- Sales of semiconductors were up nearly 24% YOY in May compared to an 18% growth in March and a 22% growth in April, according to Barron’s.
- Wells Fargo (NYSE:WFC) analyst David Wong notes that May marks the eleventh month of year-over-year growth and the seventh month where the growth was in the double digits.
- Wong notes that some mixed data points suggest inventory backlogs but still expects an 11% to 17% growth for the overall semiconductor industry.
- Wong maintains an Outperform rating on Micron Technology (NASDAQ:MU) with a $29.86 price target.
- Macquarie Research analyst Damian Thong sees continued chip sector sales and profitability in what he calls the “Age of Convergence.”
- Thong recommendations on pullback include Micron, Samsung (KS:005930) (OTC:SSNLF, OTC:SSNNF), and SK Hynix ([HXSCF]], OTC:HXSCL).
- Related ETFs: SOXL, SMH, SOXX, USD, XSD, PSI, SOXS, SSG, XTH, FTXL
- Now read: The Run Slows Down: Our Core Portfolio Is Up 18.82% Six Months Into 2017
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