Intel Corporation will pick up the baton of quarterly reports this week, but the first results of the last reporting period are already inspiring investors who prefer to invest in shares of companies in the technology sector. The PHLX stock index has grown by 11% since the beginning of January, supported by the ASML quarterly report published yesterday.
As noted by Bloomberg, for the Philadelphia Semiconductor index, this January will be the best in terms of growth since 2012. While the S&P 500 index covering companies in different sectors of the economy has grown by only 1.8% since the beginning of the year, the growth in stock prices in the technology sector speaks of investor confidence in the ability of core companies to increase revenue in the foreseeable future.
Chip developers, whose shares last year, with the exception of Intel, were actively growing in price, are now losing out to the securities of suppliers of equipment and materials for the production of semiconductor components. The shortage of the latter is forcing manufacturers to expand capacity, so capital costs will rise, and suppliers of equipment and materials will be among the beneficiaries of this trend.
According to analysts at Evercore ISI, securities of ASML, Applied Materials and Lam Research are now the most attractive for investors. AMD, Texas Instruments and Lam Research will publish their quarterly reports next week, which may become an additional catalyst for the growth of core stock indices.
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