Cutting-edge chipmakers stand out as the best-performing industry across sectors and regions.The industry became the backbone of the economy through the prevalence of internet-connected devices and the emergence of cloud storage networks.
"I launched right at the bottom with a really negative view on the sector," Bernstein's Rasgon said. "Literally six weeks after I launched, everybody started beating numbers by double digits." "All of a sudden, a lot of the companies didn't have the capacity in place to support the order. The lead time, how long it takes between placing the order to getting the parts, stretched out to 25 weeks," Rasgon said.
The sector soared 377% in the past 10 years, more than doubling the S&P 500's 182% climb.The biggest exchange-traded funds in the industry —which tracks the 25 largest U.S. chipmakers— also surged more than 400% this decade.