• Home
  • About Us
  • Contact Us
Semiconductor for You
  • Home
  • Semiconductor News
  • Technology
    • Automotive
    • Consumer Electronics
    • IoT
    • Lighting
    • Power Management
    • Wireless
    • Personal Electronics
    • Hardware & Software
    • Research
    • Medical Electronics
    • Embedded Design
    • Aerospace & Defence
    • Artificial Intelligence
  • DIY Projects
  • Market
  • Industries
    • Renesas Electronics
  • Knowledge Base
  • Events
  • Tools
    • Resistor Color Code Calculator
No Result
View All Result
  • Home
  • Semiconductor News
  • Technology
    • Automotive
    • Consumer Electronics
    • IoT
    • Lighting
    • Power Management
    • Wireless
    • Personal Electronics
    • Hardware & Software
    • Research
    • Medical Electronics
    • Embedded Design
    • Aerospace & Defence
    • Artificial Intelligence
  • DIY Projects
  • Market
  • Industries
    • Renesas Electronics
  • Knowledge Base
  • Events
  • Tools
    • Resistor Color Code Calculator
No Result
View All Result
Semiconductor for You
No Result
View All Result
Home Semiconductor News

Semiconductors vs. Software: Which Industry Is Leading the Tech Sector?

Semiconductor For You by Semiconductor For You
July 19, 2017
in Semiconductor News
0

It’s no secret that 2017 has been the year of the tech stock. For better or worse, the most talked about companies on Wall Street, and many of our biggest winners so far, belong to the sector that is responsible for money-making trends like cloud computing, the Internet of Things, and artificial intelligence.

And it’s not just the emerging trends that are helping tech stocks dominate the markets this year. In fact, one of the technology sector’s hottest stories has been Apple’s AAPLupcoming iPhone 8, a device that promises to revolutionize the smartphone market but is, at the end of the day, a familiar consumer electronics product (also read: Apple News: iPhone 8 Delayed ).

ADVERTISEMENT

Nevertheless, excitement throughout the industry is at an all-time high, and the investors, analysts, and consumers of the world all appear to be ready for the intersection of our traditional tech products and the variety of growing new markets out there.

The approach of this intersection puts several key tech industries in the spotlight. For one, we are looking towards the manufacturers of the internal technologies–the semiconductor makers–that promise to power the next generation of devices.

But we also have to look at the software industry, a space that faces a bit of an identity crisis as the global consumer shifts away from the personal computer and towards an ever-connected, mobile-first world.

Interestingly enough, the semiconductor and software industries are among the top performing groups this year, and year-to-date gains in both categories are outpacing those of the S&P 500.

So which tech industry is hotter right now, and as Q2 earnings season rages on, which one should investors target for earnings-based gains? Let’s take a closer look.

Head-to-Head

In an effort to account for the most specific of market conditions, the Zacks Industry Rank breaks things down into much smaller categories. For instance, there are more than 250 total industries within our “Computer and Technology” sector, including about a dozen or so that could be considered to fall into a more general semiconductor industry.

To make this head-to-head comparison as fair as possible, we’ll look at the several of the relevant industry categories today. On the software side,we’ll include data from the “Business – Software Services,” “Internet – Software And Services,” and “Computer – Software” categories. For the semis, we’ll focus on the “Electronics – Semiconductors” and “Semiconductor – General” industries.

If we take a quick average of the gains seen across these software categories, we find that their year-to-date growth comes out to about 26%. This slightly outpaces the 22.8% average growth we’ve seen in our chosen semiconductor industries.

While this certainly doesn’t paint the entire picture, this small snapshot does reveal something interesting: despite a focus on semiconductors, other tech industries, including software, have been doing great this year. This sample of software companies has the edge, but both of these categories are significantly outpacing the S&P 500’s modest 6% growth so far this year.

Earnings Outlook

So far, five of our chosen software companies have reported earnings, and all five have surpassed estimates. There haven’t been any reports released yet in our semiconductors categories, but we’re obviously just getting started on Q2 earnings season.

Overall, the selected semiconductor categories are expected to post an average of 40% earnings growth this fiscal year. This compares quite favorably to the projected EPS growth of 15.4% that we are anticipating from our software industries.

This discrepancy underscores the difference between the makeup of these two industries, with semiconductor manufacturers witnessing strong growth in profits and sales and software providers stuck in a strange middle ground of flat earnings or even losses.

In short, software companies are carrying a surprising amount of momentum into this earnings season, while semiconductor makers continue to have exciting, high-growth prospects.

 

Today’s Stocks from Zacks’ Hottest Strategies

It’s hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 – Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.                                                                                                                                                                                                                                                                                                          And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 – Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we’re willing to share their latest stocks with you without cost or obligation.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.

Content Protection by DMCA.com
Semiconductor For You

Semiconductor For You

Browse by Category

  • Aerospace and Defence
  • Articles
  • Automotive
  • Consumer-Electronics
  • Hardware & Software
  • Interview
  • IoT
  • Knowledge Base
  • Lighting
  • Market
  • personal-electronics
  • Power Management
  • Research
  • Semiconductor Events
  • Semiconductor News
  • Technology
  • Wireless
Semiconductor for You

Semiconductor For You is a resource hub for electronics engineers and industrialist. With its blend of
technology features, news and new product information, Semiconductor For You keeps designers and
managers up to date with the fastest moving industry in the world.

Follow Us

Browse by Category

  • Aerospace and Defence
  • Articles
  • Automotive
  • Consumer-Electronics
  • Hardware & Software
  • Interview
  • IoT
  • Knowledge Base
  • Lighting
  • Market
  • personal-electronics
  • Power Management
  • Research
  • Semiconductor Events
  • Semiconductor News
  • Technology
  • Wireless

Recent News

Littelfuse Completes Acquisition of C&K Switches

Littelfuse Completes Acquisition of C&K Switches

August 11, 2022
40V-Rated Automotive-Compliant Synchronous Buck Converter

40V-Rated Automotive-Compliant Synchronous Buck Converter

August 10, 2022
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2022 Semiconductor For You

No Result
View All Result
  • Home
  • Semiconductor News
  • Technology
    • IoT
    • Wireless
    • Power Management
    • Automotive
    • Hardware & Software
  • Market
  • Knowledge Base
  • Tools
    • Resistor Color Code Calculator

© 2022 Semiconductor For You

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT