Chip stocks could return to their bull market highs and beyond, and be the key trade of the fourth quarter, according to Evercore ISI.
In fact, Rich Ross, head of technical analysis at the firm, expects there is 20% more upside to semiconductor stocks as represented by the VanEck Semiconductor ETF (SMH) into year-end.
Similarly, the iShares Semiconductor ETF (SOXX) climbed more than 18% this year, about in line with the S & P 500.
SOXX 1D mountain iShares Semiconductor ETF (SOXX) But the technical setup is encouraging from here, Ross said.
Now that semiconductor stocks have double bottomed above key support levels — a technical pattern that suggests new upside potential — the sector is clear to outperform, he said.
Persons:
Rich Ross, Ross
Organizations:
ISI, VanEck Semiconductor, iShares Semiconductor, Semiconductor, Broadcom, Taiwan Semiconductor Manufacturing, Micron Technology, Nvidia