The semiconductor industry has bifurcated into two worlds over the last years. Names exposed to AI have generally seen strong growth and strong share price performances. While other names which don’t have sufficient AI exposure have largely been going through a typical semi correction after the electronics boom of the covid years.
In this article, we’ll take a close look at a good quality semi company and with an attractive long term outlook, but who’s share price has been hammered as it has been working its way through its trough. So we basically think that the entry point is looking attractive here and that this is a stock which can become a multi-bagger for long term investors due to its attractive growth outlook. And we see a high IRR in the coming years when the cycle recovers.
This will be a deep dive on both the company and its niche within the semi industry. We’ll also do a more quantitative analysis of why the cycle should be about to turn for this name. And we’ll give the best insights from a variety of industry insiders such as customers, supply chain partners and former managers to get a deep understanding of this part of the semi industry and the company. So there will be plenty of background again on how this industry operates with insights and data. It’s a big report. Finally, we’ll also do an analysis of the financial outlook and valuation for the key companies involved.