2 Semiconductor Stocks to Buy Amid the Automotive Chip Shortage, and 1 to Watch

The empty lots at new car dealerships have attracted the attention of most Americans regardless of whether they pay attention to the semiconductor industry. Thanks to a shortage of semiconductor chips, automobile factories are being temporarily idled, and used car prices have shot higher amid the rising demand for cars.

However, the shortage of such chips has placed the focus on some semiconductor companies that previously received little attention, such as NXP Semiconductors (NASDAQ:NXPI), Texas Instruments (NASDAQ:TXN), and GlobalFoundries (NASDAQ:GFS). Let’s take a closer look at these three companies.

A close-up of a semiconductor designed for automotive applications.

Image source: Getty Images.

Understanding the automotive chip shortage

The semiconductor shortage has affected all tech-related industries. Nonetheless, the nature of the chip shortage differs in the automotive industry.

Consumers who have experienced a decades-long upgrade cycle often pay little heed to less advanced chips. However, a robust market for larger, slower chips remains, and the automobile sector

Read More

7 Stocks to Buy as Used Car Prices Hit a Perfect Storm in 2022

Although cryptocurrencies have generated substantial intrigue and controversy, it may not be the most absurd bull market of stocks to buy right now. Instead, this dubious honor could belong to the used car market.

If you look at the Manheim index for used car prices, its upward trajectory exceeds that of benchmark equities indices and even certain cryptos. Thus, automotive-related stocks to buy have been big winners in the year recently passed.

However, the utterly ridiculous skyrocketing of used vehicles – which in turn accelerated prices of new cars as well – creates massive risks. Basically, what goes up must come down. Thus, analysts at KPMG warn that once global supply chains sort themselves out and the economic machinery starts churning again, used car prices could plummet, perhaps by 20% to 30%. No question exists that auto-related stocks to buy are incredibly speculative at this point.

InvestorPlace – Stock

Read More

Top 3 Automotive Stocks For 2022

The global automotive industry is at an interesting crossroads heading into 2022. Supply chain constraints have reduced the number of new vehicles available for purchase, which has certainly had a negative impact on earnings for some of the major players in the industry. With that said, some analysts believe that the semiconductor shortage won’t get any worse going forward. If automakers are able to produce even a fraction more than the number of vehicles manufactured in 2021, we could see some big earnings coming out of the top names in the sector. Maybe you interested sommerseo 2022.

Investors should also consider the rapidly increasing demand for electric vehicles that could drive profits for many automotive companies next year and beyond. The entire industry will undergo a massive shift as this technology continues to evolve, and the fact that President Joe Biden will be investing billions to accelerate the widespread

Read More

7 Auto Stocks to Buy as Price Relief Might Not Arrive Soon

It’s perhaps the most hated bull market in America that seemingly defies all expectations (and desires to be honest). Following the severe disruption of the novel coronavirus pandemic, several markets went haywire to the upside, including most conspicuously the used-car sector. But with media reports stating that wholesale prices for secondhand vehicles have been moving lower from their highs, this boded poorly for auto stocks.

Until, that is, the situation started boding positively again for auto stocks. What gives? Another false-positive? In this particular case, seemingly contrasting events are actually both true. As CNN pointed out, lower wholesale prices may not translate to lower consumer costs because dealerships these days rely less on wholesale and more on directly acquiring inventory from private sellers.

More critically, the semiconductor crisis that has resulted in an ongoing computer chip shortage that frustratingly ebbs and flows has contributed to production shortages. In a rather

Read More