Chances are, if you trade the market regularly, the action in the semiconductors has caught your attention.The XSD has corrected about 15% off recent highs. Is the pullback an opportunity? How should you put money to work in the space?
Although there are ways to play the space, comments from top Evercore analyst Patrick Wang - the Wall Street Journal’s ‘Best On The Street’ Semiconductor analyst - suggest broad bets are not your best move. “I’m not all that bullish broadly," he says on CNBC's Fast Money Halftime Report. Overall demand just isn’t all that great.”But that doesn’t mean there isn’t opportunity.In a challenging environment, Wang tells us it’s important to, "look for stocks with strong competitive positions, a robust dividend and a secular growth story."
And ahead of the broadcast Wang told us that he's identified 5 of them. They follow:Texas Instruments: Overweight Price target: $38Intel: Equal-Weight Price target: $27Monolithic: Overweight Price target: 26Applied Micro Circuits: Overweight Price target: $11On Semiconductor: Overweight Price target: $11
Of all the stocks listed above, trader Jon Najarian likes Intel best. “Whether it’s a smartphone or tablet, Intel makes chips that these devices need.”
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