Intel, like Texas Instruments and Taiwan Semiconductor before it, beat earnings expectations but disappointed the market with its forecast. The world's largest microchip makers are ramping up production, but it could take a while to catch up with the demand.

The key question at the moment is how long will the chip shortage last. Some day soon an executive will answer that with, "how long is a piece of string?" In fact, that was pretty much how Texas Instruments finance chief Rafael Lizardi answered earlier this week.

Taiwan Semi says the shortage may last until next year, and Intel says it could stretch into 2023, but both say the crisis will ease in the months ahead.

Despite the global shortage leading to strong demand and surging revenues, semiconductor stocks haven't exactly gone into orbit this year. The PHLX Semiconductor index has risen 16.6% year-to-date, which certainly is a strong performance but not significantly outperforming the broader Nasdaq Composite, which has gained 14%.

Perhaps the forward-looking markets suspect the peak of the crisis is coming, or has even passed. With expectations sky high and talk of the crisis easing in the months ahead, chip stocks come with risks.

There may be another way for investors. An easing of the crisis later this year may fuel a boost for auto stocks. French car parts maker Valeo said the shortage had peaked and would ease in the second half of 2021. The stock soared 7% in early European trading, also lifting Volkswagen, Renault and Daimler.

-- Callum Keown