The PHLX Semiconductor Sector index hit an all-time high today (1,237.63), as the market continues to climb. The index is up 5.2% month-to-date and 36% year-to-date, compared to 2% and 14.8% respectively for the S&P 500. The Semiconductor industry, the backbone and future of the tech-sector, continues to outperform the market. Every year more chips are required to power an increasing number of devices, while the breadth of end users has broadened to include themes such as AI, cryptocurrencies, autos, data analytics and communications.
Although the market continues to give investors who are long shares of semiconductor companies reason to celebrate, short sellers have increased their bets recently. S3 Partners calculates the real time dollars at risk on the short side to be $30 billion currently, an increase of $6.5 billion since the beginning of the year (on the PHLX Semiconductor Sector index constituents). Since Jan 1st alone, S3 calculates that short sellers are down $8.2 billion in year-to-date mark- to- market losses on their short positions.
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