👑5 Quality Semiconductor Businesses
Hi partner! 👋
Today we will discuss 5 quality companies in the semiconductor sector.
In case you missed it:
The semiconductor sector has been a large winner in 2024 with +50% returns year to date.
Far outpacing the S&P 500 of ~15% year to date returns.
The sector has outperformed the S&P 500 significantly over the last 5 years with a return of 416% versus 85% from the S&P 500:
The top holdings of the VanEck Semiconductor, which is a ETF that tracks the semiconductor industry:
Extensive overview of the Semiconductor sector💎
The sector is divided into 6 different sub-sectors:
IP & R&D
Equipment & Components
IDM (Integrated Device Manufacturer)
Fabless Design
Foundries
Packaging, Assembly & Testing
Let’s take a look at 5 interesting businesses 🏰
Before we get started, I want to underline, that these businesses (although high quality) are expensive looking.
Much of the value is already priced into the assets, and the market is expecting high growth rates in the future.
This can be a catalyst to the downside if said expectations are not met.