Stock Price & Analysis

Based on the analysis of United Microelectronics Corporation (UMC) stock, considering both the positive sales growth and the challenges such as the double downgrade from Citi, it is advisable to hold off on buying UMC stock at this time. The stock's underperformance and negative analyst sentiment outweigh the recent sales increase, suggesting a cautious approach until further clarity is provided.

The price prediction for UMC stock in 2025 is expected to range between $6.20 and $7.00.

1. Bullish Scenario: UMC stock could reach $7.00 driven by strong sales growth, as February sales increased 4.25% year-over-year.
2. Neutral Scenario: The stock may stabilize around $6.75 due to flat wafer shipments and decreasing ASPs in Q1.
3. Bearish Scenario: UMC could drop to $6.20 amid pricing pressures and a recent analyst downgrade.

The S1 support level for UMC Stock is $6.53 ,The R1 resistant level for UMC Stock is $7.57.

As of the end of day on 2025-04-02, the price of UMC Stock was $6.65.

The target price for UMC Stock according to analyst rating is 6.30, with the highest price target at 8.10 and the lowest at 4.80. Analysts have a Hold rating on UMC Stock overall.

The market cap of UMC is $84.4B.

Analysis and Insights

To determine if United Microelectronics Corp (UMC) is overvalued, we analyze its valuation metrics, recent performance, and market sentiment.

Valuation Metrics:

UMC's current valuation metrics are as follows:

• P/E Ratio: 13.08 (lower than the industry average, suggesting undervaluation)
• EV/EBITDA: 6.75 (indicating reasonable valuation)
• P/S Ratio: 1.82 (moderate)
• P/B Ratio: 1.71 (suggesting undervaluation)
• Dividend Yield: 5.36% (attractive for income investors)

Recent Performance and Market Sentiment:

UMC reported a 4.25% year-over-year increase in February sales, but the stock has dropped 14% over the past year. Despite positive sales growth, the stock faces pricing risks and a recent double downgrade from Citi, reflecting market concerns about its outlook.

Conclusion:

While UMC's valuation metrics appear attractive, the stock's recent underperformance and market challenges suggest caution. Investors should consider both the undervaluation signals and the operational risks before making a decision.

United Microelectronics Corp is a global semiconductor foundry. The Company provides integrated circuit (IC) production for applications spanning every sector of the electronics industry. The Company operates through two segments. The Wafer Fabrication segment is mainly engaged in the manufacture of chips to the design specifications of its customers by using its own processes and techniques. The New Business segment is engaged in the research, development, manufacture and provision of solar energy. The Company is engaged in the maintenance of a customer base across various industries, including communication, consumer electronics, computer, memory, new generation light-emitting diode (LED) and others, while focusing on manufacturing for applications, including networking, telecommunications, Internet, multimedia, personal computers (PCs) and graphics.

The price prediction for UMC stock by 2030 is estimated to reach $15 to $20 per share. This forecast is based on the growing demand for semiconductors driven by AI, 5G, and other emerging technologies, as well as UMC's strategic investments in advanced packaging and capacity expansion. The company's focus on technological innovation and market expansion positions it well for long-term growth in the semiconductor industry.

UMC has a total of 19833 employees.