Semiconductor, Hardware Stocks Set for Long Run Says Deltec CIO

Investors should load up on semiconductor and hardware stocks because technology will lead U.S. productivity growth in the coming years, said Atul Lele, Chief Investment Officer for Deltec International Group. Lele added that the valuations for semiconductor stocks like Intel and Micron are reasonable considering the potential opportunity for growth. He said business investment in the U.S. is low but rising and Microsoft is directly exposed to the replacement cycle while Apple will benefit from the new product cycle. Finally, Lele said he Chinese internet stocks like Alibaba offer great exposure to the rising consumer class, yet they are too pricey and volatile.