There are two kinds of semiconductors. The ones that go into cellphones and the ones that go into everything else.
Today's still one more beat-down for the former and it is all because of another story about how Apple (AAPL) is going to cut iPhone production pretty drastically, as much as 30%. (Apple is part of TheStreet's Action Alerts PLUS portfolio.)
I have favored every other semi except those that go into cellphones because, like the "peak auto" theory that is making the rounds, the "peak cellphone" theory is also now etched in stone.
I wish I could have a thesis for making a stand on Avago (AVGO), Qorvo (QRVO), Skyworks (SWKS) and NXP Semiconductor (NXPI), but they are so inextricably linked to the fortunes of Apple that I can't risk it. (Qorvo is part of TheStreet's Trifecta Stocks portfolio. Skyworks is part of the Growth Seeker portfolio.)
That said, Apple itself is far cheaper even as it is regarded as the ultimate "peak" play.
At this point, as I have said many times, Apple is hated but still overowned. I can't countenance selling it, but I recognize that until the actual cuts are made by the company, if they are to be made, there will be more pain.
My fave semis? Intel (INTC) and Nvidia (NVDA): linked to entirely different parts of the food chain and not susceptible to the "peak" cellphone story.
It's unfortunate: Avago, NXPI, Qorvo and Skyworks are great companies. But, again, they have not yet built in the estimate cuts that everyone expects, and until we get them, or they are denied by the companies themselves, it seems that the only forecast I can offer is pain.