Analog Devices says it’s capitalizing on the strong growth of electrification, digitization, automation, and connectivity.
The Action Alerts Plus team offered comments Wednesday about several stocks that were recipients of good news–much of it indirect..
Discussing lighting technology company Universal Display (OLED) – Get Universal Display Corporation Report, the team noted that corporations with meaningful exposure to China, are “likely to see a near-term headwind” from stringent government regulation. Universal Display is one of those companies.
“Similar to what we saw unfold in the U.S., we suspect the current round of curbs [from the government] will drive pent-up demand that will be realized when these curbs are finally ended,” the AAP team wrote. “This could lead to a far stronger second half of the quarter,” though it’s not a slam dunk.
Meanwhile, electric vehicle maker Rivian Automotive (RIVN) – Get Rivian Automotive, Inc. Class A Report announced Tuesday that it produced 2,553 vehicles and delivered 1,227 during the March quarter. The company said it’s well positioned to meet its guidance for full-year production of 25,000.
“We see this as a modest positive” for Amazon (AMZN) – Get Amazon.com, Inc. Report and Ford Motor (F) – Get Ford Motor Company Report, as both have equity stakes in Rivian, the AAP team said.
“We also see it as confirming the need for charging stations.” That’s good for electric vehicle charging station network ChargePoint (CHPT) – Get ChargePoint Holdings, Inc. Class A Report, the team said.
Finally, executives of semiconductor maker Analog Devices (ADI) – Get Analog Devices, Inc. Report spoke Tuesday about how it’s capitalizing on the strong growth of electrification, digitization, automation, and connectivity. And the company lifted its long-term annual revenue growth target to 7% to 10%.
That’s good news for chip stocks Nvidia (NVDA) – Get NVIDIA Corporation Report , Marvell Technology (MRVL) – Get Marvell Technology, Inc. Report, and Advanced Micro Devices (AMD) – Get Advanced Micro Devices, Inc. Report; ChargePoint; and Ford.
