Semiconductor chip stocks have been at the center of everyone’s attention lately…
You can thank the ongoing chip shortage impacting several industries including everything tech-related and the automotive space for that one, folks.
But more and more items involve chips to function every day… I’m talking about cars, TVs, refrigerators and now even microwaves rely on chips.
I mean, just think about it…
The world is becoming automated, with smart homes and offices a reality now. When you combine that with the post-COVID-19 pandemic spending we’re about to see, it’s going to create even more demand for chips and chip stocks to watch in the coming months.
And that’s especially true with EVs becoming a part of our everyday lives. So in today’s video, I’ll give you two of my favorite chip stocks to watch… Both are picking up major momentum!
If you look at the performance of the VanEck Vectors Semiconductor ETF (Nasdaq: SMH), which tracks the semiconductor index, it’s seen a 100-plus percent gain over the past 12 months.
And with the influx of capital moving into the stock market — and the recent stimulus checks providing even more liquidity — I anticipate even more upside.
That’s especially true for semiconductor companies that are technically breaking out right now and have strong fundamentals to back up aggressive expansion, and growth into new territories.
There are two semiconductor stocks making major headways in the past several months.
And I believe these chip stocks to watch are positioned for more upside in the months ahead.
Now, I’d personally wait for a short pullback before entering either one of these two stocks because their momentum levels are a bit too hot right now. And a pullback would offer a lower risk opportunity based on volatility levels we’re seeing right now.
We’d ideally want both stocks to hit their 50-day moving averages, which should give us a nice little bounce and a short-term entry opportunity.
So check out my short video below for my favorite chip stocks to watch — and even more on the best ways to trade them. Also be sure to share your thoughts in the comment section below.
And as always, don’t forget to subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video!
P.S. Very few people know this, but there’s a way to win in the markets even when wrong about the direction of a stock.
Wall Street legend Chuck Hughes just discovered a trading strategy so powerful he’s been able to signal winner after winner…
Even when the stock market moves against him!
Now Chuck is finally revealing to the world what he’s found, and how anyone can start using this strategy to pull potential profits today.