Chip Stocks Swept Up in Tech Rout Despite Lower Valuation, Faster Growth
- Semiconductor makers swept up in interest rate fears
- Sox index is down 16% this year, underperforming Nasdaq 100
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If any group should be holding up well in the selloff that’s ripping through technology stocks, it’s semiconductors.
Analysts predict chipmakers will report strong growth in fourth-quarter profits amid a global shortage, and their stocks in aggregate sell at a discount to the Nasdaq 100 Stock Index. Yet the Philadelphia Semiconductor Index is off to its worst start to a year since at least 1994 when Bloomberg records began, as the stocks get swept up in fears about rising interest rates that have weighed on the tech sector.