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Even though a global semiconductor supply crunch has negatively impacted the auto manufacturing industry, massive government and private investments to boost semiconductor production should gradually redress the situation. Moreover, traditional automakers might be the biggest beneficiaries based on their broad portfolio of vehicles and market dominance. According to a report by Market Research Future, the automotive industry is expected to grow at a 4.5% CAGR between 2021 – 2028. Therefore, both HMC and F should benefit.
F’s shares have gained 59.7% in price over the past nine months, while HMC has returned 12.4%. Also, F’s 78.6% gains year-to-date are significantly higher than HMC’s 9%. Moreover, F is the clear winner with 28.3% gains versus HMC’s 0.6% returns in terms of the past six months’ performance.
