Forget AI chips: These traditional semiconductor stocks are set to soar 70%, says Morningstar

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Infineon Technologies AG Nachrichten

Infineon Technologies AG,NVIDIA Corp,Stmicroelectronics NV

Equity research firm Morningstar also warns that chipmakers associated with AI look overvalued.

Morningstar has urged investors to shift their focus away from the much-hyped AI chip sector. Instead, the equity research firm highlighted four traditional semiconductor makers it considers undervalued, with two picks potentially offering more than 70% upside. Morningstar's note comes amid a surge in demand for AI accelerators, particularly Nvidia 's graphics processing units .

" Morningstar's top picks include Infineon Technologies and STMicroelectronics : Infineon Infineon Technologies , Germany's largest semiconductor manufacturer, stands to benefit from the increasing electrification of vehicles and the rise of electric cars, according to Morningstar.

 

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