Semiconductor stocks have taken a beating in 2022. This was driven by supply chain disruptions and demand concerns. The immediate term for semiconductor stocks will likely continue to be volatile, but there are strong tailwinds for the long term as various countries ramp up their domestic production of microchips.
Take the case of Navitas Semiconductor Corp (NASDAQ:NVTS). The company develops semiconductor power chips that use gallium nitride (GaN) instead of the current silicon material. Research shows that the smaller GaN chips generate higher power output and speed, as well as charge more quickly.
This could be game-changing for the semiconductor industry. The super-high speed of GaN chips will likely drive the adoption of the technology.
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