Deutsche Bank recommends Semiconductor stocks

Technological investors have definitely enjoyed good profits over the past five years, not least because of FAANG shares that not only surpassed expectations, but surpassed NASDAQ100. Like all the good things, however, it's over, as FANG shares (Facebook, Amazon, Apple, Netflix, and Google) are already under strong political pressure. Some even talk about dividing some of the mega tech giants.

Trade problems and tariffs also burden the semiconductor sector, which has fallen by an impressive 20% from the end of April to the end of May. Despite the recovery of the sector, weak reports have set a "ceiling" on this recovery. And on top of that, the Trump Administration has banned five Chinese companies from buying American items and parts last Friday.

Deutsche Bank remains strongly reserved in the recovery of the sector, but they see some bright spots of hope for certain companies.

BROADCOM

Shares fell under the hammer and anvil as the company lowered its revenue expectations this year. The company has a significant portfolio in the semiconductor sector. The company's end-user output is used in database centers, Internet infrastructure, broadband access, telecommunication equipment, smartphones and communication stations, alternative energy systems, manufacturing automation and many others. Top Wall Street analysts report the company's leadership in mobile phone markets and data centers, and especially in high-frequency and radio products. Wall Street believes that there will be a cyclical recovery in this industry. Deutsche Bank has a $ 315 price target for the company.

Inphi

This is a small-cap company, a competitor in the data center area. Inphi Copr provides high-speed analogue systems and hybrid semiconductor solutions for telecommunication companies and data centers around the world. The company has developed a platform for information transfer, which provides high signal integrity and high speed. Inphi provides solutions to reduce the so-called latency (lag) at computer network centers. The bank's target is $ 55.

INTEL

Blue Chip Company, a longtime leader in the semiconductor industry, has continued to work tirelessly in this direction, focusing more on network and internet solutions for database centers. The company designs, manufactures and sells its integrated, digital products worldwide. The company's solutions apply to computers, notebooks, two-in-one systems, PCs, servers, tablets, smartphones, wired and wireless connectivity products, wearable equipment, manufacturing and retail devices, transport, industry, home. The German bank has a $ 60 price target.

MARVEL TECHNOLOGY

This is one of Deutsche Bank's favorite mid-cap companies. Marvell Technology is one of the leading suppliers of mixed and analogue pro-conductors for a number of companies. They develop products in the sphere of information storage, hard drives, personal computers and servers, ethernet switches and printers. Top Wall Street analysts remain hopeful for the company's performance, especially after buying Cavium in 2017. The bank's target price is $ 27.

NXP Semiconductors

This company is still considered as the top choice for investors. NXP is the fourth-largest semiconductor company in the industry, and it became after merging with Freescale in 2015. This is the number one semiconductor supplier in the automotive industry with a 14% share in the market. NXP continues to gain momentum with its Mobile Payments solutions, The Internet of Things Sphere, Mobile Phone Chargers, LED Lighting. At the moment, stocks are available at a great discount, and this is welcome for Wall Street. Analysts are quite optimistic about the revenue and growth of the company. Deutsche Bank's pricing target is $ 120.

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