Is it time for investors to buy semiconductor stocks following the recent selloff? At least one analyst is saying it is.
Christopher Danely of Citi commented in a note on Wednesday that semiconductor stocks have sold off more than 20 percent and are now favorable from a risk/reward point of view.
Index Indicator
Danely continued that in 2012, the PHLX Semiconductor index fell 20 percent from its peak, and in 2011 it fell roughly 30 percent from its peak at that time.
If history is any indicator, the index is currently down roughly 25 percent from its June 1 peak, implying a correction may be "in full swing."
Other Historical Statistics
Danely further pulled up historical data, this time pointing out that the semiconductor index increased an average of 37 percent from the respective bottom in 2011 and 2012.
The analyst finally noted that his top picks consist of Texas Instruments Incorporated TXN and Microchip Technology Inc. MCHP.
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