A Wall Street firm on Wednesday downgraded several semiconductor stocks as the outlook for chip sales ebbs. But it sees chip design firms Sustavi dizajna kadence (CDNS) i Sinopsys (SNPS) holding up amid a possible industry downturn.
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BofA Securities lowered its forecast for semiconductor sales growth to 9.5% this year from 13% previously. It sees semiconductor sales falling 1% in 2023, vs. its prior target for 7% growth.
“Semi downturns happen every 3-4 years, and we could be due for another one,” BofA analyst Vivek Arya said in a note to clients. “Tighter global monetary policy, geopolitical turmoil and consumer weakness is likely to pressure second-half 2022 and 2023 chip demand.”
On the plus side, constrained supply and pricing strength could help cushion a cyclical downturn in the semiconductor industry, Arya said.
Semiconductor Stocks Downgraded
Data center, cloud computing and automotive chip demand should help offset softening sales of smartphones and personal computers, he said.
Among semiconductor stocks, he downgraded wireless chipmakers Skyworks Solutions (SWKS) i Qorvo (QRVO) to underperform from neutral on the maturing 5G smartphone upgrade cycle. He also pointed to rising competition from Qualcomm (QCOM).
Plus, Arya downgraded Texas Instruments (TXN) to neutral from buy as TI increases its capital spending on new U.S. chip fabrication plants, commonly called fabs.
He rates Nvidia (NVDA) as his top pick in semiconductor stocks because of its exposure to cloud computing and artificial intelligence markets. In the same segment, he has buy ratings on Napredni mikro uređaji (AMD), Broadcom (AVGO) i Marvell Technology (MRVL).
He also likes semiconductor stocks that play in the automotive market, especially electric vehicles and advanced driver-assistance systems. Those stocks include Analogni uređaji (ADI), NXP poluprovodnici (NXPI) i Onsemi (ON).
Cadence, Synopsys Called Resilient
Meanwhile, Arya upgraded Cadence and Synopsys to neutral from underperform on their resiliency in the current market.
“We expect demand for chip design software/verification (electronic design automation or EDA) to grow unabated on secular growth in R&D intensity,” he said.
Cadence and Synopsys are both on the IBD Tech Leaders list. Cadence stock has an IBD kompozitna ocjena of 92 out of 99. Synopsys stock has a CR of 93.
Kompozitna ocjena IBD-a kombinira pet zasebnih zaštićenih ocjena u jednu ocjenu jednostavnu za upotrebu. Dionice s najboljim rastom imaju kompozitnu ocjenu 90 ili bolju.
Na berzi danas, Cadence stock rose 0.5% to 150.92 and Synopsys stock advanced 0.8% to 306.06. Both stocks are in consolidation patterns, prema IBD MarketSmith grafikoni.
Pratite Patricka Seitza na Twitteru na @IBD_PSeitz za više članaka o potrošačkoj tehnologiji, softveru i zalihama poluvodiča.
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Source: https://www.investors.com/news/technology/semiconductor-stocks-downgraded-chip-designers-upgraded/?src=A00220&yptr=yahoo