3 Semiconductor Stocks to Trade For Big-Time Gains

Stocks go up and stocks go down. But when it comes to the broad and volatile semiconductor sector, variability can even see both happen at the same time. Working to validate that track record are three popular semi stocks indicating investors should be ready to diversify long and short within this important group.

It generally remains a smart approach to follow or invest alongside the broader averages. Over longer time frames and during more meaningful market cycles, most listed companies go along, up or down, with the S&P 500 or other broad-based indices. That’s common knowledge. It’s also why trading with the trend is popular, particularly in rising stock markets like today.

In our estimation the current market environment is inviting investors to trade the market long. But as I’ve recently stressed here at InvestorPlacetrading selectively from the short side is making increasing sense.

Given this observation, as well as semi stocks’ reputation for mixing it up in bull and bear markets, the following analysis takes a dive into two names to buy and one company whose shares are set up for shorting.

  • Advanced Micro Devices (NASDAQ:AMD)
  • Micron Technology (NASDAQ:MU)
  • Xilinx (NASDAQ:XLNX)

It’s also true that within the market, semi stocks have a history of often testing bullish investors wherewithal. Even when the overall investing environment appears healthy, smaller business cycles, competition and near constant product innovation mean today’s hot semiconductor company can quickly become tomorrow’s bear, and vice versa.

Semi Stocks to Trade: Advanced Micro Devices (AMD)

Source: Charts by TradingView

Semi stock Advanced Micro Devices is our first company to trade. And this semiconductor is a buy. The past few years have taken a company on life support with small chance for recovery and transformed it into the S&P 500’s best performing stock. Shares have rocketed from around $2 in 2015 to a current market price near $55 that’s just…

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