SOX down 4%, we think move is overdone
US semiconductor stocks (SOX) are down around 4% today on: 1) increasing noise
around emerging market demand weakness, as we recently noted in our Taiwan
conference note; 2) continued FX volatility; and 3) likely, end of quarter repositioning
in the semis sector where stocks/trading multiples have appreciated significantly in
the last year. This volatility could continue until start of earnings in mid-April, but we
believe the pullback could create particularly attractive opportunities in
fundamentally attractive stocks. We reiterate buy on NXPI, SWKS, AVGO, TXN,
QRVO, NVDA and INTC.