Chipmakers up amid broader rally, Wells Fargo outlook

Ambarella

09/01/2023 16:54

(Updates)
    ** Shares of chipmakers soar amid broader market optimism
around China reopening its borders and Wells Fargo anticipating
an industry recovery in the second half of 2023
    ** Major chipmakers Advanced Micro Devices  AMD.O , Nvidia
Corp  NVDA.O , Intel Corp  INTC.O  and Qualcomm Inc  QCOM.O  up
between 2.6% and 7.9%
    ** Downturn in chip industry due to demand weakness is
likely to bottom out in first half of this year, say Wells Fargo
analysts, flagging it as an opportunity to get back into the
sector
    ** Analysts expect demand across memory, handset and PC
markets to start rebounding towards the end of first half of
2023, at a time when China demand is also expected to recover
after reopening
    ** Philadelphia SE Semiconductor index  .SOX  up nearly 4%
on Monday, after a near 36% slump in 2022, steepest annual
decline since 2008
    ** Wells Fargo remains bullish on automotive chip market,
with NXP Semiconductors NV  NXPI.O , Allegro MicroSystems Inc
 ALGM.O , Wolfspeed Inc  WOLF.N  and Ambarella Inc  AMBA.O  as
"top ideas", stocks up between 2.2% and 4%
    ** "We are bullish on the near-term cyclical trends relating
to the continued recovery in light vehicle production" - Wells
Fargo 
 (Reporting by Tiyashi Datta, Chavi Mehta and Ankika Biswas in
Bengaluru)
 ((tiyashi.datta@thomsonreuters.com))