Portfolio Selection of Semiconductor companies in the NASDAQ Market during COVID19 PANDEMIC

As we embrace the tech age and fast-phase innovation of technologies, this could indicate that the demand for semiconductor industry products will grow and expand its market in the near future. This paper explores and analyzes the 500 dynamical historical returns of Semiconductor Companies with positive earnings per share growth for the past five years in the NASDAQ market. This study aims to examine semiconductor companies' portfolios if they can outperform the benchmark market, which is the NASDAQ. The Safety-first model was utilized to back-test the portfolio and market's performance. 120 days before and during the COVID19 pandemic (September 18, 2019 - August 28, 2020, with parameters of RL = -5% as acceptable investment loss and 5% as accepted loss probability of investment or = 5% as the maximum acceptable probability of investment loss. Also, the budget constraint is 50,000 US dollars. The basic portfolio selection framework has 3 parts. Determining the estimates on the possible performances of the semiconductor companies in the investment pool. Second, considering the likelihood of these estimates. In this study, SP/A theory was utilized with fear and hope trade-off factor of {0, 0.5, 1} such that as it approaches 1 the investor become more optimistic and hopeful. Lastly, selecting portfolio investment based on the results.