With the world becoming more technology dependent during the Pandemic, semiconductor chips have become quite the hot commodity. Needed for almost anything tech-related - from laptops to phones to gaming devices to tech-dependent cars - semiconductor chips could not have be produced fast enough over the last year and a half, as extremely high-demand has caused a shortage of processor chips during the latter part of 2020 and the early part of 2021.
Though the scarcity of chips upended many industries, it was good news for chip makers. And although it’s unclear how long the chip shortage will last and how it will continue to impact other industries, one thing is certain - this demand has supercharged the industry. As other sectors have struggled to find sustained success during last few months, the semiconductor industry has remained steady.
The demand for semiconductors can be seen in the MVIS US Listed Semiconductor 25 Index (ticker: MVSMH), which tracks the 25 largest and most liquid US-listed companies that derive at least 50% of their revenues from semiconductors. MVSMH is up nearly 6% over the last month and nearly 53% over the last year. With the world becoming more and more dependent on technology, the demand for semiconductor chips should only continue to increase.
MVIS US Listed Semiconductor 25 Index
Source: MV Index Solutions. All values are rebased to 1000. Data as of 31 July 2021.
Steven Braid is a Data and Marketing Analyst at MV Index Solutions. He is responsible for supporting the data, marketing, research, and product services. Prior to working for MVIS, Steven worked as an equity research analyst for Dane Capital Management, a special situations hedge fund, where he focused on SPACs and other forms of special situation transactions. Prior to his time in Finance, he worked as a professional journalist, publishing for the New York Times, USA Today, and other national periodicals. Steven has a M.S. in Data Analytics & Applied Research from the Baruch College Zicklin School of Business, and a BA in International Political Economy from the University of Michigan.
The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.