THE tech stock rally this month, which was particularly strong last week, should not come as a surprise to investors as many of the counters have hit all-time highs since last year’s June-to-August market rally.
The spectacular share price performances of these semiconductor and semiconductor-related stocks have been overshadowed by the rubber glove mania last year amid the Covid-19 pandemic. Until lately, that is.
One major factor fuelling the current rally is the global chip shortage, which has pushed up the prices of certain semiconductors and caused automotive firms to halt production.
But it appears that the shortage has become a boon to semiconductor players, including Malaysian companies, as lockdowns and travel restrictions are prompting consumers to buy more smartphones, smart devices, smart TVs, computers and laptops.