Is It Time to Consider Rotating Back into Semiconductor Stocks?

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NVIDIA Corporation Notícia

Broadcom Inc,Taiwan Semiconductor Manufacturing,Vaneck Semiconductor ETF

Stocks Analysis by MarketBeat.com (Ryan Hasson) covering: NVIDIA Corporation, Broadcom Inc, Taiwan Semiconductor Manufacturing, VanEck Semiconductor ETF. Read MarketBeat.com (Ryan Hasson)'s latest article on Investing.com

The semiconductor sector faced sharp declines in July as investors rotated into defensive areas due to expectations of a Federal Reserve rate cut and the Japan carry trade unwind fiasco.Key stocks like NVIDIA, Taiwan Semiconductor Manufacturing, and Broadcom are showing bullish setups, signaling potential upside for the sector.

Yet fast forward two months, and the picture looks brighter for semiconductors. The SMH ETF has stabilized above critical rising moving averages and pared losses, now sitting just 13.6% below its peak. The ETF has formed a bullish technical setup, posting two consecutive higher lows and consolidating around the $250 level—close to a potential breakout zone.

The stock popped over 2% recently as momentum continues to shift upward, with analysts forecasting an 11.4% upside from current levels. Broadcom remains well-positioned as a critical player in the semiconductor supply chain, with significant exposure to both cloud computing and AI growth themes.

 

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