While well-known mega-caps like Intel and Taiwan Semiconductor deservedly get much of the attention in the space, there are small-cap and mid-cap equipment makers that also have fallen out of favor and, like so many tech stocks, have seen their share prices and ratings slide.
Analysts Brian Chin, Patrick Ho and Denis Pyatchanin at Stifel recently interviewed executives of several companies operating in the “semiconductor manufacturing (process control and test), high-performance computing, and industrial/warehouse automation sectors.” These smaller companies operate upstream of the industry’s big players and “generally reiterated strong short-and-longer term outlooks.”
Based on these conversations, Stifel’s analysts think the market may have de-rated these stocks twice and that when market sentiment reverses, “we see an opportunity for a double re-rate, with kickers tied to improving sector as well as stock-specific sentiment.”
The post Why These 5 Semiconductor Equipment Stocks Now Have Huge Potential Upside originally appeared at 24/7 Wall St.