Nvidia, ON Semi, AMD Among Bank of America’s Top Chip Stocks

It’s been a rough 2022 for semiconductor stocks amid fears of a sharp economic slowdown that would depress chip demand.

The PHLX Semiconductor Sector index has dropped 22% year to date.

But Bank of America analysts see some reasons for optimism.

“Macro factors can enhance stock volatility,” they said in a commentary. But “the recent 36% peak-to-trough [price-to-earnings-multiple] contraction in the semiconductor index (versus a 27% downturn historically) already reflects a medium-sized recession,” the analysts said.

Source: https://www.thestreet.com/investing/nvidia-on-semi-amd-among-bank-of-america-chip-stocks?puc=yahoo&cm_ven=YAHOO&yptr=yahoo