Macro Minutes: Top-Down Approach to Semiconductors

In our latest Macro Minutes video, Senior Securities Research Analyst YoungRo Yoon applies our top-down investment process to the semiconductor industry. He describes the cyclical nature of the industry, discusses the various categories of semiconductors, and explains our current overweight positioning.

Key Points

• When applying our top-down investment process to the semiconductor industry, we first look at the cycle to determine timing, then funnel it down by analyzing the different categories of chips.
• We believe there is more room left in the upcycle, however the semiconductor industry is highly cyclical with performance highly depending on the up and downcycle.
• Though we are currently overweight to the semiconductor industry, we are aware the end of upcycle is coming and will adjust our positioning accordingly when that happens.