As the demand for semiconductor chips continues to rise and governments incentivize companies to increase production, the industry is expected to grow significantly. So, we think it could be wise to bet on quality small-cap semiconductor stocks Camtek (NASDAQ:CAMT), Axcelis (ACLS), and SMART Global (SGH). They are each trading near their fresh highs but still have plenty of upside to deliver.The ongoing semiconductor chip shortage has affected several industries, primarily forcing electronics and automotive manufacturers to cut production. However, according to a Vox report, ‘The chip shortage has a silver lining.’ Investors’ interest in the semiconductor industry is evident from the SPDR S&P Semiconductor ETF’s (XSD) 22.7% gains over the past month.
The Biden administration has been taking steps to incentivize domestic production of semiconductor chips amid the global supply chain crisis. Moreover, the growing demand for chips across most industries is expected to help the industry grow. According to an International Data Corporation report, the semiconductor market is expected to grow 17.3% in 2021.
Against this backdrop, we think it could be wise to bet on quality small-cap semiconductor stocks Camtek Ltd . (CAMT), Axcelis Technologies, Inc. (NASDAQ:ACLS), and SMART Global Holdings, Inc. (SGH). They are hovering near their new highs but still have plenty of upsides left.