is one of the world's largest manufacturers of discrete semiconductors (diodes, MOSFETs and infrared optoelectronics) and passive electronic components (resistors, inductors and capacitors).
Vishay Intertechnology has a ranking Zacks # 1. The company expects 39.9% profit growth for the current year. The Zacks consensus estimate for the current year has improved 11.7% over the past 60 days.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – smt Mt (0.8em) – sm" type = "text" content = "ON Semiconductor Corporation ON is a provider of wideband integrated circuits and power management and standard semiconductors used in many advanced devices. "Data-reactid =" 40 ">ON Semiconductor Corporation ON is a provider of wideband integrated circuits and power management and standard semiconductors used in many advanced devices.
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