Relief is also not yet in sight. Our equity research analysts expect sequential improvements in chip availability in mid-2022, which should ease supply bottlenecks, and a possible return to normal by the end of next year. In the meantime, semiconductor stocks have held up reasonably well. Last week they traded to a five-month high relative to the S&P 500 (on an equal-weighted basis).
Looking ahead, we remain structurally positive on semiconductor names and see particular opportunities in companies tied to long-term megatrends in artificial intelligence, 5G, data centers, video games and autos, including electric vehicles.
Saira Malik is head of global equities at Nuveen.