By George Glover
Chip equipment stocks are going through a rough patch -- but that's created a buying opportunity, according to Citi.
Analyst Atif Malik said in a research note published Monday the sector now looks attractive after a "sharp correction" over the second half of the year, when weak demand from China and for consumer devices such as smartphones dragged on share prices.
He added that "risk-reward appears skewed to the upside" because many chip equipment stocks now trade at a discount to both the benchmark S&P 500 and the PHLX Semiconductor Index, which tracks the broader semiconductor sector.
The "Big Three" chip equipment makers are KLA, Applied Materials, and Lam Research -- but Malik has tipped five under-the-radar stocks to also benefit from the end of what he called a "cyclical trough."
He upgraded Advanced Energy Industries, FormFactor, MKS Instruments, Nova, and Veeco Instruments to a Buy rating, setting price targets that imply each of them can rack up double-digit gains.
Write to George Glover at george.glover@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
January 06, 2025 08:18 ET (13:18 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。