--- title: ClearBridge Investments Looks Beyond FAANGs to Semiconductors description: Clearbridge explores whether it's wise to invest in semiconductor companies that power successful FAANG stocks Facebook, Amazon.com, Apple, Netflix and Google. image: http://www.letsassemble.com/hubfs/blog-files/Clearbridge-Market-Commentary.png --- [![Assembly Wealth](https://www.letsassemble.com/hs-fs/hubfs/Assembly/logos/Assembly-Wealth-Logo-Orange-500px.png?width=300&height=70&name=Assembly-Wealth-Logo-Orange-500px.png "Assembly Wealth")](https://www.letsassemble.com/) The Money Manager People TM [800-541-7774](tel:+18005417774) [![RESEARCH MONEY MANAGERS](https://no-cache.hubspot.com/cta/default/10700/7ecbcb66-3fbb-41e3-b219-c24fb3c769c5.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/7ecbcb66-3fbb-41e3-b219-c24fb3c769c5) [![Client Center](https://no-cache.hubspot.com/cta/default/10700/8691dcb4-caa3-42c2-a810-77b59f461fd2.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/8691dcb4-caa3-42c2-a810-77b59f461fd2) [Home](https://www.letsassemble.com/) WrapManager's Wealth Management Blog When life changes, we can help you thoughtfully respond. [< Back to read another post](https://www.letsassemble.com/wealth-management-blog) # ClearBridge Investments Looks Beyond FAANGs to Semiconductors Posted by [ WrapManager's Investment Policy Committee](https://www.letsassemble.com/wealth-management-blog/author/wrapmanagers-investment-policy-committee) September 28, 2017 - [Tweet](https://twitter.com/share) [![Clearbridge-Investments-Market-Commentary.png](https://www.letsassemble.com/hs-fs/hubfs/MM_Logo_Images/Clearbridge-Investments-Market-Commentary.png?width=404&name=Clearbridge-Investments-Market-Commentary.png "Clearbridge-Investments-Market-Commentary.png")](https://www.letsassemble.com/hubfs/MM_Commentary_PDFs/ClearBridge-Investments-Sept%202017.pdf) ## *Tremendous growth in software functionality has only been enabled by tremendous growth in semiconductor performance...* U.S. equity market returns over the last several years has been driven by the performance of a select group of large cap information technology and Internet stocks that have come to be known as the FAANGs, for Facebook, Amazon.com, Apple, Netflix and Google (now known as Alphabet). Our investment teams have shared concerns about the crowding effect that the outlier performance of this group has created. While these companies possess unique business models and maintain strong long-term growth potential, we believe more attractive current opportunities may be found in looking beyond the FAANGs to other areas of technology, such as semiconductors. Read an excerpt of the complete commentary below, or [download the entire investment commentary as a PDF](https://www.letsassemble.com/hubfs/MM_Commentary_PDFs/ClearBridge-Investments-Sept%202017.pdf). ## Key Points: - **We estimate that the overall semiconductor market will grow 17% in 2017**, well above its long-term average of 3%–-4%. While we share in the excitement of multiple new technology trends that can drive excess growth (artificial intelligence, the Internet-of-things, or self-driving cars), they still represent a small part of a very large and mature industry. - **We are cautious in our overall view of the semiconductor cycle**, although we believe there are several semiconductor stocks that have a combination of defensive, counter-cyclical, and secular growth opportunities that will allow them to outperform even in the event of a cyclical correction in the space. - **We also see some growth pockets that we believe can be counter cyclical**. For example, Apple is expected to launch three iPhone models in the next few months, which we believe will drive an upgrade cycle across the Apple installed base. Broadcom, a supplier of RF filters in the iPhone, is expected to have 40% more content in the new models compared to the iPhone 7/7+, which should allow the company to sustain growth even in the face of an industry downturn. [Download the complete commentary](https://www.letsassemble.com/hubfs/MM_Commentary_PDFs/ClearBridge-Investments-Sept%202017.pdf) or learn why [Nuveen believes the second-strongest bull market in history will continue](https://www.wrapmanager.com/wealth-management-blog/nuveen-support-for-bull-market-september-2017). To learn more about ClearBridge Investments and other [Money Managers](http://www.wrapmanager.com/money-manager-research), give us a call at [1-800-541-7774](tel:+18005417774) or [contact us here](https://www.wrapmanager.com/contact) to speak with a knowledgeable Investor Consultant. ![pdficon.gif](http://www.wrapmanager.com/hs-fs/hub/10700/file-2346359955-gif/blog-files/pdficon.gif "pdficon.gif") [Download ClearBridge Investment's full commentary here](https://www.letsassemble.com/hubfs/MM_Commentary_PDFs/ClearBridge-Investments-Sept%202017.pdf) ![icon_report.gif](http://www.wrapmanager.com/hs-fs/hub/10700/file-2346359965-gif/blog-files/icon_report.gif "icon_report.gif") [Request free research reports from ClearBridge Investments](http://www.wrapmanager.com/money-manager-research/clearbridge_investments) [Economic/Market Outlook](https://www.letsassemble.com/wealth-management-blog/topic/economicmarket-outlook) [ClearBridge Investments LLC](https://www.letsassemble.com/wealth-management-blog/topic/clearbridge-investments-llc) [![get money manager picks](https://no-cache.hubspot.com/cta/default/10700/d72d98dd-a24b-41d8-9276-e1648f3b09d3.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/d72d98dd-a24b-41d8-9276-e1648f3b09d3) ### Subscribe to Updates [Subscribe to RSS Feed](https://www.letsassemble.com/wealth-management-blog/rss.xml) [![New Call-to-action](https://no-cache.hubspot.com/cta/default/10700/ffe2a394-957b-481b-9f80-4ef176bd6aaf.png)](https://cta-redirect.hubspot.com/cta/redirect/10700/ffe2a394-957b-481b-9f80-4ef176bd6aaf) ### Most Recently Published ### Blog Authors [![Gabriel Burczyk](http://www.wrapmanager.com/hs-fs/hub/10700/file-2347381761-jpg/Athors_Avatars/Gabe-avatar.jpg "Gabriel Burczyk")](http://www.wrapmanager.com/wealth-management-blog/author/gabriel-burczyk) [**Gabriel Burczyk,**](http://www.wrapmanager.com/wealth-management-blog/author/gabriel-burczyk) [Founder & CEO](http://www.wrapmanager.com/wealth-management-blog/author/gabriel-burczyk) [![Valerie De Vol](http://www.wrapmanager.com/hs-fs/hub/10700/file-2457588837-jpg/Athors_Avatars/Valerie-De-Vol-avatar.jpg "Valerie De Vol")](http://www.wrapmanager.com/wealth-management-blog/author/valerie-de-vol) [**Valerie De Vol, **IACCP® Chief Operating Officer](http://www.wrapmanager.com/wealth-management-blog/author/valerie-de-vol) [![Seton-avatar.jpg](http://www.wrapmanager.com/hs-fs/hub/10700/file-2344519198-jpg/Athors_Avatars/Seton-avatar.jpg "Seton-avatar.jpg")](http://www.wrapmanager.com/wealth-management-blog/author/seton-mcandrews) [**Seton McAndrews, **CFP® ](http://www.wrapmanager.com/wealth-management-blog/author/seton-mcandrews)[Vice President - Investments](http://www.wrapmanager.com/wealth-management-blog/author/seton-mcandrews) [![Doug Hutchinson](http://www.wrapmanager.com/hs-fs/hub/10700/file-2347381751-jpg/Athors_Avatars/Doug-avatar.jpg "Doug Hutchinson")](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson) **[Doug Hutchinson,](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson) **[CFA® ](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson)[Director of Research and Trading](http://www.wrapmanager.com/wealth-management-blog/author/doug-hutchinson) ![Katie - square.png](https://www.wrapmanager.com/hubfs/Katie%20-%20square.png "Katie - square.png") [**Katie O'Connor **Director of Client Services](https://www.wrapmanager.com/wealth-management-advisors/katie-oconnor) **Important Disclosure Concerning WrapManager Blogs** Blogs found at this site have been created or supported by WrapManager. The information provided in a blog post prepared by WrapManager or an associated person of WrapManager is generally limited to financial and economic issues, but may include a discussion of general interest items. The views and opinions expressed on this blog are purely the blog authors, and not necessarily those of WrapManager, Inc. Certain blog posts include information pertaining to WrapManager’s investment advisory services and the products and services of unaffiliated money managers. Such information is provided for information purposes only. Accordingly, information provided in a blog should not be construed by any consumer and/or prospective client as a solicitation to effect or attempt to effect transactions in securities or the rendering of personalized investment advice. Any subsequent, direct communication by WrapManager with a prospective client shall be conducted by a representative of WrapManager. Moreover, no client or prospective client should assume content contained on the website serves as a substitute for personalized advice from WrapManager. Different types of investments involve varying degrees of risk, and there can be no assurance that any investment, portfolio or money manager referred to within the blog will be suitable for your individual situation and risk tolerance or will be profitable. WrapManager recommends that you retain a financial professional to provide you with specific guidance regarding your financial situation before investing. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. Although the information included in the WrapManager, Inc. website and blog has been obtained from sources WrapManager believes to be reliable, we do not guarantee its accuracy and information may be subject to change without notice. This website should not be regarded as a complete analysis of the subjects discussed. Information on this site should not be relied upon as a substitute for legal, tax or accounting advice by a professional in your local jurisdiction. Comments made by third parties are subject to moderation by WrapManager and may not appear on this blog until they have been deemed appropriate for posting. Also, due to the volume of comments received, not all comments will be posted. WrapManager does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party website linked to WrapManager's web site or incorporated within a blog post. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.     ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "WrapManager's Investment Policy Committee", "url" : "https://www.letsassemble.com/wealth-management-blog/author/wrapmanagers-investment-policy-committee" }, "datePublished" : "2017-09-28T12:50:15.000Z", "headline" : "ClearBridge Investments Looks Beyond FAANGs to Semiconductors", "image" : [ "//www.letsassemble.com/hubfs/blog-files/Clearbridge-Market-Commentary.png" ], "mainEntityOfPage" : { "@id" : "https://www.letsassemble.com/wealth-management-blog/clearbridge-investing-in-faangs-semiconductors", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://www.letsassemble.com/hubfs/Assembly/logos/Assembly-Wealth-Logo-Orange-500px.png" }, "name" : "Assembly" } } ```