This post was originally published on this site
Kumar also raised the firm’s price targets for ON Semiconductor to $85 per share and Impinj to $140 per share.
Looking at the semiconductor market as a whole, the analyst stated the posture is constructive going into the prints this quarter, although “we are still in the middle of a fundamental bottoming process. In addition, Kumar said the China reopening offers a tailwind.
On AMD, the analyst said it is “making good progress on its retail PC inventory clearing process, which appears to be track for normalized inventory levels in 1H23.”
“We believe that AMD will exit the March 2023 quarter with inventories largely cleared out, which is on time with management’s plan,” wrote Kumar.
For ON, he declared that the firm remains steadfast in its belief that ON is likely to beat December estimates and guide above March quarter estimates.
“ON has some top line flexibility when it comes the roll off of some of its legacy business. We estimate the legacy roll off in 2023 is worth between $400M-$450M and is dependent on customers’ ability to source alternatives. ON will not leave its customers hanging here in our view,” argues Kumar.
Finally, for Impinj, the analyst noted the company’s preannouncement of positive preliminary earnings and revised its model to reflect the preannouncement and tailwinds from the logistics segment.
Kumar highlighted the key drivers for the company’s decision to revise estimates as its record backlog and Wafer upside from their supplier.
By Sam Boughedda
