Semiconductor Stocks Historically Outperform Following 5% Selloff In A Day: Bank Of America
Portfolio Pulse from Adam Eckert
Semiconductor stocks, tracked by the IShares Semiconductor ETF (NASDAQ:SOXX), experienced a significant selloff this week, driven by geopolitical concerns and comments from U.S. leaders. Bank of America (BofA) suggests that this sector historically outperforms following such selloffs, with potential gains of 19% in three months and 28% in six months. BofA recommends focusing on fundamentals and highlights Nvidia (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO), Arm Holdings (NASDAQ:ARM), ON Semiconductor (NASDAQ:ON), and Micron Technology (NASDAQ:MU) as attractive investments.
July 18, 2024 | 5:48 pm
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POSITIVE IMPACT
Arm Holdings Plc (NASDAQ:ARM) is identified by BofA as one of the best ideas in the semiconductor sector, particularly in computing and AI.
Arm Holdings' strong fundamentals in computing and AI, as noted by BofA, suggest a potential positive short-term impact.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 60
POSITIVE IMPACT
Broadcom Inc (NASDAQ:AVGO) is recommended by BofA as a top pick in the semiconductor sector, particularly in computing and AI.
Broadcom's strong position in computing and AI, as highlighted by BofA, indicates potential for a positive short-term impact.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 70
POSITIVE IMPACT
Micron Technology Inc (NASDAQ:MU) is recommended by BofA for its attractive valuations, despite the recent selloff in semiconductor stocks.
Micron Technology's attractive valuations, as noted by BofA, suggest a potential positive short-term impact.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
Nvidia Corp (NASDAQ:NVDA) is highlighted by BofA as one of the best ideas in computing and AI, despite the recent selloff in semiconductor stocks.
BofA's positive outlook on Nvidia, especially in the AI sector, suggests a potential rebound and strong performance in the short term.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 80
POSITIVE IMPACT
ON Semiconductor Corp (NASDAQ:ON) is highlighted by BofA for its attractive valuations, despite the recent selloff in semiconductor stocks.
ON Semiconductor's attractive valuations, as highlighted by BofA, indicate potential for a positive short-term impact.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
The IShares Semiconductor ETF (NASDAQ:SOXX) experienced a significant selloff this week, driven by geopolitical concerns and comments from U.S. leaders. BofA suggests that the sector historically outperforms following such selloffs.
BofA's historical data indicates that semiconductor stocks, tracked by SOXX, tend to rebound strongly after significant selloffs. This suggests a potential positive short-term impact on SOXX.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100