Follow-Through Is The Next Big Challenge For ams AG

ams AG (OTCPK:AMSSY) (AMS.S) has given investors quite the ride over the last year or so, with the shares still down over 50% over the past year (far below the almost flat performance of the SOX), but up more than 60% since the time of my last article on a better first quarter, strong guidance for the second quarter, and several content wins in the Android smartphone market.

I don’t really expect trading in ams shares to really be any calmer any time soon. Not only are there risks to Apple (AAPL) volumes from the next phone cycle (which will begin later in 2019) and another possible inventory correction, but there’s still uncertainty about exactly which components ams is winning with these Android vendors, not to mention what those volumes will look like. On top of that, there’s still meaningful uncertainty about the pace of the recovery in demand for auto and industrial markets, and oh by the way, also ongoing competitive risks as companies like STMicro (STM), Sony (SNE), and Infineon (OTCQX:IFNNY) try to elbow their way into the 3D sensing market.

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Follow-Through Is The Next Big Challenge For ams AG