Semi-conductor

Screening Filters

1. Industry: Semiconductors & Semiconductor Equipment

   • Purpose: Focus exclusively on companies directly in the semiconductor space.
   • Rationale: Your question is specifically about the semiconductor sector. This filter ensures we’re not pulling in “AI” or tech names that are adjacent (software, cloud, etc.) but only actual chip makers and the companies that design/manufacture equipment used to produce chips.

2. Region: United States

   • Purpose: Limit results to U.S.-based semiconductor companies.
   • Rationale: U.S. semiconductors are among the most followed and regulated, with relatively better disclosure, liquidity, and analyst coverage. This makes it easier to do meaningful sector analysis, compare fundamentals, and interpret trends. It also keeps the universe consistent in terms of regulation, accounting standards, and macro drivers (Fed, U.S. economy).

3. Exchange Listing: XNAS, XNYS, XASE (Nasdaq, NYSE, NYSE American)

   • Purpose: Include only major, reputable U.S. exchanges.
   • Rationale: These exchanges host the bulk of established and actively traded semiconductor companies. Excluding OTC and foreign exchanges reduces the chance of illiquid or low-disclosure names muddying the sector picture.

4. Market Cap: min 2,000,000,000 (>$2B)

   • Purpose: Focus on mid- to large-cap semiconductor companies.
   • Rationale: When analyzing a sector, larger companies tend to be:
     • More representative of major industry trends (demand cycles, pricing power, capex, etc.).
     • Less distorted by extreme volatility or single-product risk.
       This filter removes tiny, speculative names so the analysis reflects the core of the industry rather than fringe microcaps.

5. Revenue 5-Year CAGR: min 10 (≥10% annual growth)

   • Purpose: Select companies with solid, sustained top-line growth.
   • Rationale: Semiconductors are a growth-driven sector (AI, cloud, automotive, 5G, IoT). A ≥10% 5-year revenue CAGR ensures:
     • The companies are benefiting from structural demand trends.
     • You’re looking at firms that are not only part of the sector but are actually growing with it, making them more relevant to any forward-looking “sector information” or outlook.

6. P/E (TTM): min 10, max 40

   • Purpose: Keep valuations within a “normal-ish” band.
   • Rationale:
     • Lower bound (10): Filters out extremely distressed or unusual cases that might have abnormally low P/Es due to one-off factors or market pessimism that don’t represent the sector’s typical valuation.
     • Upper bound (40): Excludes extremely speculative or bubble-like valuations, which can skew perception of the sector’s typical pricing and risk/reward.
       This narrows your view to semis trading at valuations that are relatively reasonable while still reflecting growth.

7. Moving Average Relationship: PriceAboveMA20

   • Purpose: Focus on stocks currently trading above their 20-day moving average (short-term uptrend or at least not in a clear short-term downtrend).
   • Rationale:
     • For sector-level analysis, it’s helpful to see which names are showing positive or stable recent price action—these often better reflect current market sentiment about the sector.
     • It avoids names that are significantly breaking down technically, which might be driven by idiosyncratic issues rather than general sector trends.

Why Results Match Your Semiconductor-Sector Question

• The industry, region, and exchange filters ensure you’re looking squarely at U.S.-listed semiconductor and semiconductor equipment leaders, which are central to understanding the sector.
• The market cap and revenue growth filters focus on established, growing players that are actually driving and reflecting the major trends in semiconductors (AI chips, data centers, autos, etc.).
• The P/E range keeps the sample to reasonably valued growth names, giving a more realistic picture of sector valuation and risk, instead of extremes.
• The PriceAboveMA20 condition highlights companies the market currently treats relatively favorably, giving a cleaner signal of how investors are pricing the sector’s fundamentals right now.

Put together, these filters yield a focused list of representative, growing, reasonably valued U.S. semiconductor companies, which is a practical foundation for analyzing and discussing the semiconductor sector as a whole.