This Soaring Tech Stock Could Keep Running Higher
The semiconductor sector has made a terrific recovery over the past few months after March's novel coronavirus-fueled crash thanks to strong demand for chips used in data centers and memory products. And the recent update from chip giant Samsung indicates that the semiconductor industry continues to see good times.
The South Korean giant anticipates a 23% jump in its second-quarter operating profit on account of strong data center chip sales. The good part is that chip demand from data centers is likely to remain strong in the wake of COVID-19 as organizations shift their employees to a work-from-home model to maintain business continuity.
McKinsey estimates that semiconductor demand for wired applications is expected to jump around 8% to 11% this year thanks to an increase in internet traffic. The management consulting firm expects wired semiconductor sales to increase in the future even if the broader economic weakness persists.
Source Fool.com
