“Semiconductors” continue to massively underperform the broader market this year, but Quint Tatro is convinced the demand for chips will continue to increase. He’s the Founder and Chief Investment Officer at Joule Financial.
Tatro says buy On Semiconductor stock
It’s company that’s very dominant within the semiconductor space in the automobile environment. Despite the waning consumer, we still have a shortage of automobiles. So, I believe we’ll see the demand for chips continue to increase.
He’s also bullish on the Phoenix-headquartered company because the management expressed confidence last month that the supply constraints were finally starting to ease.
Why else does he like On Semiconductor
According to the Joule Financial expert, he likes On Semiconductor for its strong fundamentals. The Nasdaq-listed firm reported better-than-expected results for its fiscal first quarter in May.
On Semiconductor is a company with relatively attractive fundamentals. 13 times forward earnings, excellent balance sheet, and it focuses on a space that I think is ripe for a turn around that we’re going to see in the supply chain.
On June 21st, the chipmaker will replace IPG Photonics Corp in the S&P 500 index. Wall Street, on average, sees a 20% upside in the stock at present.