Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

With 2 Big Chip Stocks Offering Value, These ETFs Are Worth a Look

BY | ETF Database
5:37 am ET 09/24/26 | 19 VIEWS
Broadly speaking, semiconductor equities are considered growth stocks. But there are occasions when some members of the group, including some bellwether names, serve up value.Value may be in the eye of the beholder, but some market observers make the case that ASML Holding NV (ASML) is an example of semiconductor that’s currently undervalued. That could open the door to opportunity with the Direxion Daily ASML Bull 2X ETF (ASMU). As its name implies, ASMU, which came to market earlier this year, is a leveraged ETF. So it’s not a buy-and-hold instrument as are proper value stocks. However, this ETF, which attempts to deliver 200% of the daily returns of the Dutch chip equipment giant, could be a high-octane avenue for short-term traders looking to capitalize on the stock’s value proposition. “While ASML sells equipment at an attractive gross margin, it then keeps generating recurring service revenue for decades. AI is driving strong semiconductor demand, which means more demand for ASML’s machines, too,” noted Morningstar’s Susan Dziubinski. “The company’s economic moat is supported by three moat sources, including intangible assets, cost advantages, and switching costs. We assign the company’s ADRs a $2,050 fair value estimate.”Time to Talk TaiwanTaiwan Semiconductor Manufacturing (TSM) is the largest semiconductor foundry operator. It’s another example of chip value play, though that’s rarely the case. That status could be appealing to traders considering the Direxion Daily TSM Bull 2X Shares (TSMX ). That ETF seeks daily returns corresponding with 200% of Taiwan Semiconductor shares. TSMX turns two years old next month. It’s a prime example of single-stock ETF that may be attractive to tactical, risk-tolerant traders looking to take short-term approaches to capitalizing on value opportunities. “The company’s wide moat stems from economies of scale and premium pricing that’s justified by its cutting-edge process technologies,” added Dziubinski. “In the face of strong AI demand, the company recently raised its 2026 capital expenditure spending to $62 billion at the midpoint and increased its full-year revenue growth target by more than 40% in US dollars. We expect the company to hike prices in 2027 due to higher raw material costs and tight supply. We think Taiwan Semi’s ADRs are worth $534.” For traders looking for events that could move ASMU and TSMX, ASML’s next earnings report arrives on October 14, while Taiwan Semiconductor is scheduled to report the next day. For more news, information, and analysis, visit the Leveraged & Inverse Content Hub.

More Commentary

Got Interest Rate Worries? Consider Structured Credit
BY | ETF Database
7:57 am ET 09/24/26 | 6 VIEWS
Long Bonds vs. Derivative Income: The Income Dilemma
BY | ETF Database
6:14 am ET 09/24/26 | 12 VIEWS
Invesco Taps BlackRock's Tim Clavin for ETF Capital Markets
BY | ETF Database
9:00 am ET 09/24/26 | 0 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.