Warren Buffett’s Berkshire Cuts Apple Stake And Buys These Drugmaker, Telecom Stocks Instead

Warren Buffett’s Berkshire Cuts Apple Stake And Buys These Drugmaker, Telecom Stocks Instead


Can these 3 semiconductor stocks sustain their strong growth momentum?

Silicon chips are absolutely essential for our modern digital world. You’ll find them in everything from your PC to your smartphone to your car to a coffee maker — even the light that pushes on the crosswalk is controlled by semiconductor chips, giving chip makers the advantage of a captive customer base Get. Evercore ISI’s 5-Star analyst CJ Saraswati made his approach to chip stock prospects on that basis, writing: “Each industry vertically focuses on digitalisation combined with product cycles including 5G, AI / ML. Concentrates, Industrial / Industrial as well as Continuous Robustness in PCs and Recovery in Networking in a Broad-Based PC… Our base case calls for a 14% increase in CY21 to $ 500B for semi-revenue. “This is not the only positive point, as Saraswati said,” Add to the potential for aggravation combined with very lean inventions and potential supply constraints and we think the risk for growth is high and we are finally in this cycle one cycle. ” Can see (meaning 6-8 quarters upcycle). ”There is agreement among Wall Street’s best analysts that chip stocks have a bright future, and Museum Street peers are busy choosing equities they see as winners in the coming year. Using the TipRanks database, we identified three stocks that have received tremendous praise from Street, enough to create a “strong buy” analyst consensus. Silicon Motion Technology (SIMO) is the first semiconductor name What we are looking at is Silicon Motion Technology. The company’s main products are NAND flash memory circuits for solid state storage units. SIMO also produces chips for flash cards and USB drives. Recent stock gains show the strength of that niche ; In the last 3 months, SIMO stock rose 74%, and now It is trading at a 52-week high only. SIMO reported its Q4 and full-year 2020 results earlier this month, which were slightly mixed. Year-over-year, the quarter saw a 6% drop in revenue to $ 143.9 million. However, revenue grew by 13%. For the full year, the $ 539.5 million top line was 17% yo. For the quarter, the company saw strong yoy gains in SSD component sales. The company ended the quarter – year and – with a solid liquidity position, reporting a 5.4% yo increase with cash and cash equivalents of $ 369.2 million. Along with the firm’s cash position, the company also announced its dividend for the current quarter. The dividend – to be paid on 26 February – is for 35 cents per share. It is annualized for $ 1.40, and yields 2.2%. Covering the stock for Craig-Hallam, analyst Anthony Stoss believes that based on current trends, SIMO is on a clear path to achieving the company’s goal of hitting $ 1 billion in sales by 2023 . “While we are currently modeling a little below $ 8 for FY23. Due to the increased tax rate, we think SIMO’s revenue could come above $ 1B in EPS driving of $ 8B. SIMO expects That their customer SSD business will double over the next 3 years as they gain market share working towards their 40% target, accelerating SSD out of the notebook and SIMO’s next gen PCIe solution Gain traction, “Stoss noted”. For the next several years, margin supply is set to improve issues and SIMO is potentially distributing $ 8 + in EPS within 3 years, “Stoss. Retains its Buy rating on SIMO. Analysts point out that if everything goes according to plan, SIMO will happen. A $ 100 stock over the next 12 months, meaning ~ 57% return. (To see Stoss’ track record, click here) Silicon Motion presents investors with a strong Buy Analyst consensus rating based on 8 reviews, including 6 Buys and 2 Holds. The stock has a trading price of $ 63.43, and an average price target of ~ 9% above that level is $ 69.50, (see SIMO stock analysis at TipRank) from an SSD specialist at Semiconductor (ON), we’ll move to sensors. Microcontrol ers, and Optoelectronics. ON Semiconductor produces the chips required for these devices, which solve problems for engineers in many fields. ON’s products are found in memory systems, interface switches, logic boards, drivers, and power management units. The company has a market cap of $ 17.3 billion, annual sales are over $ 5 billion and the stock has risen 47% in the last 90 days. ON’s Q4 and full year results of 2020 saw a slight increase year-on-year, but a gradual gain. Fourth quarter revenue was $ 1.45 billion, up 3% from the year-ago quarter and 10% from Q3. EPS in Q4, at 21 cents, was 50% year-over-year. For the full year 2020, the company reported strong gains in cash flow. Cash from operations rose to $ 884.3 million from $ 694.7 million, a 27% increase. Free cash flow, which was $ 160.1 million in 2019, increased 212% to 500.1 million in 2020. In December, Onee announced that Hassan al-Khuré had stepped in as the new CEO and company president. It was then announced in January that Thad Trent would take over the VP and CFO positions effective this month. Craig Ellis, 5-Star analyst at B-Riley Securities, sees the new management as a net positive for the company. “We are encouraged to focus more on high-difference leadership products with new management, as a priority lever for vertical integration, R&D, and channel strategies … We believe Street The projections will reset higher, but with even longer-term upside potential as GM expands. Extensively and more easily processed than we previously expected, “Ellis opined. To this end, Ellis Buy at Buy, and its $ 50 price target reflects confidence in 19% upside potential. (To see Ellis’ track record, click here) Overall, the record for On Semiconductor has 19 recent reviews. , And none of them are less than 16 buys. Of the remaining three, 2 are halls and 1 is a cell. It gives a strong Buy Analyst consensus rating. However, most expect the shares to be limited for now, As the current $ 42.03 average price target indicates. It will be interesting to see analysts upgrade their ratings in the coming months Or upgrade the price target. (See stock analysis on TipRank) Micron Technology (MU) Among the major chip manufacturers, Micron has gained a place in the memory segment. The company has raised its market cap to $ 99 billion, as shares have appreciated by 43% in the last 3 months. These benefits came from the company’s increased demand for data storage, flash storage and DRAM chips. The company had a good start to fiscal 2021. Fiscal Q1 saw a top line of $ 5.77 billion, up 12.2% year-on-year. EPS increased 65% to 71 cents. In recent quarters, Micron has ushered in new memory technology, with strong quarterly results. These include the first 176-layer NAND chip, announced back in November, that promises to upgrade flash memory performance – and has automotive, data center and mobile applications. This past January, Micron announced the first volume delivery of a 1-alpha DRAM chipset. The new chips are expected to see strong sales in the coming year. Covering this stock for Rosenblatt Securities, 5-Star analyst Hans Mossman writes, “Strong demand in the cloud, client, auto, and mobile is helping to improve conditions in DRAM, while a power outage and earthquake hit DRAM has limited supply. Term, an economic recovery and secular trends (5G and AI) are expected to result in strong demand. ”Unexpectedly, Moses envisioned a 36% increase for the next 12 months. Gave MU shares a Buy rating and a $ 120 price target. (To see Moses’ track record, click here) All in all, Micron’s recent 22 reviews were Buy, 24 on record, the stock having its strong Buy consensus. Giving a solid basis for the ratings of the company – and the confidence store of the company and Wall Street. The stocks are trading for $ 88.12, and their $ 97.64 average price target is up for ~ 11% in the coming months. Suggest. (See MU Stock Analysis at TipRank) Good for semiconductor stock trading at attractive valuations To discover six ideas, TipRank’s Best Stocks to Buy, a newly launched tool that unites the equity insights of all TipRanks. Disclaimer: The opinions expressed in this article are solely those of select analysts. Content is to be used for informational purposes only. It is very important to do your own analysis before making any investment.



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