As demand for semiconductors continues to outpace supply, global semiconductor sales grew by $ 144.8 billion in the third quarter of 2021, an increase of 27.6%, according to Semiconductor. Industry Association (SIA).
According to a Digitimes Asia article, âSemiconductor sales amounted to $ 48.3 billion in September 2021, up 27.6% from the previous year and 2.2% year-on-year. month. Monthly sales are compiled by the World Semiconductor Trade Statistics (WSTS) organization and represent a three-month moving average.
âSemiconductor shipments reached record levels in the third quarter of 2021, demonstrating both strong global demand for chips and the industry’s extraordinary efforts to increase production to meet that demand,â said John Neuffer, Chairman and CEO of SIA. âSales in the Americas led the way, growing more than any other regional market, both month over month and year over year. “
A leveraged option for traders
Traders looking for amplified returns with a leveraged ETF in the semiconductor industry can look at the ETF Direxion Daily Semiconductor Bull 3X (SOXL). SOXL seeks daily investment results equal to 300% of the daily performance of the PHLX Semiconductor Sector Index.
The fund, under normal circumstances, invests at least 80% of its net assets in financial instruments, such as swap contracts and index securities, ETFs that track the index and other financial instruments that offer daily leveraged exposure to the index or ETFs that track the index. The index measures the performance of domestic companies engaged in the design, distribution, manufacture and sale of semiconductors.
“This ETF offers 3x daily long leverage on the PHLX Semiconductor Index, making it a powerful tool for investors with a short-term bullish outlook for semiconductor stocks,” noted an analysis of the ETF database. âInvestors should note that SOXL’s leverage resets daily, resulting in a mix of returns when held for multiple periods. SOXL can be a powerful tool for sophisticated investors, but should be avoided by those with a low tolerance for risk or a buy and hold strategy.
The momentum is obviously on the semiconductor side, with SOXL up nearly 67% despite headwinds in the market such as rising yields and inflation fears. If fundamental factors like a chip shortage persist, SOXL could continue its uptrend until 2021.For more news, information and strategy, visit the website Leveraged and reverse channel.