Market Overview

BofA: Three Semiconductor Picks In A Choppy Market

BofA: Three Semiconductor Picks In A Choppy Market
Related MRVL
Morgan Stanley's Key CES Takeaways For Semi Companies
Citi Adds Nvidia, Marvell Technology To Holiday Shopping List
Related NVDA
Tech Sector Earnings: Revenue Growth Widely Expected To Slow, Will Global Uncertainty Weigh?
Benzinga's Bulls & Bears Of The Week: Delta Air, McDonald's, Netflix, Nokia, Tesla And More
Nvidia: How The Buyback Will Affect Stock Price (Seeking Alpha)

Semiconductor stocks are not a good place for investors to "hide," regardless of the company's size or balance sheet, according to Bank of America Merrill Lynch. Nevertheless, the volatility seen across the entire market provides investors with a good opportunity to pick up three stocks in the sector.

The Analyst

BofA's Vivek Arya commented on three semi stocks in light of the turbulent market: 

  • NVIDIA Corporation (NASDAQ: NVDA)
  • Skyworks Solutions Inc (NASDAQ: SWKS)
  • Marvell Technology Group Ltd. (NASDAQ: MRVL)


  • The Street sees Nvidia as "another chip company," but it is a "platform company."
  • Nvidia boasts a highly unique and leveragable architecture for some of the fastest-growing markets, including artificial intelligence and autonomous driving.
  • Recent execution has been "off the charts" and backed by a "solid" balance sheet.


  • Skyworks should see content gains in low-band diversity amplifiers and filters.
  • Greater insourcing and use of leading filters should boost gross margins.
  • The company is one of the most "overlooked" companies in the Internet of Things space.
  • Valuation is attractive at 13x forward PE.

Marvell Technology

  • Marvell is led by a strong operational management team that can manage the product pipeline from its yet-to-be-finalized 2017 acquisition of Cavium.
  • Investors may be underappreciating its 65-percent exposure to sticky markets like enterprise and networking.
  • The company is likely to benefit from the upcoming 5G era.

Price Action

  • Shares of Nvidia closed Friday at $232.08, up 6.69 percent. BofA has a $300 price objective for the stock. 
  • Shares of Skyworks closed Friday at $102.64, up 3.63 percent. BofA has a $120 price objective for the stock. 
  • Shares of Marvell Technology closed Friday at $21.30, up 2.7 percent. BofA has a $28 price objective for the stock. 

Related Links:

Munster On Nvidia's Q4: 'Its Products Are A Foundational Part Of The Future Of Technology'

Nvidia, AMD Among Top Semis In 2018, According To Bank Of America

Latest Ratings for MRVL

Dec 2018CitigroupUpgradesNeutralBuy
Dec 2018CitigroupMaintainsNeutralNeutral
Dec 2018Deutsche BankMaintainsBuyBuy

View More Analyst Ratings for MRVL
View the Latest Analyst Ratings

Posted-In: artificial intelligence Bank of America Internet of Things semiconductor Vivek AryaAnalyst Color Analyst Ratings Best of Benzinga


Related Articles (MRVL + NVDA)

View Comments and Join the Discussion!

Latest Ratings

PANWBMO CapitalUpgrades240.0
UAAGoldman SachsUpgrades28.0
GPSGoldman SachsDowngrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Why Companies Like Apple Took On Debt Ahead Of Tax Cut On Overseas Profits

Barron's Picks And Pans: Apple, Twitter, Wells Fargo And More