Market Overview

UBS Initiates On Semis: Intel Is Golden, Micron Is A Sell, Nvidia, AMD And More

Share:
UBS Initiates On Semis: Intel Is Golden, Micron Is A Sell, Nvidia, AMD And More
Related INTC
Tech Sector Earnings: Revenue Growth Widely Expected To Slow, Will Global Uncertainty Weigh?
How To Approach Q4 Earnings: The Global Perspective
Are You Positioned In The Right Sectors Heading Into 2019? (Seeking Alpha)
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
Polen Capital Focus Growth Strategy Portfolio Manager Commentary Q4 2018 (Seeking Alpha)

Some of the biggest winners in the entire stock market in recent years have been semiconductor stocks. But after huge run-ups in some popular names, stock picking has become even more important.

There may still be a handful of opportunities in semiconductor stocks, but investors need to know where to look.

The Analyst

UBS analyst Timothy Arcuri initiated coverage on the following 14 semiconductor stocks:

  • Marvell Technology Group Ltd. (NASDAQ: MRVL), Buy rating and $38 target.
  • Broadcom Ltd (NASDAQ: AVGO), Buy rating and $350 target.
  • Intel Corporation (NASDAQ: INTC), Buy rating and $70 target.
  • KLA-Tencor Corp (NASDAQ: KLAC), Buy rating and $150 target.
  • Advanced Micro Devices, Inc. (NASDAQ: AMD), Neutral rating and $11 target.
  • NVIDIA Corporation (NASDAQ: NVDA), Neutral rating and $250 target.
  • Lam Research Corporation (NASDAQ: LRCX), Neutral rating and $220 target.
  • Qorvo Inc (NASDAQ: QRVO), Neutral rating and $76 target.
  • Applied Materials, Inc. (NASDAQ: AMAT), Neutral rating and $58 target.
  • Skyworks Solutions Inc (NASDAQ: SWKS), Neutral rating and $105 target.
  • QUALCOMM, Inc. (NASDAQ: QCOM), Neutral rating and $56 target.
  • Teradyne Inc. (NYSE: TER), Neutral rating and $49 target.
  • Texas Instruments Incorporated (NASDAQ: TXN), Sell rating and $85 target.
  • Micron Technology, Inc. (NASDAQ: MU), Sell rating and $35 target.

The Thesis

The cyclical boom in the semiconductor business may be coming to an end, Arcuri says, but investors shouldn’t confuse the cyclical nature of the business with the longer-term secular growth story.

“If data is the new oil, AI is the combustion engine that will push more silicon into every vertical of the economy,” Arcuri said in a note.

Still, with the current cycle slowing, he said stock selection is critical to avoid being caught in the downdraft. UBS has tried to single out specific stocks that could beat consensus earnings expectations or where analysts seem to be missing a major business transition. At the same time, Arcuri expects the downturn to be particularly hard on memory stocks, which investors should approach with caution.

Related Links:

Evercore: Nvidia Can 'Power Through' Bitmain Ethereum Mining Tailwinds

Analyst: Bitmain's New Ethereum Mining Chip Could Spell A Little Bit Of Trouble For AMD And Nvidia

Latest Ratings for INTC

DateFirmActionFromTo
Jan 2019Bank of AmericaUpgradesNeutralBuy
Dec 2018Morgan StanleyMaintainsEqual-WeightEqual-Weight
Nov 2018DZ BankDowngradesBuyHold

View More Analyst Ratings for INTC
View the Latest Analyst Ratings

Posted-In: Timothy Arcuri UBSAnalyst Color Price Target Initiation Top Stories Analyst Ratings Trading Ideas Best of Benzinga

 

Related Articles (AMAT + AMD)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
CABOKeyBancUpgrades1,025.0
MDRXKeyBancUpgrades0.0
ANETNomuraUpgrades260.0
CNPRBC CapitalUpgrades34.0
FISVOppenheimerUpgrades88.0
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.

28 Stocks Moving In Thursday's Mid-Day Session

Mid-Day Market Update: Dow Rises 300 Points; Conatus Pharmaceuticals Shares Slide