To: Johnny Canuck who wrote (69833 ) 1/18/2026 3:40:21 AM From: Johnny Canuck Read Replies (1) | Respond to Long term hold stock for me.youtu.be Chip Stock Investor discusses the potential for a recovery in the "auto, industrial, and power" semiconductor sectors, highlighting Microchip Technology (MCHP) as a key signal that the market may have bottomed out.Key Highlights and Market Analysis Microchip’s Positive Guidance: On January 5th, Microchip announced that its net sales for Q3 fiscal year 2026 (the December 2025 quarter) would exceed previous expectations, reaching approximately $1.2 billion [ 01:50 ]. This represents a nearly 5% increase from the original midpoint guidance [ 01:59 ].The Bottoming Process: The hosts suggest that the semiconductor downturn for industrial and auto chips likely bottomed in March 2025 [ 04:52 ]. While a "hockey stick" (rapid) recovery in revenue hasn't happened yet, there is a steady quarter-over-quarter increase of about 4% [ 04:42 ].Inventory Levels: A critical metric for value in this sector is the reduction of inventory. Microchip’s inventory is currently at its lowest level in several quarters [ 05:54 ]. As inventories drop, "idle fabs" (manufacturing plants) can be turned back on, which could lead to a significant recovery in earnings per share (EPS) [ 06:13 ].Book-to-Bill Ratio: Microchip reported a book-to-bill ratio (new orders divided by completed orders) greater than 1.0 throughout 2025, which is a classic indicator of a new growth cycle [ 08:55 ].Investment Strategy: Value vs. Momentum Value Investing: The hosts categorize these stocks as "value plays" that require patience, contrasting them with high-momentum AI and data center stocks like NVIDIA [ 10:37 ].Competitors to Watch: The video notes that other companies in this segment, such as Texas Instruments, ST Microelectronics, ON Semiconductor, and Lattice Semiconductor , are seeing similar downward trends in inventory, moving in a positive direction for investors [ 07:29 ].Remaining Risks: Investors should remain cautious as these companies are "not completely out of the woods yet" due to high competition from China and the time needed to fully restore profitability [ 09:42 ].Video Link: Best Semiconductor Value Stocks for 2026: Microchip Signals The Bottom! Gemini can make mistakes, so double-check it
