Broadcom, Marvell, Analog Devices And More Semiconductor Stocks Poised For 6%-8% Revenue Growth: JPMorgan – Markets Insider
JPMorgan analyst Harlan Sur shares an optimistic outlook for the semiconductor industry in anticipation of the Q1 earnings season.
The sector, including semiconductors, semiconductor capital equipment (semicap), and chip design software (EDA/IP), has continued to outperform broader indices YTD. The iShares Semiconductor ETF (NASDAQ:SOXX) is up 12.12%, as compared to the benchmark S&P 500 Index which is up 7.41% YTD.
The outperformance has been fueled by expectations of cyclical bottoming and positive earnings revisions.
“From an industry perspective, we expect semi industry revenue to improve 6-8% Y/Y in 2024 …following an 8-10% decline in CY23,” said Sur. Key trends that he sees driving this performance include:
Also Read: Taiwan Semi’s AI Boom and US Expansion Set to Drive Q1 Earnings Growth
With accelerating demand trends, recovering auto and industrial segments, and a resurgence in the memory industry, the semiconductor sector presents compelling investment opportunities for those looking to capitalize on the ongoing tech-driven transformation.
Read Next: Ahead Of Chip Earnings, Analyst Turns More Bullish On Nvidia And These Semiconductor Stocks On Robust AI Demand
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