- With the Philadelphia Semi Index (SOXX +0.4%) down ~20% from its June highs - an inventory correction and concerns about PC/smartphone sales have contributed - Evercore's C.J. Muse thinks "now is the time" to buy into the group. He sees 20%-25% potential upside over the next 3+ months, and 5%-10% potential downside.
- NXP (NASDAQ:NXPI), Micron (NASDAQ:MU), Analog Devices (NASDAQ:ADI), and Maxim (NASDAQ:MXIM) are Muse's top picks among chipmakers. Applied Materials (NASDAQ:AMAT), Lam Research (NASDAQ:LRCX) , and ASML are his top picks among chip equipment firms. Along with the call, Muse has upgraded Analog Devices (ADI +1.9%) to Buy.
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
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Last week: Chip stocks jump as markets rally, Microchip improves guidance, Taiwan reports