Semiconductors are the silicon backbone of the digital revolution. The amount of data we ingest is also increasing exponentially, leading to elevated demand for chips with more processing power.
This secular trend has buoyed the industry, which has posted a six-month return of 3.4%, almost identical to the S&P 500.
Analysts warn that promoter stake sales and stretched valuations could trigger further declines, urging caution as the stock trades below key technical levels.
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at onsemi (NASDAQ:ON) and its peers.
Mid-cap stocks often strike the right balance between having proven business models and market opportunities that can support $100 billion corporations.
However, they face intense competition from scaled industry giants and can be disrupted by new innovative players vying for a slice of the pie.
When Wall Street turns bearish on a stock, it’s worth paying attention.
These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
Bank of America said the rise of alternative AI technologies could weaken Google’s bargaining power with companies like Samsung, which rely on Android but are increasingly exploring new software capabilities.
Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges.
However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.
Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices.
But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues.
Axon Enterprise just saw a key competitor make a huge acquisition. It could threaten Axon's ability to grow into its massive market opportunity going forward.
Motorola Solutions, Inc. (NYSE: MSI) to acquire Silvus Technologies and subsidiaries for $5.0 billion, combining their expertise to provide secure communications worldwide.
The stocks featured in this article are seeing some big returns.
Over the past month, they’ve outpaced the market due to new product launches, positive news, or even a dedicated social media following.
The S&P 500 (^GSPC) is home to the biggest and most well-known companies in the market, making it a go-to index for investors seeking stability.
But not all large-cap stocks are created equal - some are struggling with slowing growth, declining margins, or increased competition.
Generating cash is essential for any business, but not all cash-rich companies are great investments.
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
A company with profits isn’t always a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
