A Cantor Fitzgerald initiating coverage report on the semiconductors and semiconductor equipment industry highlighted their top picks for 2024. On average, Cantor sees 14% upside in 2024 for the 18 stocks it included under its coverage.
2024 Top Stock Picks
Their top stock picks, as highlighted in the report, were NVIDIA Corp (NASDAQ:NVDA), Western Digital Corp (NASDAQ:WDC), ASML Holding NV (NASDAQ:ASML), NXP Semiconductors NV (NASDAQ:NXPI) and GlobalFoundries Inc (NASDAQ:GFS) for 2024. Per the report, these stocks are expected to deliver upside ranging from 21% to 36% in 2024.
| Stock | Upside % 2024 |
| NVIDIA Corp (NASDAQ:NVDA) | 36% |
| Western Digital Corp (NASDAQ:WDC) | 31% |
| NXP Semiconductors NV (NASDAQ:NXPI) | 23% |
| GlobalFoundries Inc (NASDAQ:GFS) | 23% |
| ASML Holding NV (NASDAQ:ASML) | 21% |
| Micron Technology Inc (NASDAQ:MU) | 18% |
| Advanced Micro Devices Inc (NASDAQ:AMD) | 17% |
| Marvell Technology Inc (NASDAQ:MRVL) | 17% |
Semiconductor stocks upside potential 2024: Cantor Fitzgerald
Other semiconductor companies with at least 15% projected upside include Micron Technology Inc (NASDAQ:MU), Advanced Micro Devices Inc (NASDAQ:AMD) and Marvell Technology Inc (NASDAQ:MRVL).
While most semiconductor stocks appear to have good times ahead for them, three names fell in the Neutral rating category – Qualcomm Inc (NASDAQ:QCOM), Teradyne Inc (NASDAQ:TER) and Intel Corp (NASDAQ:INTC). Cantor expects these to be relative underperformers.
The Cyclical Recovery Is Different This Time
The semiconductor industry is experiencing a cyclical recovery, with the PHLX Semiconductor Sector Index (NASDAQ:SOX), hitting its bottom in October 2022 and rising 95% since then. The trajectory was seen replicated by the iShares Semiconductor ETF (NASDAQ:SOXX).
Nevertheless, the industry’s core fundamentals hit their lowest point in the second quarter of 2023, signaling the start of a major upward shift.
Notably, this recovery differs from previous cycles, with unique factors such as varying lead times, inventory builds, and supply/demand dynamics contributing to increased volatility across different end markets.
The current cycle sees AI, PC/Smartphones, Data Center/Networking as potential gainers from here, while…
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