A Wall Street steadfast sees a "bumpy yet rewarding ride" for semiconductor stocks successful 2022 and named Nvidia banal its apical pick.
BofA Securities expert Vivek Arya remains bullish connected semiconductor stocks, contempt their caller downturn. He called semiconductors "the caller 'oil' of the rapidly digitizing planetary economy."
As such, semiconductors are playing a captious relation successful a big of blistery areas, helium says. They see unreality computing, artificial intelligence, 5G wireless, precocious driver-assistance systems, autonomous vehicles and the metaverse.
However, macroeconomic factors specified arsenic inflation, rising involvement rates, geopolitics and Covid lockdowns could marque spot stocks volatile successful the twelvemonth ahead, Arya said successful a enactment to clients Monday.
Semiconductor Stocks: Nvidia Stock Top Pick
"Despite the bumpiness, we spot a worthwhile 2022 setup," Arya said.
Nvidia banal is his apical prime among semiconductor stocks. The graphics-chip shaper has the astir upside to expert estimates, Arya noted. Nvidia (NVDA) is seeing secular maturation successful gaming, AI, metaverse and automotive.
He rates Nvidia banal arsenic bargain with a terms people of 375. In day trading connected the stock marketplace today, Nvidia banal slid 1.1%, adjacent 269.50.
Taiwan Semi Closes Year With Solid Growth
Elsewhere among semiconductor stocks connected Monday, Taiwan Semiconductor Manufacturing (TSM) reported better-than-expected income for the period of December. TSM shares climbed 0.7%, adjacent 124.30.
In December, Taiwan Semi's income roseate 32% twelvemonth implicit twelvemonth successful section currency, topping estimates.
For the 4th quarter, Taiwan Semi generated the equivalent of $15.76 cardinal successful revenue. Analysts were expecting $15.64 billion, according to FactSet. Taiwan Semi reports results successful caller Taiwan dollars.
Follow Patrick Seitz connected Twitter astatine @IBD_PSeitz for much stories connected user technology, bundle and semiconductor stocks.
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