Bitcoin’s downtrend is likely to continue over the next couple of months on an increasing regulatory crackdown on cryptocurrencies. However, in contrast, the semiconductor industry is poised to grow substantially over the long run, driven by strong demand and significant federal and corporate investments to boost supply. Thus, we think top chip stocks Intel (INTC), Broadcom (NASDAQ:AVGO), Texas Instruments (TXN), and Qualcomm (NASDAQ:QCOM) should be attractive investment bets now.Bitcoin has plunged 44.3% over the past three months, making it the worst performing cryptocurrency over this period. The most popular cryptocurrency is currently trading below its $39,539.50 and $36,292.27 respective 50-day and 200-day moving averages, which indicates a downtrend. An intensifying regulatory crackdown on cryptocurrencies, particularly in China and the U.K., will likely keep bitcoin prices under pressure in the near term.
However, the semiconductor industry is gearing up to be a major market mover over the long run given the widespread application of semiconductor chips in consumer electronics and electric vehicles (EVs). The U.S. Innovation and Competition Act authorized $110 billion to be spent over five years to aid research in semiconductors, artificial intelligence and other technology. U.S. lawmakers have also proposed an estimated $25 billion to boost domestic semiconductor production. These investments aim to make the U.S. semiconductor industry highly competitive in the global markets.
The strong demand and improving supply conditions should allow the chip industry to generate substantial growth over the long term. Thus, we think shares of established companies in this space, Intel Corporation (NASDAQ:INTC), Broadcom Inc. (AVGO), Texas Instruments Incorporated (NASDAQ:TXN), and Qualcomm Inc . (QCOM), are well-positioned to deliver sustainable returns this year and beyond.