That's as the chip industry often undergoes 10 quarters of upside after experiencing a downcycle, a pattern that has just begun.
However, chip stocks (SOX) change direction 6-9 months ahead of cycle inflection, so semis could potentially peak sometime around 2H25, or another year+ from now," Bank of America said.
Bank of America sees major upside potential for both, holding a $1,500 and $1,680 price objective on each.
"Industrial/auto chip stocks are less crowded and offer diversification away from AI, with easier compares going into CY25E," the bank said.
AdvertisementBank of America holds a price objective of $890 and $650.
Persons:
—, That's, upcycle
Organizations:
of America, Nvidia, Broadcom, NXP Semiconductors, KLA Corporation, Service, Bank of America
Locations:
petering, 2H25, CY25E