Wall Street places more bets on chip sector's soft landing in 2023
More on Wall Street are betting on a soft landing for semiconductor stocks that lagged the broader market in 2022.
More on Wall Street are betting on a soft landing for semiconductor stocks that lagged the broader market in 2022 as a two-year, pandemic-driven chip shortage suddenly flipped into a glut.
BofA Securities chip analyst Vivek Arya said Friday that a “soft landing could drive hard takeoff in chips stocks,” although he expects a bumpy start to 2023 “as stocks digest Q4 gains and are exposed to softer consumer demand.”
That follows Evercore ISI analyst C.J. Muse on Thursday, who listed Nvidia Corp.
NVDA,
That said, BofA’s Arya listed his top picks as Nvidia, and also had top picks that agreed with Muse with analog chip maker Analog Devices Inc.
ADI,
Also read: Salesforce ‘in the penalty box,’ while Workday sidestepping headwinds, analyst says of cloud software space
Arya differed with Muse in the rest of his picks, highlighting Applied Materials Inc.
AMAT,
“Chip independence as important in next era as energy independence was in last century,” the analyst said.
BofA Securities also upgraded electronic-design automation companies Cadence Design Systems Inc.
CDNS,
The SOX index closed the week down closed down 3.1%, compared with a 2.1% decline on the S&P 500 index
SPX,