Information Technology – Semiconductors

Because of the nature of their business, they do not try to anticipate economic cycles and then amend their production capacities but rather take them on, plein vanilla. This in turn increases the share price volatility; Yet, because fabs and semiconductor companies are traditionally early cyclicals, when markets are expected to turn, the recovery phase of semiconductors is strong and fast. In general, semiconductor stocks anticipate the market recovery by about six months.