Positive on global semiconductors
The recent correction in the share prices of global semiconductor manufacturers makes us tactically positive on the industry.
Supported by a strong and rising contribution from artificial intelligence (AI) and stabilizing personal computer (PC) and smartphone sales, we see a solid fundamental recovery for global semis in 2024.
Supported by a strong and rising contribution from artificial intelligence (AI) and stabilizing personal computer (PC) and smartphone sales, we see a solid fundamental recovery for global semis in 2024.
Global semiconductor stocks have declined by double digits from their recent peak due to profit-taking and rising geopolitical tensions.
However, we think the industry's fundamentals are set to rebound strongly and forecast more than 25% revenue growth and over 50% profit growth in 2024. With this outlook as well as an attractive valuation of 18.5x forward P/E, we see tactical opportunities emerging for global semiconductor stocks. A strong and rising contribution from AI and stabilizing PC and smartphone sales should act as additional catalysts.
Hence, we are launching a short-term, tactical theme on global semiconductors (MSCI AC World Semiconductors & Semiconductor Equipment Index), as we expect the industry to outperform the broader growth benchmark index (MSCI AC World Growth) by mid-single digits over the next 3–6 months. Please refer to our selection lists for more semiconductor stock-specific views.