Semiconductor stocks have been on tear this year on increased overseas demand and innovative technologies.
Many new areas are stimulating demand for semiconductor. Autonomous cars, cloud computing, gaming, wearables, VR headsets, drones, virtual reality devices, Internet of Things (IoT) and artificial intelligence all require chips. These areas are offsetting decline in demand from established technologies such as PCs and smartphones.
As a result, ETFs that concentrate on chips have performed especially well.
In particular, iShares PHLX, ETF SOXX , VanEck Vectors Semiconductor ETF SMHand PowerShares Dynamic Semiconductors Fund PSI have been hitting multiple highs lately. In addition, they are currently leading the tech surge. These funds have been up 9.7%, 10% and 12.1%, respectively.
Furthermore, this trend is likely to continue this reporting cycle. That is because most of the chipmakers are poised to surprise again this quarter.