Amid a recent downturn in semiconductor stocks, Jefferies has identified three "top picks" in the sector, which it says present investors with a buying opportunity.
The investment bank identified Dutch semiconductor toolmaker ASML and European suppliers to the chip making industry ASM and VAT as its top picks.
This projected surge in demand is expected to positively impact a wide range of companies within the semiconductor industry.
Jefferies expects "most semiconductor companies, including foundries, chip vendors, and front-end equipment suppliers, to beat and raise in coming quarters."
The current downturn is not unprecedented in the cyclical semiconductor industry.
Persons:
Jefferies, — ASML, Janardan Menon, SOXX
Organizations:
iShares Semiconductor, ASM, Jefferies, SOX Semiconductor
Locations:
China, U.S