Is It Worth Adding These 2 Semiconductor Stocks to Your Portfolio This Summer?

$Direxion Daily Semiconductor Bull 3x Shares ETF(SOXL.US)$ $PHLX Semiconductor Index(.SOX.US)$ High demand, policy support, and corporate investments to ramp up production helped the semiconductor industry register an 18% rise in sales globally in May 2022. In the Americas, sales were up 36.9% year-over-year.

Though the Russia-Ukraine conflict and tensions related to Taiwan between China and the United States continue to affect the supply chain, the growing demand and development of advanced chips with lower latency and power consumption should allow the industry to stay afloat.

Investors’ interest in this space is evident from $Spdr Series Trust Spdr S&P Semiconductor Etf(XSD.US)$ 7.4% gains over the past week versus $SPDR S&P 500 ETF(SPY.US)$ 2% returns. The global semiconductor market is expected to grow at a 9.2% CAGR to $893.10 billion by 2029.

Wall Street analysts expect quality chip stocks $NVIDIA(NVDA.US)$ and $Lattice Semiconductor(LSCC.US)$ to surge significantly in the upcoming months. Therefore, these stocks could be solid additions to your watchlist.