Semiconductor stocks have suffered all year – as weak chip demand and easing supply chain disruptions have plagued the sector at the height of the Covid pandemic. The iShares Semiconductor ETF is down about 44% so far – a bloodbath even by this year’s bear market standards. However, the massive sell-off in chip stocks this year is also an opportunity for bargain hunters, especially those with a long-term view of the importance of chips to trends. world like 5G, electrification and artificial intelligence. Hedge fund manager David Neuhauser said he believes Intel now looks “really attractive,” with the company having lost a significant portion of its market value so far this year. The Livermore Partners founder and chief investment officer said on CNBC’s “Street Signs Asia” on Monday that Intel has “a lot of value” and looks “really attractive” with its stock price down 50% compared to with high level. Furthermore, the company pays a dividend of more than 5%, so investors are “paying to wait” while the stock price recovers, he added. “It’s also a company with a very strong footprint in the United States and beyond. So if there’s one stock I’m going to look at, it’s Intel today,” Neuhauser said. But investors hoping for a quick recovery in Intel’s stock price will be disappointed, he said. He urged investors to take a longer-term view of their investments amid ongoing geopolitical tensions around the world. “If your time frame is like a decade from here, obviously, there are some great things you can buy as an investor, and as we’ve described, things like Intel or even Nvidia in their place, but if you’re really thinking about this followed by a period of six months or a year, I think without the dividend yield, it would be very difficult to think that you will get a substantial return on its investment today,” Neuhauser said. Longer-Term Challenges The Besieged Region had to withdraw the Chip Manufacturing and Science Act – a bill that included more than $52 billion in funding for US chipmakers, as well as billions of credits. tax to encourage investment in semiconductor manufacturing. But a flurry of new export controls introduced earlier this month to prevent China from buying or making chips and components vital for supercomputers sent chipmakers’ shares once again plunging. slope. Against the backdrop of these macro difficulties and the growing competition in the sector, chip companies are looking to strengthen their position. For example, US chipmaker Broadcom is reportedly seeking early European Union antitrust approval of its proposed $61 billion purchase of cloud computing company VMware, according to a report. media reports. If completed, the deal announced in May would be one of the biggest tech acquisitions of all time. “I think the news that you’re seeing in this sector is something that’s going to be very upsetting because you’re seeing this export ban. And ultimately, that’s going to put a lot of these companies out of business in the coming months. “It’s going to be tough going forward, and if things do exist in their current format, you could start to see further consolidation happening as companies try to increase profits even more through them,” Neuhauser said. over scale, more acquisitions like VMware’s are still around. It was one he added.