The demand for chips was already high due to the rollout of 5G. Still, demand skyrocketed as millions of people were forced to stay at home due to the pandemic. Suddenly, sales of laptops and gaming consoles soared. And now that automobile manufacturers have reopened their plants, the demand for semiconductors has exploded with not enough chips to go around.
These shortages reflect a tight supply, but not a lack of demand, which means the chip rally should continue into summer. As the market has been retreating in recent days, it provides an opportunity to pick up chip stocks on the dip. That is why I am recommending two Buy-rated semiconductors that should see their shares rise in the months ahead: Intel Corp . (NASDAQ:INTC) and Broadcom Inc. (NASDAQ:AVGO).