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Rising demand from several industries, such as consumer electronics and electric vehicles (EVs), is driving the industry’s growth. The global semiconductor chips market is expected to reach $553.6 billion by 2026, registering a 7.8% CAGR. And according to the U.S. Commerce chief, “As you know, we’ve been working on the semiconductor shortage since day one of the president’s administration, and it’s time to get more aggressive.” Furthermore, advancements in chip making processes should help the industry grow. Investor optimism in this space is evidenced by the SPDR S&P Semiconductor ETF (XSD) 23% returns over the past three months.
Given this backdrop, we think it could be wise to bet on quality large-cap chip stocks Intel Corporation (NASDAQ:INTC), Micron Technology, Inc. (NASDAQ:MU), and United Microelectronics Corporation (UMC). They are expected to deliver substantial returns in the long run based on their market dominance and diverse portfolios. Also, these stocks are rated A (Strong Buy) in our proprietary rating system.
