© REUTERS AMD (AMD) and Micron (MU) are the top chip stocks to own in 2023 – UBS
By Senad Karaahmetovic
Despite predictions that the US chip sector is likely to experience another challenging year, UBS analysts say they are bullish on the sector in 2023 and see a trading opportunity .
China’s reopening could at least partially offset weakness from the US and Europe. Analysts expect chip sector momentum “to really build into CQ2 and 2H:23 before ISM can bottom out later this year.”
“The estimated cuts are eventually broad enough that they reach levels of similar breadth to other stock bottoms and drop ~25% in total across the industry. Delivery times and backlogs. Overdue as a result of shortages caused by COVID has the potential to change the way we think investors should approach timing for this next bull run,” they said in a guest note. row.
The analysts added that they wouldn’t be surprised if chip stocks “moved earlier than in previous cycles,” the main reason they upgraded Advanced Micro Devices (NASDAQ:) stock recently.
“AMD and MU remain our focus stocks for 2023 along with others we like including NVDA, MRVL, AVGO, TER, LRCX and ADI,” they added.
Last month, analysts upgraded AMD stock to Buy, citing key cyclical indicators turning more positive.