Investor sentiment is towards semiconductor firms is improving as short interest just hit a new 52 week low for 30 semiconductor firms which make up the PHLX SOX Semiconductor Sector index, according to Markit.

As they produce components that power tech goods, these firms have often been looked to as a bellwether for the technology industry at large.

“Any shift in sentiments should be read as a view on the tech industry in general,” said Simon Colvin, analyst at Markit. “This wave of short covering comes at the heels of a surge in shorting activity during the third quarter of last year after falling PC shipments and soft product launches saw the index lose 6% of its value in August.”

Momentum coming into this month is much stronger as the PHLX index is up by over 3.5%, while the Semiconductor Industry Association, the industry body, has reported a strong 10.8% rise in industry revenue over June to mark a new record for the industry.

Most (26) of the 30 firms in the PHLX constituents have seen their shares increase since the start of the year.

Teradyne has led the firms as its shares out on loan more than halved, taking its short interest to a new yearly low after a string of better than expected results.

Xiling and Microchip have also seen short covering in the last eight months.

“As ever there are exceptions to the rule, with Cree seeing short sellers circle after missing two straight quarterly revenue expectations. Demand to borrow shares of the firm is up by nearly a quarter after its shares have retreated by 27% since the start of the year,” said Colvin.