Wells Fargo issued a note of caution, regarding the semiconductor sector today. Does anyone else remember how dreadful this sector was for years? You couldn’t pay me to buy a semi — now they’re all the rage.
He warned against some of the more expensive semis, like NVDA and LRCX, while suggesting the less expensive names were still great.
Source: The Fly on the Wall
Wells Fargo analyst David Wong downgraded the Semiconductor sector to Market Weight from Overweight. Recent earnings reports from chip companies suggest that year-over-year growth will likely plateau or perhaps even decelerate over the next few months, Wong tells investors in a research note. He believes many chip stocks now have “elevated multiples” off calendar 2018 earnings estimates. Wong still sees good investment opportunities in some specific stocks, however, and reiterates Outperform ratings on Intel (INTC), Qualcomm (QCOM), Micron (MU), AMD (AMD), Skyworks (SWKS) and Microsemi (MSCC).
CNBC’s halftime crew weighs in.
I agree with Josh on this one. If you like semis, stick with the high prices/high growth names. The idea of shifting to lower quality names that are cheaper is idiotic — especially if you’re concerned there could be a correction in the sector.
One of NVDA’s growth drivers is the bubble in the crypto ICO market. But don’t let that get in the way of a some good pin action.
I can’t wait to see the crew of halftime fasttime Groveling for any leftover morsel or snack in the street, when it all comes down on them
To the overseers, Trying to outlast bears:
you.cant.get.under.11.vix.much.longer.NOW
“John Henry” swung his hammer 1 more time than the machine.
Overseers of the vix game, I can wait
The semiconductor sector can thank the CBs for expanding their balance sheets. Nothing more.
Yea, the minute I go long SMH with Exodus OS signal they come out with this downgrade.
Look at the bright side, it will flag OS again tomorrow and you’re going to look like you’re ahead of the pack!