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Chip supply has fallen behind demand.
“Tech stocks have had an up and down ride ever since Pfizer announced the efficacy of its vaccine back in November,” a Forbes article noted. “Coupled with inflation fears, rising bond yields, and potential tax hikes, the outlook for tech is cloudy. Not to mention, we have a global chip shortage that could prove to be a significant challenge for high-growth stocks to meet lofty production goals.”
Nonetheless, there’s no denying the need for tech. Whether it’s in everyday life or as a portfolio play, tech is where it’s at, and semiconductors are the way to get to it.