Chipmaker Stocks Are Up

Shares of chip and semiconductor stocks, including AMD ($AMD@US), were trading higher at day’s end yesterday. Chipmakers have been clear winners in the pandemic era, and the momentum in the semiconductor space is set to remain strong going into 2022, according to a report released Monday by trade credit insurer Euler Hermes. Semiconductor sales are expected to grow by another 9% and cross $600 billion for the first time in 2022. However, Euler Hermes warned that chipmakers could face risks from demand normalization after a two-year boom in hardware sales and from adverse events caused by climate change. Shares of several companies in the broader technology sector were also trading higher last week on a continued rebound after the recent omicron-driven selloff. AMD designs microprocessors for the computer and consumer electronics industries. The majority of the firm's sales are in the personal computer and data center markets via CPUs and GPUs. AMD recently announced that it will purchase $2.1 billion worth of wafers from its chip-producing spin-off factory, GlobalFoundries ($GFS@US), between 2022 and 2025. The number has increased from the 1.6 billion AMD originally planned to purchase.