Zacks Analyst Blog Highlights: NVIDIA, ADI, Semtech, and Texas Instruments



For immediate release

Chicago, IL – October 13, 2021 – Zacks.com announces the list of stocks featured on the Analysts Blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Recent actions featured in the blog include: NVIDIA Corp. NVDA, Analog Devices, Inc. ADI, Semtech Corp. TCMS and Texas Instruments Inc. TXN.

Here are highlights from Tuesday’s analyst blog:

Chip industry continuing to drive demand: 4 stocks to buy

Growing demand from automakers and electronics manufacturers has resulted in a global shortage of microchips. This has led many automakers to temporarily cut production at several factories, which is now straining their income. And experts believe the crisis is not going to end anytime soon.

In fact, the predictions are that the global auto industry will suffer millions of dollars in losses this year. However, this has benefited semiconductor manufacturers due to the surge in demand.

Auto makers crippled by semiconductor shortage

The semiconductor shortage began to pose a problem for the auto industry early in the year – just as the industry was trying to get back on its feet after a disappointing 2020 due to the pandemic.

Although the demand for cars has started to increase since the beginning of the year, the shortage of microchips has become a major obstacle. This has continued ever since, with big names reducing production at their various factories over the months.

However, the crisis only got worse from there. The global auto market is expected to lose $ 210 billion in revenue in 2021, according to consulting firm AlixPartners, as automakers continue to cut production due to chip shortages.

The company predicted in January that losses would reach $ 606 billion. He revised his forecast again in May to $ 110 billion, but now sees losses doubling from there.

The crisis has intensified as the demand for cars has increased since the economic reopening. Most dealers are now complaining that despite high demand, they cannot sell cars because production has been cut in many of their factories.

Semiconductor industry profits

Previously, the microchip supply shortage only affected the automotive industry, but now smartphone makers and other electronics makers are also suffering.

The supply crisis began last year, following the coronavirus outbreak, when demand for electronics, PCs, laptops and video games increased. It was because people were working, learning and playing from home.

Matt Murphy, CEO of Marvell Technology, recently told CNBC that the semiconductor crisis will last until 2022 and possibly beyond. This may not be good news for the auto and electronics industry, but it will certainly boost chipmakers’ morale as higher demand means higher sales.

Earlier this month, the Semiconductor Industry Association (SIA) said global semiconductor sales jumped 29.7% year-over-year in August to $ 47.2 billion and 3.2% month over month.

Our choices

Given the growing demand for semiconductors and the continuing shortage of supply, the semiconductor industry is only expected to benefit in the short term. Below are five bulleted stocks that investors can benefit from in the current scenario.

NVIDIA Corp. is the world leader in visual computing technologies and the inventor of the graphics processing unit, GPU. Over the years, the company’s focus has evolved from PC graphics to AI-based solutions that now support high-performance computing, gaming, and virtual reality platforms.

The company’s expected profit growth rate for the current year is 65.6%. Zacks’ consensus estimate for current year earnings has improved 4.5% in the past 60 days. Nvidia has a Zacks Rank # 2 (Buy). You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.

Analog devices, Inc. is an original equipment manufacturer of semiconductor devices, in particular analog, mixed and digital signal processing integrated circuits.

The company’s expected profit growth rate for next year is 30.6%. Zacks’ consensus estimate for current year earnings has improved 2.2% in the past 60 days. Analog Devices holds a Zacks Rank # 2.

Semtech Corp.The devices are used in a variety of applications, including computing, communications, industry, military aerospace, and automotive. The company also provides a limited amount of wafer foundry services to other electronic component manufacturers.

The company’s expected profit growth rate for the current year is 45.7%. Zacks’ consensus estimate for current year earnings has improved 5.8% in the past 60 days. Semtech has a Zacks Rank # 1.

Texas Instruments Inc. is an original equipment manufacturer of analog, mixed and digital signal processing integrated circuits. The company recently announced the introduction of a new TI-84 graphing calculator that will support the Python programming language.

The company’s expected profit growth rate for the current year is 32.7%. Zacks’ consensus estimate for current year earnings has improved 0.8% in the past 60 days. Texas Instruments carries a Zacks Rank # 2.

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Past performance is no guarantee of future results. The potential for loss is inherent in any investment. This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether an investment is suitable for a particular investor. It should not be assumed that any investment in any identified and described securities, companies, sectors or markets was or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or securities asset management activities. These returns come from hypothetical portfolios composed of stocks with a Zacks rank = 1 that have been rebalanced monthly without any transaction costs. These are not the returns of actual equity portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for more information on the performance numbers displayed in this press release.

Zacks names “the best single pick to double”

Among thousands of stocks, 5 Zacks experts each chose their favorite to skyrocket + 100% or more in the coming months. Of these 5, research director Sheraz Mian chooses one to have the most explosive advantage of all.

You’ve known this company from its past glory days, but few would expect it to be ready for a monster turnaround. Fresh out of a successful repositioning and flush with A-List celebrity mentions, it could rival or overtake other recent Zacks stocks which are expected to double as Boston Beer Company which climbed + 143.0% in just a bit. more than 9 months and Nvidia which climbed + 175.9% in a year.

Free: see our best stock and 4 finalists >>

Click to get this free report

Analog Devices, Inc. (ADI): Free Stock Analysis Report

Texas Instruments Incorporated (TXN): Free Stock Analysis Report

NVIDIA Corporation (NVDA): Free Inventory Analysis Report

Semtech Corporation (SMTC): Free share analysis report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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