Zacks Industry Outlook Highlights Independence NVIDIA and STMicroelectronics

For Immediate Release

Chicago, IL June 8, 2023 Today, Zacks Equity Research discusses NVIDIA Corporation NVDA and STMicroelectronics N.V. STM.

Industry: Semiconductor - General

Link: https://www.zacks.com/commentary/2104884/2-semiconductor-stocks-looking-good-despite-challenges

Companies in the Semiconductor General industry are at the forefront of the ongoing technological revolution based on HPC, AI, electrified and automated driving, IoT and so forth. The semiconductors they produce enable the cloud to function and help analyze the data into actionable insights that can be used by companies to operate more efficiently.

The pandemic hastened the ongoing digitization of every aspect of life. But this brought forward several years of investments, weakening the prospects for subsequent quarters. The major end markets for semiconductors (excluding automotive) have been in a state of imbalance between demand and supply, a situation that hasnt completely corrected. With the financial tightening increasing economic uncertainties, it has become notably harder to predict the impact on this industry. This in spite of the fact that supply chains continue to adjust to increase reliability, build some inventory, reduce dependence on China, and onshore projects with national security implications. All these factors are contributing to the uncertainty and as a result, the valuation is also looking rich.