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News about President Biden‘s huge spending plans highlights infrastructure. But American semiconductor companies can see a big profit, and shares in the sector are already beginning to rebound. The iShares PHLX Semiconductor SOXX ETF, + 2.44%, was up 2.4% on March 31, with all 30 constituents showing gains for the session. SOXX tracks the PHLX SOX semiconductor index, + 2.64%. Among the 30 stocks, 15 are down at least 10% since February 16, when SOXX hit its all-time high. Biden’s spending plan In February, the board of directors of the Semiconductor Industry Association (SIA), which includes CEOs or Senior Executives of Advanced Micro Devices Inc. AMD, + 3.29%, Nvidia Corp. NVDA, + 3.70%, Qualcomm Inc. QCOM, + 1.91%, Intel Corp. INTC, + 0.36%, Texas Instruments Inc. TXN, + 1.64% and others sent a letter to Biden.
They wrote that the US market share in global computer
had “steadily declined” to 12% from 37% in 1990. The SIA board said the loss of market share was largely due to the loss of market share. The result of significant government
investment in the semiconductor industry in other countries. , while there were none in the US (You can read the full letter here). And now the president is trying to give the US semiconductor industry what it
wants. SIA CEO John Neuffer said in a statement on March 31 that Biden’s spending program would “invest ambitiously in U.S. semiconductor workers, manufacturing
and innovation, three cornerstones of the strength of America and its future “. Bank of America
investment strategists included chipmakers on their list of companies that could benefit from the Biden plan. The spending package would include $ 50 billion for the American semiconductor industry amid a global chip shortage. In addition, $ 174 billion would be set aside to help the United States “win” the global competition for dominance in the electric car
industry. Obviously, this would help Tesla Inc. TSLA, + 5.08%, but it would also support the makers of the myriad computer chips used in vehicles. Most since the close of February 16, the day SOXX reached its all-time high:
(Set of facts)
Wall Street‘s Favorite Semiconductor Stocks Here are the 15 SOXX stocks with the highest 12-month upside potential implicit in consensus price targets among analysts surveyed by FactSet:
The table includes the forward price-earnings ratio. In comparison, the leading P / E ratio for SOXX is 22.7 and the leading P / E for SPDR S&P 500 ETF Trust SPY, + 0.41% is 21.8. Don’t Miss: These infrastructure stocks could rise as much as 41% in one year under Biden’s massive spending plan, analysts say.