XTH - Semiconductor Volatility Is Back: What's Next?
Originally Published June 7, 2019
After a strong start to the year, semiconductor stocks have recently hit a rough patch. The storylines that helped to drive performance have become painful sources of concern. At the beginning of the year, positive sentiment around U.S./China trade relations helped to boost semiconductor stocks. Since early May, trade war worries have returned to the forefront for investors, with semiconductor companies paying the price.
Semiconductor Revenues Rely on China Growth and Trade
Semiconductor companies generate a significant portion of their revenues by selling their products to Chinese companies and consumers.