Core Viewpoint - Analog chips have largely missed out on a broader semiconductor rally over the last two years, but this trend may be on the verge of changing [1] Industry Summary - The semiconductor industry has experienced a significant rally, yet analog chips have not participated in this growth [1] - There is an indication that the market dynamics for analog chips may be shifting, potentially leading to increased demand and investment opportunities [1]

A BlackRock fund packed with South Korean chipmakers pulled in its biggest inflow on record on Wednesday as investors doubled down on Asia’s semiconductor rally https://t.co/gnDLYMF7sq ...

Group 1: Semiconductor Sector Overview - The PHLX Semiconductor Sector index increased by 10.14% year-to-date, indicating a strong performance in the semiconductor industry, reinforcing Cantor Fitzgerald's view that the sector is a must-own [1] - Cantor's analyst C.J. Muse is evaluating the outlook for major chip stocks including Advanced Micro Devices (AMD), Qualcomm (QCOM), and Microchip Technology (MCHP) ahead of their earnings results [1] Group 2: Advanced Micro Devices (AMD) - AMD is expected to outperform in Q4, with Benzinga's Edge Rankings placing it in the 92nd percentile for momentum and 86th for quality, reflecting its strong performance [2] - Over the past year, AMD stock surged by 115.52%, closing at $246.27 after a 4.03% increase on Monday [2] Group 3: Qualcomm (QCOM) - QCOM's outlook for 2026 may weaken, with Benzinga's Edge Rankings placing it in the 58th percentile for quality and 19th for momentum, indicating mixed performance [3] - Over the past year, QCOM stock declined by 10.34%, closing at $152.63 after a 0.69% increase on Monday [3] Group 4: Microchip Technology (MCHP) - Microchip is expected to modestly beat earnings and guidance, supported by two positive pre-announcements and performance above seasonal trends, making it a preferred analog stock play [4] - In early January, Microchip raised its fiscal Q3 2026 revenue outlook to approximately $1.185 billion, exceeding its previous guidance of $1.109–$1.149 billion [5] - Over the past year, Microchip stock climbed by 49.41%, closing at $78.08 after a 2.85% increase on Monday [6] Group 5: Intel and Micron Performance - Intel reported fourth-quarter revenue of $13.67 billion, surpassing Wall Street expectations of $13.37 billion, with adjusted earnings of 15 cents per share, exceeding the consensus of eight cents [7]

Core Viewpoint - Wells Fargo anticipates a new phase in the semiconductor rally, expecting significant gains ahead, and has upgraded KLA Corp and Lam Research while maintaining a top pick on Applied Materials [1][2]. Semiconductor Industry Outlook - Wells Fargo recognizes that semiconductor capital equipment stocks have become a "consensus long" and have outperformed year-to-date, yet still expects demand indicators to show tighter supply/demand dynamics for logic and memory, supporting further wafer fab equipment (WFE) growth into 2027 [2]. Company-Specific Insights - KLA Corp specializes in semiconductors and electronics, producing integrated circuits, wafers, and printed circuit boards, all of which are in high demand due to the AI boom. The upgrade reflects expectations of rising process complexity, particularly with the upcoming mass production of 2nm transistors [5]. - Wells Fargo has raised KLA's price target significantly from $1,250 to $1,600, while also increasing its WFE estimate by an average of 10% and lifting its 2026 and 2027 forecasts above market expectations [6].