When putting together a well-diversified, long-term portfolio, we can’t always keep ourselves exclusively invested in deep-discount, undervalued sectors. Sometimes, we want to have exposure to an industry, and need to make sure it is, by comparison, fairly priced.
Semiconductors are still hugely important in the modern tech economy. That seems so self-evident that you’d think we wouldn’t need to keep saying it, but as far back as when I was in college, a good 20 years ago, I was hearing that semiconductors were “old tech” and that the future was elsewhere. Yet here we are, and semiconductors are a $400+ billion industry.
There are a lot of plays within semiconductors, but I’m a big fan of the fabless companies. They don’t directly manufacture their designs, which saves a lot of money on production facilities, and makes understanding the business a lot simpler. In particular, I’d like to take a close