The best of the S&P 500 – Semiconductors

I have had the privilege of covering some of the best stocks around.  The latest years stocks like Tesla & Amazon have really excelled.  You might wonder why I from time to time find some real winners.

The last year I have focused on semiconductors and the company AMD in particular.

The semiconductor index SOX has been a real winner for years.  The index up more than 400% from the bottom of the financial crisis.

The last year the graphics semiconductor co Nvidia has climbed to the   No. 1 spot of the S&P500 with a stellar 217% return.  Close behind AMD  in 2nd place returning 172%.

Why did I start covering AMD in July 2016? It seems like I have been lucky to focus on one of the best stocks around.

The summer of 2016 AMD was priced around $5.50. The stock had a nice year returning more than 100%. Sometimes such winners get my attention.

It was talks of a turnaround for the company and it had just come up with stellar earnings.  I believe in buying into co’s with nice positive trends, believing the trend to continue.  Another factor I use when I pick stocks is buying after positive news.  Stellar earnings being such a positive occasion.

The semiconductor sector performing for years.  Growing demand for semiconductors the obvious reason.

AMD is going into the server segment of Intel which is very profitable, with its Epyc chip.  The server segment being interesting now with the growing cloud business. Further they will enter the profitable high end segment of grahics processors of Nvidia.  Two very interesting strategies.  These strategies to make a difference in the top and bottom line of the company, if successful.

The semiconductor industry is one of the top performing industries.  With new attention around cloud services and the upcoming new artificial intelligence segment.  The industry set to grow with a probable increased usage of semiconductors, that be in smart houses, self driving cars or server parks for the cloud sector.

The market has believed and does believe in the future of semiconductors. One of the most interesting industries around.

 

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