For technology investors, no industry subsector has been hotter than the semiconductor makers. Driven by demand for artificial intelligence (AI), the chip stocks have seen their revenues, profits, and share prices surge — sometimes by as much as triple digits. That’s been wonderful for portfolios and investors who were early to the party. But what about now?
With valuations high and AI demand now potentially baked in, some investors have wondered if the semiconductors can maintain their torrid growth.
The answer may be a solid yes. While AI demand is still the main driver, the industry’s next rally and continued growth is coming from other avenues, such as chips for vehicles and a new PC refresh cycle. For investors, these other avenues could provide plenty of additional returns and dividends for the semiconductors.
