The stock market is rushing about in search of at least some positive signals, and experts have already begun to worsen the forecast for the dynamics of the share price of semiconductor companies. During a pandemic and recession in the global economy, investors prefer to invest in other assets.
Analysts note a high degree of uncertainty in the current situation, talk about the appearance of signs of a persistent recession in the second quarter and do not expect the macroeconomic situation to normalize until next year. Under these conditions, they urge investors not to rely too much on stocks of companies in the semiconductor sector. However, from the current levels, these shares are unlikely to become much cheaper, in their opinion, since expectations for a reduction in company earnings are already included in the current quotes.
The specialists of this investment bank are lowering their forecast for the share price of the following companies: Intel from $70 to $60, NVIDIA from $350 to $300, AMD from $58 to $53. Colleagues from Morgan Stanley also cite the global recession as the main factor determining the movement of the stock market in the foreseeable future. In addition to Intel shares, they worsen the forecast for securities quotes of Texas Instruments, Western Digital Corporation and Micron.
With some optimism about the business of individual companies in the sector, representatives of Citi. They point to surges in demand for server hardware due to the need to transfer employees of many companies to remote work during the outbreak of the coronavirus, as well as the increase in activity in the field of online commerce. Intel, AMD and Micron can benefit from these trends, according to the authors of the forecast.
Source: 3dnews.ru