2 Semiconductor Stocks Wall Street Predicts Will Rally by More Than 35% By StockNews

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© Reuters. 2 Semiconductor Stocks Wall Street Predicts Will Rally by More Than 35%

On account of surging global demand for semiconductors, semiconductor chip makers are seeing rising revenues and profits. And potential federal investments and industry initiatives should drive production up, which is causing bullishness about the industry among investors and analysts. In fact, Wall Street analysts expect the prices of semiconductor stocks Semtech (NASDAQ: (NASDAQ:)) and Alpha and Omega (NASDAQ:) to rally by more than 35% in the near term. So, let’s discuss.The demand for semiconductors is soaring, propelled by the economic recovery and rapid digital transformation. The high demand has helped 10 of the world’s biggest chip manufacturing companies generate a record, aggregate $22.75 billion in revenues in the first quarter of 2021.

The foundries have been raising their wafer prices and adjusting their product mixes to ensure profitability. As a result, the chip giants’ profit margins are increasing significantly.

Given the industry’s promising growth prospects, Wall Street analysts expect semiconductor stocks Semtech Corporation (SMTC) and Alpha and Omega Semiconductor Limited (AOSL) to rally more than 35% in the near term.

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