Many of the cheap stocks out there in the tech sector can be risky, so ASE's unique business model makes it stand out.ĪDT ( ADT, $6.38) debuted as a public company in 2012 as a spinout from industrial conglomerate Tyco to gain capital efficiencies and focus on its unique business model. It's a lower-margin business, but that means ASE doesn't have to sweat the research side or the marketing of patented semiconductors and therefore offers more stability. That's because ASE is involved in services like packaging and testing circuits and doesn't design specialty semiconductors on its own the way these bigger names do. But recently, ASE has outperformed its peers, as well as the broader S&P 500, with shares that up nearly 41% in the last 12 months. ( ASX, $8.20) is not a big-name, branded chipmaker like an Intel ( INTC) or a Nvidia ( NVDA) that might be the first names that spring to mind for investors. And over the past five years, it has posted a total return (price + dividends) of 171% vs the S&P 500's total return of 66% in the same period. The fund is up more than 40% for the year-to-date.

However, it's important to understand that those troubles emerged after significant long-term growth for the semiconductor industry – and chipmakers have rebounded in fantastic fashion in 2023.Ĭonsider the popular iShares Semiconductor ETF ( SOXX), which holds the biggest names in the sector. Department of Commerce ruling restricted exports to China. Semiconductor stocks took it on the chin a few years back amid supply-chain disruptions.

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