4 Chip ETFs You Should Not Ignore

Chips, the basic building blocks of computation, have become integral in everything from smartphones to cars, laptops, PCs, video games and data centers. As the pandemic supercharged the demand for computing, the world faced the worst chip shortage in many years.

Most advanced chips are designed in the US, but only about 12% are manufactured here. Taiwanese chipmaker TSMC TSM, the world’s largest contract chip manufacturer, accounts for more than 90% of most advanced chips. The company plans to increase prices of most chips by 10% to 20%, per WSJ.

We have also seen an acceleration in the industry consolidation, with Nvidia’s NVDA plan to acquire chip designer Arm Holdings for about $40 billion and AMD’s AMD $35 billion deal to purchase Xilinx XLNX. Western Digital WDC is planning to merge with Japan’s Kioxia in a deal exceeding $20 billion.

To learn about iShares PHLX Semiconductor ETF SOXX, VanEck Vectors Semiconductor ETF SMH, SPDR S&P Semiconductor ETF XSD and Invesco PHLX Semiconductor ETF SOXQ, please watch the short video above.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.