Deutsche Bank Sees Solid Value in Battered Semiconductor Stocks


This old school leader in semiconductors continues to work hard to focus more on Internet of Things and data center cloud spending. Intel Corp. (NASDAQ: INTC) designs, manufactures and sells integrated digital technology platforms worldwide.

The company’s platforms are used in various computing applications, comprising notebooks, two-in-one systems, desktops, servers, tablets, smartphones, wireless and wired connectivity products, wearables, retail devices and manufacturing devices, as well as for retail, transportation, industrial, buildings, home use and other market segments.

Intel investors receive a solid 2.67% dividend. Deutsche Bank has set its price target at $60. The posted consensus price objective is $52.77, and the shares closed trading most recently at $47.46 apiece.

Marvell Technology

This is among the favored mid-cap picks at Deutsche Bank. Marvell Technology Group Ltd. (NASDAQ: MRVL) is a fabless supplier of mixed-signal and analog semiconductor products to a number of storage, computing and communication applications, including hard disk drives, personal computers, servers, Ethernet switches, printers and connectivity markets.

Top analysts around Wall Street remain very positive on the company’s 2017 purchase of Cavium, and many feel the deal adds significantly to the growth element for the stock. The addition also helps make Marvell solidly positioned in data center, cloud, enterprise, security and 5G.

Shareholders receive a 1.00% dividend. The $27 Deutsche Bank price target is about the same as the posted consensus price objective of $27.14. The stock was last seen trading at $23.97 per share.

NXP Semiconductors

This is still considered a top play for investors looking for a chip stock with Internet of Things exposure. NXP Semiconductors N.V. (NASDAQ: NXPI) became the fourth largest semiconductor company in the industry after it merged with Freescale in late 2015. It is also important to note that the combined company is the number one supplier in auto semiconductors with a 14% share, as well as the number one supplier in global microcontrollers and a dominant supplier in mobile payments.

NXP continues getting its chips into high-growth areas such as contactless mobile payments, the Internet of Things, mobile phone charging, increased cellular data consumption and LED lighting. Trading at a solid discount to peers, some Wall Street analysts are very positive on the faster earnings growth potential relative to its competition.

The Deutsche Bank price target for the stock is $120. The consensus target is much lower at $114.33, and the shares closed most recently at $98.06.

These are five top stocks in a sector that has been absolutely pummeled. While trade issues and the slowdown in the overall sector may not be settled any time soon, aggressive growth accounts could start to nibble at these top stocks. Caution is still advised though, as second-quarter earnings reporting is right around the corner.