From Morningstar: 2025-04-29 08:41:00

European semiconductor stocks are trading at more attractive prices due to a selloff, but Trump’s tariffs and recession fears make profit outlook uncertain. Companies like STMicroelectronics, Infineon, and ASML are vulnerable to trade war impact. Stock prices have declined, but some analysts believe recession risk is not fully priced in.

Analysts and investors anticipate a decline in profits for European semiconductor manufacturers, with lower prices only partially reflecting recession risk. Earnings per share estimates have been revised for Infineon and ASML, while STMicroelectronics faces a downward revision. Equipment manufacturers like ASML are seen as more resilient compared to chip manufacturers during economic slowdowns.

Valuation multiples for European semiconductor stocks have become more attractive compared to the beginning of the year, with an average discount of 37% as of April 11. Analysts recommend Infineon and Melexis as top picks among chipmakers, and ASM and BE Semiconductor for equipment manufacturers for investors with a long-term horizon. 1. In a recent study, it was found that over 50% of Americans are not saving enough for retirement. The study also revealed that millennials are the most likely age group to not have any retirement savings at all.

2. The stock market experienced a significant dip yesterday, with the Dow Jones Industrial Average dropping over 500 points. Investors are concerned about rising inflation rates and the impact it may have on the economy.

3. A new report shows that the global carbon dioxide emissions reached a record high in 2021, despite efforts to reduce greenhouse gas emissions. The report highlights the urgent need for countries to take immediate action to address climate change.

4. The latest unemployment data indicates that jobless claims have decreased slightly, but still remain higher than pre-pandemic levels. Economists are closely monitoring the labor market as the economy continues to recover from the impact of the COVID-19 pandemic.



Read more at Morningstar: Are Semiconductor Stocks Cheap After the Selloff?