The Dau’s dog There is an old investment strategy that targets this year’s losers as potential winners for the next. The idea is that cyclical stocks such as the Dow components ebb and flow over time; Buying them when they are low should provide a good return over time. Technology stocks are also cyclical, ebbing and flowing with economic conditions, suggesting that the dog theory can be applied to them. Since 2025 is expected to create an economic tailwind as low interest rates combine with incoming President Trump’s business-friendly policies, this is a good year to anticipate the cyclone. Semiconductor technical stocks like Global Foundries NASDAQ: GFS, Microchip Technologies NASDAQ: MCHPAnd Intel NASDAQ: INTC, to redo.
Global foundries fall 30% in 2024: rebound has begun
Global Foundries Today
(Up to 06:03 PM)
- 52-week range
- $35.85
▼
$62.61
- P/E ratio
- 33.49
- Price target
- $50.21
Price action in GlobalFoundries fell more than 33% to year lows but has started to move higher. The stock shows solid support at historic lows and the potential for losses and further recovery in 2025. The drop in price action was due to a contraction in business which is expected to end soon. The forecast is for growth to resume in 2025 and take advantage of growth on the bottom line. Results from Consistent with Q3 forecastOutperformance was compounded by contracting but less than expected, and guidance. The company’s guidance is for revenue to rise sequentially to $1.825 billion, down just 1% from last year, driven by existing customers and new design wins.
Among the opportunities for Global Foundries and its investors are market share gains in critical end markets such as automotive, IoT, mobile, and data centers. The company’s operating footprint does not include China or Taiwan, which minimizes the political risk that comes with them. With leaders in the United States and European Union focusing on boosting domestic production, it is a natural choice and already benefits from this trend. The company was awarded $1.5 billion as part of the CHIPs Act funding and more than $2 billion in total awards to boost local manufacturing in New York and Vermont. The money will be used to expand and upgrade existing ones Semiconductor manufacturing Facilities and build a new one on existing property.
Microchip falls 40%: confirms the long-term trend
Microchip technology today
(Up to 06:03 PM)
- 52-week range
- $57.96
▼
$100.57
- Dividend yield
- 3.07%
- P/E ratio
- 41.46
- Price target
- $90.95
Microchip technology fell more than 40% to its 2024 low. Like global foundries, this semiconductor manufacturing business is facing contraction related to end-market normalization and economic headwinds. However, like global foundries, it is expected to return to growth soon, and the business recovery is predicted to be strong.
The Analyst consensus Marketbeat reports that 17% top-line growth is expected next year and results will be leveraged on the bottom line. The company’s earnings are expected to grow 65% on increased operating leverage, and consensus may underestimate the rebound due to a revisionist trend. 100% of analysts have cut their estimates so far in calendar Q4 and set the bar low. With all end markets expected to grow and become tailwinds in 2025, the potential for outperformance is high.
The price action in MCHP stock is consistent with an outlook for a rebound. The market is down 40% from its highs but showing support at a critical uptrend line.
Intel falls more than 50% in 2024; Down 65% from its highs, with nowhere to go but up
Intel today
(Up to 06:03 PM)
- 52-week range
- $18.51
▼
$51.28
- Dividend yield
- 2.39%
- Price target
- $30.04
Intel has struggled over the years with its sheer size and lost relevance in an era of rapidly evolving technology. However, as bad as it may sound, the company is still a leader Annual income And among the largest semiconductor companies by market cap
Its business is deep in PCs, which will be among the last to benefit from AI upgrades, but also includes data center and edge computing.
The company has headwinds but is well positioned for a comeback. The 2025 outlook is for revenue to grow by more than 5% in 2025 and resume profitability. One of the drivers of long-term success is the $7.86 billion CHIPS Act award to boost local production. The company intends to use the funds to expand and expand domestic production.
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