I should buy more SOXX

[freedom2022]

In May, I read that stocks of semiconductor industries were down because of chips shortage. I said what? Since there were shortages, the chips business would be blossom soon.
I bought 40 shares of SOXX, ISHARES SEMICONDUCTOR ETF.

The stocks go up 26% in six months.
I should buy more back then.

 

[Bigdawg]

I play VGT instead. Up 23.39 YTD. Expense ratio is only .10 vs .46 for SOXX.

 

[Qs Laptop]

That was a nice move, picking up your SOXX.

I bought some FSELX, Fidelity's semiconductor sector fund two years ago for my Roth IRA. I wish I had bought more. So in March and April 2020 I bought AMD and DIOD stock. Both have hit all time highs recently.

I don't see how a long term investor can go wrong with semiconductor funds/ETFs. It's not like semiconductors will fall out of demand.

 

[38Chevy454]

It is always tough when reviewing in hindsight and evaluating the what-ifs. The good thing is you did get some nice returns on the amount you did invest. Be happy with that.

 

[Luvtoride]

I love the semi-conductor industry and with good names in this field, none of these ETFs will falter.
I own a couple of individual stocks in this area including ON Semiconductor (ON) up 61% since buying it in March. They recently reported earnings and their margins have improved dramatically.
I like those ETFs mentioned and think I will invest in those too. Most of these companies have commitments from customers to buy all they can produce thru 2023 and beyond!

 

[aja8888]

I love the semi-conductor industry and with good names in this field, none of these ETFs will falter.
I own a couple of individual stocks in this area including ON Semiconductor (ON) up 61% since buying it in March. They recently reported earnings and their margins have improved dramatically.
I like those ETFs mentioned and think I will invest in those too. Most of these companies have commitments from customers to buy all they can produce thru 2023 and beyond!

You have to hope that overproduction doesn't cause price wars. That used to happen with the "RAM price wars" a decade ago. Back then, I remember Micron stock going to $10.

 

[Luvtoride]

You have to hope that overproduction doesn't cause price wars. That used to happen with the "RAM price wars" a decade ago. Back then, I remember Micron stock going to $10.

Yes, understood, but I believe that EVs are much of what’s “driving” the demand for semi conductors. ON which provides chips for the auto industry has said that the difference is $100 in chip sales per vehicle for ICE cars and $500 per vehicle for EVs.

 

[aja8888]

Yes, understood, but I believe that EVs are much of what’s “driving” the demand for semi conductors. ON which provides chips for the auto industry has said that the difference is $100 in chip sales per vehicle for ICE cars and $500 per vehicle for EVs.

The same overproduction happens in the chemical industry I came out of every decade or so. When business is down, the demand for polyethylene goes to the crapper. Then plants get mothballed, shut down, converted, etc and when demand comes back, a bunch of new players comes in and builds ethylene plants. Then the price goes back down. This has been going on for decades.

These microprocessors are commodities, just like oil, coal, plastic pellets, etc. Now if China takes over Taiwan, that could be a big deal as then the CCP would have control of TWC and all the other chip manufacturers there.