Pain or Gain Ahead of Semiconductor ETFs? (2 min read)
Semiconductor ETFs have jumped roughly 25% in the past month with Nvidia leading the rally. Warren Buffett’s recent $4 billion TSMC stake disclosure has also benefited the entire semiconducting sector. However, the industry is reporting declines in revenue due to slow demand and if recession hits, it will further deteriorate their earnings. As it’s possible the weakness continues, analysts suggest it’s best to wait and see before investing in this space.