Electronics has seen a surge in demand with the advent of artificial intelligence, “smart” homes and the connectivity associated with the “Internet of Things”.
This trend has provided a fillip to the industry and resulted in the enlargement of the pie for all players.
Needless to say, investors in the electronic component sector have seen healthy capital gains and surging dividends due to this increased business demand.
However, the sector is also known for being notoriously cyclical and demand may rise or fall drastically, catching investors by surprise.
Is there still room for the industry to enjoy further prosperity? Or are we seeing a peak in the industry’s business cycle?
Good results all around
As we delve further into electronic component stocks’ earnings, it seems that the companies are reporting good numbers all around.
Micro-Mechanics (Holdings) Ltd (SGX: 5DD), a designer and manufacturer of tools and parts used in the semiconductor industry,...