Technology
Analyst Says Buy These 3 Top Chip Stocks During Tech Wreck
Published:
Last Updated:
Market corrections and sell-offs are always the same. What started as a trickle can turn into a torrent fast, and once the margin calls come a knocking, things can get real ugly. We have seen just that, as investors sell everything with any tinge of risk and pour the money into very low-yielding U.S. Treasury securities. For those with some dry powder, this sell-off can turn into a goldmine, especially with some top semiconductor stocks being put on sale.
In a recent research note, SunTrust Robinson Humphrey, turned positive on the chip space, as many of the overall metrics the analysts look at are supportive of a positive bias. While the note said that the consumer sentiment momentum is less than stellar, the group trades at a 6% discount to the S&P versus a five-year premium of 3%.
Here are the three stocks that are rated Buy at SunTrust featured in the research report.
NXP Semiconductors
This is considered a top play for investors looking for a chip stock with Internet of Things exposure. NXP Semiconductors N.V. (NASDAQ: NXPI) is down a stunning 44% from highs printed in June of 2015 but is the top pick at SunTrust.
The merger with Freescale Semiconductor was widely applauded on Wall Street, and many analysts believe it is transforming the company into a powerhouse. NXP became the fourth largest semiconductor company in the industry, and it is the number one supplier in auto semiconductors, number one in global microcontrollers (MCU) and a dominant supplier in mobile payments.
24/7 Wall St.Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
