The increasing popularity of consumer electronics in general, along with the ongoing rollout of 5G networks, have been driving up the demand for semiconductors amid a global shortage of the commodity. Broadcom (NASDAQ:AVGO) and Micron Technology (NASDAQ:MU) are two leaders in semiconductor production space that we think deserve a second look by investors amid the supply/demand imbalance. But let’s find out which of these stocks is a better buy now.Semiconductor chip stocks are the talk of Wall Street due to a current chip shortage. All indications now are that with the mass COVID-19 vaccination drive beginning to beat back the pandemic, and with federal relief dollars contributing to a resumption in consumer spending, pent up demand for 5G smartphones among other electronic devices, such as video game consoles and computers that require chips for functionality, bodes well for the semiconductor sector because these chips are integral to the production of the aforementioned goods.
So, we think beaten down chip stocks are worth a look now because it is only a matter of time until the economy fully reopens and demand for semiconductors climbs to a new level.
The challenge, of course, lies in pinpointing the best semiconductor stocks to buy and hold for the months ahead or even the long-term. We think investors should take a close close look at industry leaders, such as Broadcom (AVGO) and Micron Technology (MU). We think that are both attractive plays currently.