With semiconductor stocks bouncing back from their recent lows of stock market correction, one Wall Street analyst has assembled a portfolio of high-conviction names that investors should consider.
BofA Securities analyst Vivek Arya created a grouping of top semiconductor stocks under the acronym MANGO. The MANGO stocks include Marvell Technology (MRVL), Advanced Micro Devices (AMD), Analog Devices (ADI), Broadcom (AVGO), Nvidia (NVDA), GlobalFoundries (GFS) and Onsemi (ON). Arya combined the three tickers that start with A as one letter in the acronym.
The MANGO portfolio is a “crude attempt at constructing a FANG equivalent in semis,” Arya said in a note to clients Friday. The FANG stocks are leading internet stocks including Facebook parent Meta Platforms (FB), Amazon.com (AMZN), Netflix (NFLX) and Google parent Alphabet (GOOGL).
The Philadelphia semiconductor index, known as SOX, has underperformed the S&P 500 index this year because of chip cycle worries, Arya said. But he remains positive on the sector because of long-term secular growth opportunities. Year to date, through Friday’s close, the SOX is down 10.7% while the S&P is down 4.7%.
Semiconductor Stocks On IBD Lists
“The structural importance of semis to the rapidly digitizing global economy cannot be overstated,” he said. Arya prefers semiconductor stocks exposed to artificial intelligence, cloud computing, electric vehicles, enterprise and telecom markets.
The MANGO semiconductor stocks are in the right markets and have solid demand visibility and execution, he said.
Some of the MANGO stocks are on IBD stock watchlists.
AMD stock is on the IBD 50 list of top-performing growth stocks as well as the Sector Leaders list. Broadcom and Nvidia are also on the IBD 50 list. Nvidia stock is on Leaderboard and Sector Leaders as well. And GlobalFoundries is on the IPO Leaders list.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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