Celina Jade
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Celina Jade in Markets at a glance,

Chip stocks have easily beaten the broader market, and some still offer incredible values

Semiconductor stocks have been in a sweet spot, as chip companies are taking advantage of industries transforming themselves in a new technological age.

The semiconductor industry, represented by the PHLX Semiconductor Index SOX, +0.65%  has easily outperformed the broader market.

Still, there’s plenty of value in the industry if you know where to look.

Here are a few charts to illustrate this point: the PHLX Semiconductor Index versus the S&P 500 Index over the past five years:

FactSet

You can see that the semiconductors were more volatile than the S&P 500 during the market pullbacks in October and November 2014, the summer of 2015, early 2016 and June 2017. But the overall five-year result speaks for itself. The semiconductors roared ahead of the market. It paid for investors to be patient and ride out the declines.

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