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Wells Fargo: We have 3 chip stocks going forward in 2021
Semiconductors are one of the essential industries in the modern world that we believe in or make as much as possible: Internet access, high speed computers with high speed memory, thermostats controlling our air conditioning – not much, technically, of those semiconductor chips. Does not use. With a view to the end of 2020, it is time for the annual ceremony to evaluate equities for the new year. Wells Fargo analyst Aaron Rakers took a look at the chip industry, stating several companies as potential beneficiaries next year. The analyst looks at several factors, including cloud demand, new gaming consoles and market resolution, which are linked to increase demand for chips in 2021. The future of the PC segment. Overall, however, the Rakers expect memory chips and 5G capable chips to emerge as the driver of the industry next year. Analysts expect semiconductor companies, as a group, to see growth of 10% and 12% over the next 12 months. However, this is an industry-wide average. According to Rocker, some chip companies will show significant growth in the next year, ranging from 30% to 40%. We can take a look at those companies with the latest tiprenx data to find out what makes this particular chip maker irresistible. Among the leading chip manufacturers, the micron retains its place in the memory segment. The company has seen its market cap expand to $ 3 billion this year, as the stock has appreciated 5% year-over-year. This boom comes on the product lining on computer data storage, DRAM and flash storage. Looking ahead to 2020, Micro’s revenue increased quarterly from 8. 8.8 billion in Q1 to 4 4 billion in Q2. 1.1 billion dollars. Q2 gained 71 cents and Q1 36 cents, compared to 87 cents per share. The calendar lender had 4 QFY20 microns in the third quarter, and showed a decline in the full fiscal year thanks to the COVID epidemic. Revenue was .4 21.44 billion, down 8.4% year-on-year and operating cash flow fell to 8. 8.31 billion from 19 13.19 billion in FY19. During this past quarter, Micron’s 1QFY21, the company announced the release of the world’s first 176-level 3D NAND chip. The new chip promises higher density and faster performance in flash memory, and the architecture is described as ‘radical progress’. Level calculations are 40% higher than competing chips. Looking ahead, Micro has updated its F1Q21 guidance, which forecasts total revenue of .7 7 billion, $ 75 .75 billion. This is an increase of 10% from the previous guidance. Wells Fargo’s Aaron Rackers calls Micro its top semiconductor idea for 2021. He points out that “a positive outlook on memory, and the DRAM industry in particular. DRAM accounts for about two-thirds of Micron’s revenue and accounts for the bottom 0% of the company’s profits. In addition, the rackers note “Micron’s technical implementation – 1 Zenm DRAM leadership; recently outlined the 1αnm ramp in 2021, as well as Micron’s 176-layer 2GD replacement gate 3D N&D to run an improved cost curve. , GDDR6X), multi-chip packages (MCPs), and Micron’s executive on high-bandwidth memory (eg, HBME2) will also be highlighted as positive. ” . This figure indicates a scope of 41% growth in 2021. (To see the trackers record, click here) Micron has the latest 24 reviews on the record, selling 19 byes, 4 holds and 1 and giving the stock a strong buy. With the consensus of the analyst. The shares are priced at .970.96, and recent appreciation has made them almost. 74.30 The average price has pushed towards the target. But as the rackers point of view suggests, more than just 4.5 ..% may be available here. (See MU stock analysis on Tipranx) Billion in total sales last year. Advanced Micro Devices (AMD) is a huge company with a total market cap of અ 1 billion and a market cap of .7 110.7 billion – but it does not crack in the top five in the world. The largest chip manufacturers. Still, AMD holds a solid position in the industry, and its x86 processors offer stiff competition for market-leading Intel (INTC). AMD’s stock has seen solid growth this year, and has risen 101% as the year 2020 approaches. Share growth continues to lag behind stable earnings gains as the Corona crisis peaks in Q1. AMD’s Q-top line reached 8 8.8 billion, up 55% from ાયેલા 1.8 billion in the previous quarter and beating the forecast by 10%. Earnings of 37 cents per share were up 220% year-over-year. The company attributed the growth to solid results from the PC, gaming and data center product line, and boasted that it was in its fourth consecutive quarter with> 25% y revenue growth. AMDA last month unveiled a new product for the scientific research market, the Instinct MI100 Accelerator. The new chip is billed as the world’s fastest HPC GPU, and such an x86 server before 10 teraflops performance. Covering AMD for Wells Fargo, Reckers wrote: “We remain positive on AMD’s competitive position to gain a consistent gradual share advantage in PCs. We also believe that AMD’s new Instant MI100 GPU will be available. Deputing Data Center with GPU Strategy and RoCM software. The release of software platforms can become increasingly visible as we move into 20221. Instant Data Center GPU (MI100 / MI120), and the 3D-Gen7NM + EPYC Milan CPU… ”rackers trend supports its buy rating, and its $ 120 target indicates a 30% year-over-year decline in the stock. The analyst’s consensus view on the medium buy AMD reflects some of Wall Street’s remaining caution. The 20 most recent reviews of the stock include 13 buy, 6 hold and 1 sell. AMD stocks sell at $ 91.64, and like Micron, their recent appreciation has closed the gap with an average price target of 94.71. (See AMD Stock Analysis on Tipranx) Western Digital Corporation (WDC) Concluding Wells Fargo’s election on this list is Western Digital, the designer and manufacturer of memory systems. The company’s products include portable storage, including hard disk drives, solid state drives, data center platforms, embedded flash drives and memory cards, and USB thumb drives. The year 2020 was a difficult WDC year, compared to 19% year-to-date. Nevertheless, November and December saw gains in the stock, which was seen as a strong financial 1Q21 report. The earnings report showed revenue of 3.9 billion, down 3% year-over-year, but the EPS net loss was 19 cents, an improvement from the year-ago quarter’s net loss. The improvement in earnings, which beat the forecast by 20%, is significant for investors, and the stock has risen 30% since the quarterly report. The company also generated solid cash flow in the quarter with cash from 111% gradual performance in the quarter. Wells Fargo’s Rackers acknowledge WDC’s troubles in 2020, but nonetheless, believe it is a stock that is worth the risk. “Western Digital 2020 is our hardest constructive call and while we believe that it is difficult to call a boat in Nand Flash (mid / 2h 2021?) And the implementation of WD in enterprise SSD will be interchangeable, our SOTP analysis assumes We continue to believe that Western Digital / / 7 / sh. + Mid-cycle EPS can drive the story; however, we continue to think that this Not only will the AND Flash business, the main driver of the basic side business, recover, with the ability to see improvements implemented in WD’s enterprise SSD, but also a sustained 30% + level of WD’s HDD gross margin may return, ”the Rackers say. Rates WDC with a buy price target of $ 65. Should the target be met, investors can earn 29% in the coming months, where is the rest of the street on this computer storage maker? It looks mostly bullish, because K. Tipranx Analytics w Displays DC as bye. Of the 11 analysts tracked in the last 3 months, 7 are bullish, while 4 are sideways. With a return probability of 9%, the consensus target price of the stock is .4.54.44. (See WDC Stock Analysis on Tiprank) To find good ideas for trading tech stocks at attractive valuations, visit Tiprank’s Best Stocks to Buy, which unites all of Tiprank’s equity insights. Disclaimer: The opinions expressed in this article are those of specialized analysts only. Content is intended for informational purposes only. It is very important to do your own analysis before making any investment.
