Forget AI chips: These traditional semiconductor stocks are set to soar 70%, says Morningstar
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 13 2024
0mins
Source: CNBC
Morningstar's Investment Advice: Morningstar advises investors to move away from the AI chip sector, highlighting four undervalued traditional semiconductor companies, particularly Infineon Technologies and STMicroelectronics, which could see significant stock price increases of over 70% in the next year.
Market Analysis: The firm believes that digital chipmakers like Nvidia are overvalued due to the risks associated with AI stocks, while analog/mixed-signal chip companies are currently undervalued, presenting better investment opportunities.
Analyst Views on STM
Wall Street analysts forecast STM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for STM is 33.25 USD with a low forecast of 25.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
2 Buy
5 Hold
0 Sell
Moderate Buy
Current: 29.030
Low
25.00
Averages
33.25
High
45.00
Current: 29.030
Low
25.00
Averages
33.25
High
45.00
About STM
STMicroelectronics N.V. is a Netherlands-based semiconductor company. It designs, develops, manufactures and markets a range of products, including discrete and standard commodity components, and application-specific integrated circuits (ASICs) for analog, digital and mixed-signal applications. The Company's segments include Automotive and Discrete Group (ADG), Analog, MEMS and Sensors Group (AMS), and Microcontrollers and Digital ICs Group (MDG). The ADG segment comprises all dedicated automotive Integrated Circuits (ICs), and discrete and power transistor products. The AMS segment includes low-power analog ICs for all markets, smart power products; Touch Screen Controllers, Low Power Connectivity solutions for Internet of Things (IoT), and power conversion products, among others. The AMS segment comprises general purpose and secure microcontrollers, and Electrically Erasable Programmable Read-Only Memory memories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
