Semiconductors: 2015 in Review; Where to Bet Your Chips in 2016

[Daniel Nenni]

There is an interesting chart of the Philadelphia Semiconductor Index (SOX) on The Street today. QCOM really has taken a beating this year! Personally I'm not betting my chips anywhere near here. I really see a new era of semiconductor on the horizon where systems companies like Apple, Samsung, Huawei, etc... dominate chip production. I also see a new wave of semiconductor start-ups that will overpopulate the IoT market making it very difficult for the bigger chip companies to realize big IoT margins. This is a long term look as I think short term (next year) will certainly see a SOX uptick. Just my opinion of course, you would be better off asking your dog for stock advice.

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Semiconductors: 2015 in Review; Where to Bet Your Chips in 2016 - TheStreet

 

[Daniel Nenni]

Another one on QCOM:

Qualcomm's Plan for 2016 after Its Bumpy 2015 Ride

Is Qualcomm a Good Investment for the Long Term? - Yahoo Finance

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[Daniel Nenni]

Another interesting article on the chip sector:

Can the chip sector get even smaller in 2016? - MarketWatch

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[JeffreyHF]

That pie chart is misleading and distorted on several levels, IMO. Included in the China revenues are all QCT chips that are sold FOB Taiwan ( e.g., those fabbed by Taiwan Semi), which is still considered part of China, and the South Korean revenues are also skewed by chips sold FOB South Korea (e.g., those fabbed by Samsung). Additionally, even though most of Qualcomm's revenues come from QCT, most of their profits emanate from QTL.