Should I Buy UMC? UMC 2026 Analysis

Should You Buy United Microelectronics Corp (UMC) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

11.380

1 Day change

-8.81%

52 Week Range

12.680

Analysis Updated At

2026/01/26

United Microelectronics Corp (UMC) does not present a compelling buy opportunity for a beginner investor with a long-term strategy at this moment. While the stock shows some positive pre-market movement and hedge fund buying activity, the lack of strong proprietary trading signals, recent analyst downgrade, pressured margins, and weak broader market sentiment suggest holding off on investment until more favorable conditions arise.

Technical Analysis

The technical indicators show mixed signals. The MACD is positive at 0.241, indicating bullish momentum, but it is contracting. RSI is at 69.84, which is neutral and does not indicate overbought or oversold conditions. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), and the stock is trading near its resistance level of R2: 11.447, suggesting limited upside potential in the short term.

Options Data

Bullish

Open Interest Put-Call Ratio

Bearish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

The stock is showing positive pre-market movement with a 5.31% increase.

Neutral/Negative Catalysts

Gross margin dropped by 11.75% YoY in Q3
Broader market sentiment is weak, with declines in major indices and semiconductor-related stocks. Options data indicates bearish sentiment with a high Option Volume Put-Call Ratio of 1.17.

Financial Performance

In Q3 2025, UMC reported revenue growth of 5.39% YoY to $1.98 billion and net income growth of 11.61% YoY to $500.62 million. However, gross margin declined by 11.75% YoY to 29.81%, reflecting cost pressures. EPS remained flat at 0.04 YoY.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

BofA downgraded UMC to Underperform from Buy, with a price target cut from NT$49 to NT$37. Analysts cite lack of ASP growth and margin pressures as key concerns.

2 Analyst Rating

Wall Street analysts forecast UMC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for UMC is 5.5 USD with a low forecast of 4.8 USD and a high forecast of 6.2 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.

0 Buy

0 Hold

2 Sell

Moderate Sell

Current: 12.480

Low

4.8

Averages

5.5

High

6.2

Current: 12.480

Low

4.8

Averages

5.5

High

6.2

KGI Securities

Underperform -> Neutral

upgrade

$70

AI Analysis

2026-01-28

New

Reason

KGI Securities

Price Target

$70

AI Analysis

2026-01-28

New

upgrade

Underperform -> Neutral

Reason

KGI Securities upgraded UMC to Neutral from Underperform with a NT$70 price target.

BNP Paribas

Alex Chang

Neutral -> Underperform

downgrade

$8.60

2026-01-28

New

Reason

BNP Paribas

Alex Chang

Price Target

$8.60

2026-01-28

New

downgrade

Neutral -> Underperform

Reason

BNP Paribas analyst Alex Chang downgraded UMC to Underperform from Neutral with an $8.60 price target.

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UMC Should I Buy

UMC Should I Buy

Should You Buy United Microelectronics Corp (UMC) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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