COHU - 1 Semiconductor Growth Stock Set to Crush the Market This Year
The semiconductor industry is responsible for producing the advanced computer chips which power our most prized consumer electronics. They're in everything from our smartphones to the cars we drive, and in 2021 the industry was one of the best performing sectors with the iShares Semiconductor ETF (NASDAQ: SOXX) , returning 44%. By comparison, the broad S&P 500 stock market index returned 26.9% for the year.
The strong gains were generated thanks to soaring demand, which was met with crippling supply shortages caused by pandemic-related production shutdowns across Asia and Europe. These two factors led to higher semiconductor prices, greater profits, and fresh investments in expanding manufacturing capacity for the future.
Semiconductor-service company Cohu (NASDAQ: COHU) was a big beneficiary of the industry's growth in 2021, and it's also set for a strong 2022. One Wall Street analyst firm thinks its stock could double from here, which would blow away the expected return of the broader market. Here's why.
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1 Semiconductor Growth Stock Set to Crush the Market This Year