As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the analog semiconductors industry, including Himax (NASDAQ:HIMX) and its peers.
Exciting developments are taking place for the stocks in this article.
They’ve all surged ahead of the broader market over the last month as catalysts such as new products and positive media coverage have propelled their returns.
ON Semiconductor has recently seen a significant surge, gaining over 47% in the last three months and outperforming the index's 34% rise, and it currently trades above its 50-day moving average of $47.56.
Semiconductors are the silicon backbone of the digital revolution. The amount of data we ingest is also increasing exponentially, leading to elevated demand for chips with more processing power.
This secular trend has buoyed the industry, which has posted a six-month return of 3.4%, almost identical to the S&P 500.
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at onsemi (NASDAQ:ON) and its peers.
Mid-cap stocks often strike the right balance between having proven business models and market opportunities that can support $100 billion corporations.
However, they face intense competition from scaled industry giants and can be disrupted by new innovative players vying for a slice of the pie.
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran. The Wall Street Journal said senior Iranian officials had signaled a willingness to restart stalled nuclear talks, on the condition that Washington refrain from joining Israel's ongoing strikes.
This development triggered a significant decline in oil prices, easing inflation concerns.
Also, it is possible some investors were buying the dip following the sell-off at the end of the previous week.
When Wall Street turns bearish on a stock, it’s worth paying attention.
These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
