JPMorgan's Top 5 Semiconductor Picks Before Earnings

J.P. Morgan issued its Top 5 semiconductor stocks on Thursday ahead of earnings.

Analysts led by Harlan Sur anticipated the majority of the companies under coverage reporting the March quarter results would deliver revenue and earnings that are in line with both the firm and consensus expectations.

The firm’s Top Picks, each of which were rated Overweight:

Broadcom Corporation BRCM

Texas Instruments Incorporated TXN

Intel Corporation INTC

Micron Technology, Inc. MU

Maxim Integrated Products Inc. MXIM

The analysts believed the above names could deliver greater than 15 percent returns this year versus the 5-10 percent expected for the broader semiconductor group.

Sur noted that the top picks were “leaders in their target segments” with “Broadcom for networking & connectivity; Intel for PCs, datacenter; Texas Instruments for analog, with particularly broad market exposure; Micron as a beneficiary of consolidation in the memory space with improving end-market demand; and Maxim for automotive / industrial exposure.”