Investing in semiconductor stocks can be challenging. As with all things rooted in manufacturing, the fortunes of chipmakers are highly sensitive to supply and demand. After a rough go in 2018 exacerbated by the U.S.-China trade war, the industry started to rally in 2019 -- culminating in a boom this year as many organizations around the globe have scrambled to make tech hardware upgrades during the pandemic. The PHLX Semiconductor Sector index is up 18% year to date as a result.
After an incredible run, a pullback in these cyclical businesses isn't out of the question. And if there's a market crash, there will also be an opportunity to buy Micron Technology (NASDAQ: MU), Cirrus Logic (NASDAQ: CRUS), and Taiwan Semiconductor (NYSE: TSM).
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