While the FANGs have taken most of the media’s attention, another tech sub-sector has been equally as good of a performer. The normally boring semiconductor manufacturers have been riding a wave of better earnings, sales and growth. All in all, the tech sub-sector was one of the best-performing corners of the market last year and through this year’s the first quarter.
However, lately, the chip stocks have started to stumble – falling by double digits in one month.
The recent drops are a painful pill to swallow for momentum and growth investors. But for income seekers, it could be one of the best opportunities to add the dividend-paying sector in a long time. Stocks are now much cheaper, offer bigger yields and still have plenty of long-term gains ahead.
