The semiconductor stocks set to win as the cycle turns

From reading the headlines around artificial intelligence (AI), investors could easily be mistaken for thinking the entirety of the semiconductor industry is in good health. In fact, across the wider market, demand is struggling to recover after its post-pandemic slump.

During the Covid-19 pandemic, there was unprecedented demand for consumer goods, including phones, laptops and cars. Initially, this led to shortages, but then the semiconductor industry caught up, creating an oversupply.

Slow recovery