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Rising demand from several industries, including consumer electronics and electric vehicles (EVs), and the Biden administration’s pressure on Congress to pass a $52 billion spending bill before Christmas to tackle the crisis should drive the semiconductor industry’s growth. The global semiconductor chip market is expected to reach $553.6 billion by 2026, registering a 7.8% CAGR.
Given this backdrop, along with rising inflation and expected market volatility due to the effects of the COVID-19 omicron variant, we think it could be wise to bet on dividend-paying chip stocks Broadcom Inc. (AVGO), Intel Corporation (NASDAQ:INTC), and United Microelectronics Corporation (UMC). This is because dividend-paying stocks can reduce overall portfolio risk. Also, these stocks are rated Strong Buy in our proprietary POWR Ratings system.
