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Even though the ongoing global semiconductor shortage has impacted several industries, the semiconductor industry has been thriving due to the rising prices of chips. While huge investments are helping semiconductor manufacturers increase production, the supply shortage may not end anytime soon. Increased demand for chips, primarily from consumer electronics and automotive industries, should keep driving the industry’s growth. According to a Fortune Business Insights report, the global semiconductor market is projected to grow at a CAGR of 8.6% between 2021 and 2028. Therefore, both AVGO and AMD should benefit.
AMD has gained 6.2% over the past month, while AVGO has returned 5.6%. Also, AMD’s 32.7% gains over the past three months are significantly higher than AVGO’s 18.9% returns. Moreover, AMD is the clear winner with 78.1% gains versus AVGO’s 27.3% returns in terms of the past six months’ performance.
