Chipmakers up amid broader rally, Wells Fargo outlook
Reuters January 09, 2023 11:54:00 AM ET
** Shares of chipmakers soar amid broader market optimism around China reopening its borders and Wells Fargo anticipating an industry recovery in the second half of 2023
** Major chipmakers Advanced Micro Devices, Nvidia Corp, Intel Corp and Qualcomm Inc up between 2.6% and 7.9%
** Downturn in chip industry due to demand weakness is likely to bottom out in first half of this year, say Wells Fargo analysts, flagging it as an opportunity to get back into the sector
** Analysts expect demand across memory, handset and PC markets to start rebounding towards the end of first half of 2023, at a time when China demand is also expected to recover after reopening
** Philadelphia SE Semiconductor index up nearly 4% on Monday, after a near 36% slump in 2022, steepest annual decline since 2008
** Wells Fargo remains bullish on automotive chip market, with NXP Semiconductors NV, Allegro MicroSystems Inc , Wolfspeed Inc and Ambarella Inc as "top ideas", stocks up between 2.2% and 4%
** "We are bullish on the near-term cyclical trends relating to the continued recovery in light vehicle production" - Wells Fargo
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