TECH - Semiconductor Stocks Historically Outperform Following 5% Selloff In A Day: Bank Of America | Benzinga
Semiconductor stocks, tracked by the IShares Semiconductor ETF (NASDAQ:SOXX), have taken a beating this week. BofA believes the heavy selling pressure on semis sets the sector up for outperformance into the end of the year.
What To Know: BofA Securities senior analyst Vivek Arya reminded investors to focus on fundamentals when doubt arises in a new note released late Wednesday.
Chip stocks got punished on Wednesday as investors rotated out of the red-hot sector following comments from President Joe Biden and former President Donald Trump.
Biden recently suggested that he’s considering putting tougher trade restrictions on semiconductor equipment and Trump said this week that the U.S. wouldn’t defend Taiwan from Chinese invasion and indicated Taiwan should pay the U.S. for protection from China.
The rising geopolitical uncertainty took a toll on chip stocks causing the semiconductor index to close down approximately 6.8% on Wednesday. ...