Forget the megacaps. Bernstein likes these global stocks from an 'unloved' corner of tech

  • 📰 CNBC
  • ⏱ Reading Time:
  • 21 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 12%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

The firm's analysts like semiconductor sector and another area it says is the 'cheapest' and 'the most unloved it has been in last 5 years.'

High interest rates are usually bad for tech stocks, and they're now a key macroeconomic risk for "expensive" ones in particular — but two parts of the sector are in a good position, according to Bernstein. The firm's analysts like the semiconductor and Chinese internet areas, even though tech valuations in Asia are more sensitive to bond yields than they have been in the last 10 years, they said in an Oct. 27 note.

"Given the maturity of online penetration in key verticals, and user and time spent growth has slowed, we've increasingly recommended stocks where other variables have driven the medium-term growth outlook," the analysts wrote. They added that they prefer video games to e-commerce. As for semiconductors, Bernstein said it likes TSMC , as it benefits from both secular and cyclical tailwinds.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines