The semiconductor stocks forecast for 2016 is going to sound familiar to anyone who follows the industry closely.
The wave of mergers and acquisitions will continue, as will the sales struggles of last year - at least early on. But as 2016 goes on, we will see the start of a turnaround for the sector as trends like automotive tech and the Internet of Things spur new growth.
The semiconductor stocks forecast for 2016 is going to sound familiar to anyone who follows the industry closely.
The wave of mergers and acquisitions will continue, as will the sales struggles of last year - at least early on. But as 2016 goes on, we will see the start of a turnaround for the sector as trends like automotive tech and the Internet of Things spur new growth.
Here are the top semiconductor stocks to watch in 2016...
The tech sector is bonding: Avago Technologies Ltd. (Nasdaq: AVGO) recently agreed to pay $37 billion for Broadcom Corp. (Nasdaq: BRCM).
Back in March, NXP Semiconductors NV (Nasdaq: NXPI) said it's making an $11.8 billion acquisition of Freescale Semiconductor Ltd. (NYSE: FSL).
Snapping up a few shares of Xilinx stock looks like a pretty good idea right now.
That's because Xilinx Inc. (Nasdaq: XLNX) has moved to the top of the list of possible acquisition targets in the semiconductor industry.
Acquisitions mean higher stock prices.
A few tech stocks are poised to earn big profits from the auto industry boom. Some analysts attribute this boom to an improving economy and falling gas prices.
But there's another important catalyst they're not considering - and it makes Silicon Valley the real capital of the auto sales boom.
Here's how we can profit from this trend...
Best stocks to buy for the week ending Sept. 5, 2014:Last week for Money Morning Members, we highlighted seven stocks - five of which hail from the profit-rich tech sector.
At first glance two of the major trends reshaping the semiconductor industry seem like polar opposites...
On the one hand, the industry is in the midst of a major boom. On the other, it's also contracting.
For tech investors these conflicting indicators raise two questions:
First, how is this contradiction possible?
Second, and more to the point, how can we make money from it?
The Nasdaq experienced a sell-off in March and April, and has since rebounded. But not every tech sector has rebounded completely, and that's brought us some great stocks to buy.
According to Money Morning's experts, the semiconductor industry has never looked healthier, but it still faced the brunt of the recent sell-off. That's why they're recommending semiconductor stocks while they're trading at discounted prices.
In one high-tech sector, the projections for 2013 are calling for across-the-board revenue growth of as much as 10% - and parts of it could advance at three times that pace.
Now, double-digit growth in a slow-growth economy is pretty great all by itself. But the fact that these stocks have actually been negatively correlated to the broader stock market means this is an investment that could also serve as a bit of a hedge against a drop in the Standard & Poor's 500 Index.
So if you are really concerned that U.S. stocks could sell off this year, this could be one investment that will provide actual growth - and act as a hedge against a market downturn.
I'm talking about semiconductors - the bedrock of modern electronics.
Just look at these forecast numbers...
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