(Finance) – Over the last few weeks there have been “encouraging signs” which indicate that the The bottom of the current downturn for European semiconductor companies has been reached. He states it Bank of America Global Research in a research on the topic, underlining that the two markets that have suffered the most – Memory and Consumer – “seem to be improving”.
In the market of PCthe recent results of Intel, AMD And Logitech are indicative that notebook PC inventories have normalized and ordering patterns are returning to normal, the research said. In the smartphonesrecent better-than-expected results and guidance from chipset leaders Mediatek and Qualcomm they are positive for the larger cycle. Additionally, Qualcomm encouragingly predicts that 5G smartphone demand will grow at a high-single-digit/low-double-digit rate next year.
With approximately 80% of revenues exposed to Consumer (over 70% exposed to smartphones), Soitec and the stock most exposed to improving demand among those in BofA coverage. Other stocks highly exposed to the Consumer sector include Nordic (about 60% of sales), Technoprobe (about 50% of sales), WELL YES (about 50% of sales) e Siltronic (about 50% of sales).
Between diversified Semis STM (25%), Infineon (15%) e AMS (15%) have lower exposure to Consumer, but would benefit greatly from increased demand through rates use of factories higher/higher GM. Given the exposure of TSMC (Taiwan Semiconductor) revenues of approximately 50% to Consumer markets (of which over 35% to smartphones), ASML And ASMI are likely beneficiaries of increased utilization rates.