NVIDIA, Intel, AMD shares & Co. in focus: "Category number one" in the portfolio – Mark Mobius sees potential for semiconductor stocks

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• Semiconductor stocks with partly strong performance in the new year
• US and China: Support investments in the sector
• Mobius: Chipmakers are “the number one category we have in our portfolio”

Recovery for chip values

After 2022 was a difficult year for technology stocks and thus also for semiconductor stocks, they started the new year on a positive note. For example, NVIDIA shares have already gained around 79.2 percent on the NASDAQ since the beginning of the year, Advanced Micro Devices (AMD) shares have climbed around 48.1 percent and Applied Materials shares have climbed around 23 percent .64 percent. Broadcom, Micron Technology, QUALCOMM and Intel also rose in value, albeit less significantly.

However, it is not only in the USA that semiconductor stocks are currently recovering; the global pioneers from Asia have also been able to make up ground in the recent past. For example, the papers of the well-known Apple supplier Taiwan Semiconductor Manufacturing co. (TSMC) on the Taiwan stock exchange has risen by more than 15 percent since the beginning of the year, and the shares of South Korean SK Hynix and Samsung Electronics have also increased this year by 11.7 and 9.04 percent, respectively.

The Philadelphia Semiconductor Index, “a modified index weighted by market capitalization composed of companies principally engaged in the design, distribution, manufacture and sale of semiconductors,” as Nasdaq writes on its website, was up this year by around 23 percent and according to Bloomberg is currently on the way to its best quarterly outperformance against the broader S&P 500 since September 2016, while the latter had to give back almost all of its interim gains this year until recently.

supporting factors

According to Bloomberg, investor focus has started to shift towards the sector’s long-term growth prospects and cheaper valuations. Future technologies that require intensive computing power, such as networked devices and cars as well as artificial intelligence, are likely to increase the demand for chips in the future. In addition, the technological conflict between the USA and China is currently flushing billions into the chip industry, while countries are competing to set up domestic semiconductor production.

Mark Mobius backs semiconductor stocks

Mark Mobius, who worked at Franklin Templeton for many years before founding Mobius Capital Partners with Carlos von Hardenberg – who also previously worked at Franklin Templeton – is also currently heavily investing in chip stocks due to the increasing investments in the USA and China in the semiconductor industry . Chipmakers are “the number one category we have in our portfolio,” Mobius revealed in a recent interview with Bloomberg Television. According to Mobius, the companies associated with the industry will do well because “both the US and China are investing enormous sums in semiconductor research and production”.

As Bloomberg reports, Asia is in a prime position to benefit from the industry’s improving prospects. There are global pioneers such as TSMC and Samsung Electronics from South Korea. Mobius, meanwhile, is “very optimistic” about India as it has a bigger share of manufacturing in Asia, and said the prospects for China and Indonesia remain “good”.

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