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Continued demand for tech devices from industries, corporations and remote workforces has helped the semiconductor industry to witness month-over-month sales growth of 4.1% in May 2021. To address the semiconductor chip shortage, the US Senate passed a bill that will allocate $52 billion to boost the domestic production of semiconductors. This, along with increasing initiatives by the governments of several other countries and enterprises to address the global chip shortage, has boosted investor optimism about the industry’s growth prospects. This is evidenced by the SPDR S&P Semiconductor ETF’s (XSD) 4% gains versus the SPDR S&P 500 Trust ETF’s (SPY) 3% returns over the past month. Therefore, we think both MU and WDC are likely to benefit from their industry tailwinds.
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