7 Semiconductor Stocks Recommended by Goldman Sachs

Goldman Sachs recommended the best semiconductor stocks for it. Insider Monkey gives us a posting on the " 7 Semiconductor Stocks Recommended by Goldman Sachs". Goldman Sachs published a report entitled “Americas: Technology: Semiconductors” on January 2, 2012. The report isn’t publicly available but we will summarize its main points. In their report, James Covello, James Schneider, Mark Delaney, and Gabriela Borges suggest that the semiconductor sector is expected to perform better than the semi production equipment sector. Semiconductor shipments are currently below trend and fundamentals are likely to improve in the second quarter of 2012. Orders for semi production equipment, on the other hand, are likely to decline by mid-2012. In this article we will focus on Goldman Sachs’ favorite stocks in this industry.

Aeroflex (ARX) engages in the design, engineering, manufacture, and sales of microelectronic products. It has been given a buy rating by Goldman Sachs (GS) which believes that Aeroflex is the most likely stock in their coverage universe that will be acquired in 2012. The company’s ability to do a tax-free spin of its Test and Microelectronic segments will be a positive catalyst for the company in 2012. Growth in 4G LTE is also expected. Shares of the company are currently trading at $12.7 per share and are expected to go north of $14. George Soros had $19 million invested in ARX at the end of September. Go to the site of Insider Monkey for the full details about the best semiconductor stocks recommended.