Semiconductor and semiconductor capital equipment stocks have been stellar performers lately, a trend we have been a bit slow to recognize. So, I decided to do a deep dive on semis and semiconductor capital equipment stocks to see if there is opportunity left to capture.

Indeed, when I combine the developed and emerging market industry groups of mid/large cap stocks, the best performer over the last three months is the semi/semi-cap equipment industry.

KLSU All Country World Industry Group Performance

Especially in the developed markets, semis have been on a tear, hitting new five-year relative highs compared to global stocks. Semi/semi-cap equipment stocks are the best performing industry group, up over 10% in the last three months.

In the emerging markets, semi/semi-cap equipment is the second best performing industry (only behind technology hardware), up over 4% in the last three months. While relative performance made new highs earlier in the year, the trend has given way lately as pessimism has overcome the emerging markets.