Zhitong Finance APP learned that Bank of America predicts that in 2021-22, the semiconductor sector will grow by 20% and 10%, respectively, including AMD (AMD.US), Broadcom (AVGO.US), Teradyne (TER.US), and Yade Companies such as Connaught (ADI.US) and Qorvo (QRVO.US) have lags behind the Philadelphia Semiconductor Index so far this year, but it is not expected that it will be difficult to catch up and have great upside potential.
In a report released last week, analyst Vivek Arya predicted that AMD’s server market share will rise from the current 10-11% to the previous peak of 25%, when earnings per share will reach $4, compared to the previously expected 2022 The annual earnings per share were US$2.65. AMD's supercomputing business has grown nearly 5 times this year, with a market share of nearly 10%.
Bank of America believes that Broadcom’s development in data centers, cloud computing, and 5G will drive the company’s sales and earnings per share compound annual growth rate of more than 10% in 2023, with a 75% gross margin and 55% Operating profit margins maintain a leading position. Free cash flow is expected to hit 50% or more, and it may increase shareholder value through share repurchases. The Bank of America report was published before the Federal Trade Commission accused the company of an illegal monopoly.
Arya believes that Teradyne has made good use of Apple's (AAPL.US) insourcing, gained nearly 25% of the sales share, and will continue to benefit from high-end products such as the Mac series and AR/VR. Teradyne is a leader in the field of semiconductor testing, but its performance so far this year is about 3000 basis points behind the major wafer manufacturing equipment suppliers.
With the continuous improvement of the automotive product portfolio, Analog Devices has overcome the resistance faced by the traditional automotive industry. Arya also noted the strong strength of Analog Devices in the 5G field, and believes that the US and European markets will continue to grow strongly. Driven by the high growth trend in electric vehicle infrastructure and medical care, more than 50% of the company's products are concentrated in these areas, and sales will achieve accelerated growth. Analog Devices' forecast of 7% revenue growth in 2022 may be quite conservative.
Bank of America predicts that Qorvo will become one of the main beneficiaries of the 5G era. This year, Qorvo’s 5G device sales will increase by 100%, and by 2022 it will increase by 40%. In the second half of this year, Qorvo's 5G base station construction speed should be further accelerated.