Bank of America Securities predicts a Q4 rebound for semiconductor stocks, including Nvidia, Broadcom, and KLA Corp., driven by easing seasonal headwinds and increased cloud infrastructure spending.

Bank of America Securities analysts predict a potential rebound for semiconductor stocks in Q4 due to easing seasonal headwinds, with Nvidia, Broadcom, and KLA Corp. identified as top outperforming stocks. The SOX index, which has faced challenges due to volatility and economic concerns, has historically seen average returns of 7-10.5% in the fourth quarter since 2010. Analysts believe larger chipmakers with exposure to the data-center market, such as Nvidia and Broadcom, would be in a stronger position to gain as cloud computing giants like Microsoft and Amazon are expected to increase spending on infrastructure.

August 12, 2024
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