Chip Stocks Roar Back as Market Darlings After Mauling by Bears
Battered in the June selloff that sent American equities into a bear market, chipmaker stocks are staging a stunning rebound this month.
Bolstered by evidence that supply-chain issues are easing and demand is growing, the Philadelphia Stock Exchange Semiconductor Index has surged 19% since July 1 handily outpacing the broader market rebound after the group’s valuation sank to the lowest level in three years. It continued its run Thursday, gaining 1.5%.
Earlier this month, Taiwan Semiconductor Manufacturing Co. announced better-than-expected quarterly results, while Samsung Electronics Co. reported a 21% jump in revenue. On Wednesday, data for mobile phone shipments from China showed a jump of 9.2% in June, with overseas vendors like Apple Inc. leading demand. Meanwhile, the US Senate is advancing a $52 billion bill that would provide subsidies for the semiconductor industry.