When I last wrote about STMicroelectronics (STM), I cautioned
against trying to get too cute about timing a bottom for this leading
chip company, particularly when the shares looked undervalued even on
the assumption of a tougher 2019. The shares have since risen another
15% or so, lagging a broader chip market rally that has surprised me in
its intensity.
I continue to like STM, though
perhaps not quite as much as before given the rising valuation, and I
like the company’s broad leadership across microcontrollers, PMICs,
sensors, MEMS, silicon carbide, and so on, as well as the diverse market
exposure to attractive markets like autos, industrial, IoT, and
imaging. Although I am still concerned that the big second half rebound
that so many chip companies are counting on may disappoint, I still
think STM is a stock worth buying and owning today.
Read more here:
STMicroelectronics Still Counting On A Big Finish To 2019
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