Stocks of semiconductor companies have been declining since the beginning of the year. Industry insiders predict that things will deteriorate before they improve. Analysts forecast a more than 15% decline in semiconductor stock prices in the second half of 2014. It will be the worst decrease ever seen in the previous ten years. This year, the analyst projects a 9% YoY decline in PC and smartphone unit sales. During this time, semiconductor companies will be most at risk. The remaining need for semiconductors is driven by cloud computing, electric vehicles, and artificial intelligence. The current chip scarcity brought on by broken supply chains and manpower difficulties prompted semiconductor businesses to increase their inventory. June 2022 saw a 9.1% YoY increase in consumer prices, which raised hopes that the Federal Reserve would announce yet another sharp increase in benchmark interest rates.
Insider Monkey takes a look at the 10 semiconductor stocks that analysts are slashing price targets of. The target price for Skyworks Solutions, Inc. was reduced by John Vinh of Keybanc on July 12 from $160 to $140. He reduced his expectations for a number of semiconductor stocks and emphasized that the semiconductor industry is about to undergo a correction. A Dutch semiconductor business called ASML Holding N.V. focuses on the design and production of photolithography technologies. In June 2022, Ray Dalio’s Bridgewater Associates started a $1 billion short position in ASML. A California-based producer and supplier of wafer fabrication equipment to the semiconductor industry is Lam Research Corporation. Wells Fargo maintained an Equal Weight rating on Lam Research Corporation while lowering the stock’s price target from $525 to $460. The San Jose, California-based company Broadcom Inc. is a diversified designer, developer, manufacturer, and supplier of semiconductors and software for infrastructure solutions. Due to Broadcom’s involvement in the data center market, Bank of America decreased its target price for the company. The price objective for Applied Materials, Inc. was reduced by Wells Fargo from $135 to $110. According to the experts, sales of equipment used in wafer manufacture will drop from $99.2 billion in 2022 to $96 billion and then to $91 billion in 2023. For more details, click 10 Semiconductor Stocks That Analysts Are Slashing Price Targets Of.
