|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||5.73 - 5.79|
|52 Week Range||4.00 - 6.07|
|Beta (5Y Monthly)||0.86|
|PE Ratio (TTM)||8.94|
|Forward Dividend & Yield||0.33 (5.77%)|
|Ex-Dividend Date||Mar 29, 2021|
|1y Target Est||N/A|
(Bloomberg) -- A global semiconductor shortage has upended the supply of everyday devices from smartphones to gaming consoles to tech-dependent cars. With companies warning the issue may last into the second half, the fallout threatens to weigh on share prices for months to come.Since news broke in November that Apple Inc. faced a shortage of chips for its latest iPhone, warnings about the impact have been coming thick and fast. Truckmaker Volvo Group and electric-vehicle company Nio Inc. last week joined a long list of auto producers that have idled assembly lines.The lack of chips has been caused by booming demand for tech gear, in large part because of the pandemic, and winter weather in Texas and a fire in Japan have added to the problem. It’s been a boon for companies such as Applied Materials Inc. and Lam Research Corp. that produce the equipment semiconductor makers need to boost output.Here’s a look at the companies with the most at stake as the global chip shortage rages on, and how their stocks have been affected:AutomakersAuto stocks have come roaring back from their pandemic lows. Now both the chip shortage and concern over a resurgence of the coronavirus pandemic have pulled a Bloomberg index of global manufacturers down 14% from its Jan. 25 record high.Volvo Group slumped 7% Tuesday after saying it will have to suspend production due to the lack of semiconductors, while China’s Nio slid 4.8% Friday when it said it will stop output at a factory in Anhui province.A fire March 19 at a Japanese factory operated by Renesas Electronics Corp., one of the biggest makers of automotive chips, hit the industry hard. It triggered a 6.7% drop in General Motors Corp. shares over three days last week. In Japan, shares of Toyota Motor Corp., which touched a six-year high March 18, slumped 6.1% in the subsequent four sessions.“The automotive sector has arguably experienced the greatest level of disruption, with more and more OEMs either slowing production or closing manufacturing plants on a temporary basis,” said Thomas Fitzgerald, a fund manager at EdenTree Investment Management Ltd., referring to original equipment manufacturers.China’s Geely Automobile Holdings Ltd. slid 19% over three days last week after reporting disappointing earnings. Daiwa Securities cited the chip shortage in downgrading the stock and cutting estimates for this year and next. China is dealing with unrelated chip-supply issues of its own.READ, Chip Shortage May Put Market-Beating Rally at Risk: Taking StockSmartphones, Consumer ElectronicsBeyond the auto industry, it’s harder to tease out the stock market impact on companies that depend on semiconductors. Shares of Apple, for example, didn’t react in November to the impact of the shortage, and they’re up more than 5% since then. Smartphone maker Xiaomi Corp. slumped 4.4% Thursday after warning that parts shortages could slow its growth for the next few quarters.One positive aspect of the chip shortage: With demand for consumer electronics as strong as it is, it gives companies the power to raise prices and pass on higher costs, said Neil Campling, an analyst at Mirabaud Securities. “The share prices haven’t reacted particularly negatively to the news, and I think that’s because the important part is that you’re seeing a snapback in demand for these goods,” he said.Lenovo Group Ltd. said in August that its profit margins took a hit from the chip shortage, and in November it said it couldn’t fill all customer orders due to the lack of components. Still, demand for the company’s laptops is soaring because of purchases by people working at home, and the stock has doubled since August.Sony Corp. said last month it might be unable to fully sate demand for its new gaming console in 2021 because of production bottlenecks. The stock touched a 21-year high in February, though it’s dipped 8.2% since then.While Samsung Electronics Co.’s foundry business making chips for other companies benefits from the favorable supply-demand equation, the South Korean firm also has its own line of consumer products that are hurt. Samsung this month warned of problems, including the possible cancellation of the launch of its new Galaxy Note, one of its best-selling smartphone models.Makers of networking equipment also have been feeling the pinch. Analysts at Oddo BHF flagged a DigiTimes report that the lead times for deliveries of networking chips are extending to as long as 50 weeks, suggesting that the chip shortage has also reached the networking segment and will likely last into early next year.ChipmakersWhile automakers have struggled, the flip side of the semiconductor shortage is that the companies supplying those chips could see a boost to their business. Most semiconductor companies should report strong results for the first quarter and give good guidance for the second, said Janardan Menon, an analyst at Liberum Capital Ltd.“This is all great news for the semiconductor vendor,” Liberum’s Menon said by phone. “This kind of tightness -- of capacity utilization, rising prices, very, very strong demand -- invariably means that their results are very, very strong.”However, Menon cautioned that share prices may not follow, given the market is now worried that the peak of the semiconductor cycle is approaching.European auto chip supplier Infineon Technologies AG is up 12% for the year while STMicroelectronics NV has gained just 5.6%. In the U.S., Texas Instruments Inc. is up 15%, while NXP Semiconductors NV and ON Semiconductor Corp. have done better, up 25% and 24% respectively, versus the Philadelphia Semiconductor Index’s 11% rise.There are also broader winners from the shortages in the semiconductor industry, with chip foundries such as leader Taiwan Semiconductor Manufacturing Co. running at close to full capacity to try to keep up with the surge in demand. TSMC shares are down 12% from their record set Jan. 21 but are still up 11% on the year.Semiconductor-Equipment ManufacturersThe makers of equipment used to produce semiconductors are benefiting from the supply crunch as chipmakers rush to add capacity to their factories and governments concerned about national security risks are looking at measures to encourage local production. The combination has created a spending environment that some analysts say will benefit the industry for years.Applied Materials, the biggest equipment maker, has seen its shares double in the past six months, while Lam Research has gained 77% over the same period, nearly twice the return for the Philadelphia semiconductor index. ASML Holding NV is up 74%.TSMC committed to as much as $28 billion in capital spending in 2021, up from $17 billion the year before, while Intel Corp. unveiled a plan on March 23 to pour billions of dollars into production facilities.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Japan's likely decision to declare a state of emergency in the Tokyo area will most probably trigger a contraction in January-March, analysts say, adding to the headache for policymakers struggling to cushion the blow to the economy from the pandemic. Media reported on Monday that preparations were being made for a state of emergency that would take effect by Friday. While the restrictions will be far less sweeping than those during last year's nationwide state of emergency, analysts expect them to inflict severe damage on consumption.
With the Chinese electric vehicle stocks rallying hard in 2020, investors are jittery over the scope for further upside. The stocks have pulled back recently, and an analyst at Daiwa Securities said it may be time to take profits.The EV Analyst: Kelvin Lau initiated coverage of Nio Inc - ADR (NYSE: NIO) with a Buy rating and $59 price target.The analyst initiated coverage of Xpeng Inc - ADR (NYSE: XPEV) shares with a Sell rating and $32 price target, while Li Auto Inc. (NASDAQ: LI) was initiated with a Hold rating and $33 price target.Nio Vs. Xpeng Vs. Li Auto: Of the three U.S.-listed EV makers, Li Auto and Xpeng look the most expensive when weighed against their fundamentals, Lau said in a note. Xpeng appears to be more vulnerable to Tesla Inc's (NASDAQ: TSLA) potential price-cutting strategy, the analyst said.Li Auto's extended-range EVs target customers concerned about BEV battery performance and safety, he said. For Xpeng and Li Auto, Lau sees the potential for weaker-than-expected sales.Using Tesla as a reference, Xpeng's 2021E price-to-sales ratio of 18 times looks particularly high, while Nio's 14 times and Li Auto's 12 times appear reasonable, the analyst said. "Investors may need to wait until we are closer to 2022 to see better valuations, which limits Xpeng and Li Auto's prospects for a further rerating in 2021E, in our view," he said. Daiwa Securities recommended a pair trade in Chinese EV makers: going long on Nio and shorting Xpeng.Click here to check out Benzinga's EV Hub for the latest electric vehicles news.Analyst Positive On EV Demand Outlook: Chinese new energy vehicle sales volume is expected to rise from an estimated 9% increase in 2020 to 32% in 2021, Daiwa said.This represents an upward revision to the firm's estimate for a 5% decline for 2020 and 20% growth in 2021.Competition To Depress EV Prices: Next year is likely to be a big one for new smart car and NEV launches, Lau said.Leading brands such as Tesla are likely to maintain their price leadership strategy and gain market share, the analyst said.The analyst projects that ASPs, especially in the mid-range of 150,000-300,000 yuan ($22,980-$45,965), to come under pressure.The waning enthusiasm of local governments to support every new-gen auto start-up will likely lead to small brands closing down, he said. The Trend Of 'Smart Car Tech': The focus of new-gen auto companies is likely to be on customer-facing features like design, advanced driver-assistance systems, in-vehicle infotainment and vehicle-to-everything systems, Lau said.It will likely take time for new-gen autos companies to take the lead in truly differentiating themselves from traditional players, the analyst said. The analyst sees likely improvements in ADAS functionality as stimulating sales volumes over the next three years.Price Action: Nio shares have added about 1,000% year-to-date compared to Xpeng's 133% gains since its listing on Aug. 27.Li Auto shares have advanced about 95% since it began trading on the Nasdaq on July 30.Photo courtesy of Xpeng. Latest Ratings for NIO DateFirmActionFromTo Dec 2020Goldman SachsUpgradesSellNeutral Nov 2020Deutsche BankMaintainsBuy Nov 2020B of A SecuritiesMaintainsBuy View More Analyst Ratings for NIO View the Latest Analyst RatingsSee more from Benzinga * Click here for options trades from Benzinga * Xpeng Is Positioning Itself As Tech Leader Among China's 'Fab Four' EV Makers, Deutsche Bank Says * Nio Reaches Deal To Build 100 EV Charging, Battery Swap Stations In China(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.