Posted 3/30/2024, 10:00:00 AM
Software Outshines Semiconductors for Investors as chip stocks flash warning signs
- Software stocks show fewer "warning signals" than semiconductors like overvaluation and exposure to geopolitical risks
- Semiconductors have extreme price momentum, are overbought, and valuations are getting expensive
- Microsoft has advantages with a large user base and ability to raise prices, plus integration of AI
- Nvidia stands out in semiconductors with the ability to create its own market and strong growth
- Taiwan Semiconductor is 5 years ahead of Chinese rivals in leading-edge foundry production