Qualcomm vs. Synaptics: Which Semiconductor Stock is a Better Buy?

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Despite the current semiconductor chip shortage, which has impacted the production of various industries worldwide, the global semiconductor industry witnessed 27.6% year-over-year sales growth in the third quarter. And investor optimism in this space is evident in the SPDR S&P Semiconductor ETF’s (XSD) 21.1% gains over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) 6.7% returns.

Increasing investments by governments and enterprises to address the global chip shortage are expected to stabilize chip supply by the end of 2022. This, along with recent technological breakthroughs in the chip manufacturing process, should drive the industry’s growth. The global semiconductor market is expected to grow at a 7.7% CAGR to $778 billion by 2026. So, both QCOM and SYNA should benefit.

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