‘Fundamental bottom’ is coming for chips, and this stock could be the biggest winner, analyst says
After a semiconductor shortage flipped into a glut in 2022, chip stocks are headed for a strong entry point and will lead the broader market in the new year, with Nvidia Corp. the best pick among them, an analyst wrote Thursday.
Evercore ISI analyst C.J. Muse said he expects the beleaguered chip sector to turn around with a soft landing, having bottomed out in mid-October, when the SOX index hit 2,162, its lowest level since mid-September 2020. A “fundamental bottom,” however, should play out over the next three to six months, he wrote, “with a clear path to soft-landing in sight and 1-2 more cuts.”
Semiconductor stocks, however, lagged behind the broader market on a rough day Thursday, as the PHLX Semiconductor Index SOX dropped 4%, compared with a 2.9% decline on the S&P 500 index SPX and a 3.4% fall on the tech-heavy Nasdaq Composite Index COMP . Nvidia, Marvel, and ASML shares fell about 5%, while Analog Devices, Wolfspeed and Broadcom were all down around 3%.
“Tactically,” Muse also likes chip-equipment makers Applied Materials Inc. AMAT and Lam Research Inc. LRCX into the first quarter of 2023 on positive estimate revisions. Muse has outperform ratings on both stocks.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Delta lifts its 2023 guidance as travel stock takes offDelta Air Lines is lifting its 2023 guidance as holiday travel picks up and travelers return to the skies
Weiterlesen »
Here are some of Credit Suisse's top stock picks heading into 2023Credit Suisse has refreshed its list of top U.S. stock picks.
Weiterlesen »
Charter stock falls after 2023 capex forecast comes in above Wall Street expectationsShares of Charter Communications Inc. undefined were off more than 5% in after-hours trading Tuesday after the company held an investor day, which contained...
Weiterlesen »
AMD, Nike, Zillow among UBS stock picks with the 'highest conviction' for 2023UBS analysts are out with their 2023 stock picks, which include chipmaker Advanced Micro Devices, retailer Target, and footwear powerhouse Nike. Others among the top 23 bullish picks include Allstate, Charles Schwab, Gitlab, and Yum! Brands.
Weiterlesen »
Cramer picks favorite down-and-out stock for 2023 and calls a bottom on another nameThere are two stocks in our portfolio that are in rough shape. But Jim Cramer said during the Club's December 'Monthly Meeting' that he has hope for both.
Weiterlesen »
Stimulus update 2023: Here are six states sending payments worth up to $1,500 next yearAnyone living in these six states may be receiving some extra pocket cash sometime next year.
Weiterlesen »