4 Undervalued Semiconductor Stocks

Plus: What to watch in AI stock earnings, top-performing large growth funds, updated economic outlook. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=53525&elqTrackId=3f550370a1bd497b9d002cf209a2f541&elq=af9aaa6a7d5e46a89a6bc627fa437fe3&elqaid=53525&elqat=1&elqCampaignId=27143) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week's newsletter: - [4 Undervalued Semiconductor Stocks]( - [Will Earnings From These 10 AI Stocks Live Up to the Hype?]( - [7 Top-Performing Large-Growth Funds]( - [Big Banks: High Interest Rates and Sticky Inflation Haven’t Dented Consumer Spending]( - [Q2 Update: 2024 Outlook for the Stock Market and Economy]( - [Morningstar’s Latest Analyst Reports on Q1 Earnings]( Well, the stock market has now given back more than half the gains it had chalked up as of late March. The cause of the pullback, of course, has been [dwindling expectations]( for Federal Reserve interest rate cuts, thanks to remarkably solid economic growth and sticky [inflation pressures](. This [coming week]( will bring a critical reading on inflation courtesy of the personal consumption expenditures price index, which could either help cement the Fed staying on hold or offer some wiggle room for rate cuts. If you’re interested in a deep dive into the prospects for the economy and the markets, [the Morningstar quarterly outlook webinar]( will be up your alley. It features Morningstar’s chief US economist Preston Caldwell and chief US strategist David Sekera, with their takes on what could be ahead. One of the most important factors in the outlook for the economy is the health of the consumer. While most investors focus on the official government statistics, another view can come from the big banks’ earnings calls. What are they saying about where consumer spending may be headed? [Sarah Hansen checked in]( with earnings calls and Morningstar analysts for the verdict. Speaking of earnings, our coverage continues this week with previews of Big Tech earnings, including [Amazon]( [Meta]( [Microsoft]( [Alphabet]( and [Tesla](. We’ve also got our analysts’ readings on earnings from [Netflix]( [United Airlines]( and [Proctor & Gamble](. For a complete look at Morningstar’s take on first-quarter earnings, check out our new [company earnings page](. As earnings season rolls on, one of the biggest areas of focus will be stocks that have seen big rallies on the back of expectations around the boom in artificial intelligence. Bella Albrecht checked in with Morningstar’s tech analysts to see what they will be watching for among [10 of the biggest players in the AI space](. This week, we also take a closer look at [semiconductor stocks](. With valuations on many chip stocks looking stretched, Morningstar’s analysts offer investors four undervalued semiconductor names. Lastly, we’ve got our screen of the [top-performing large-growth stock funds](. We’ve got seven names, including funds from Fidelity, Vanguard, and Schwab. As always, check out our [Markets page]( for our latest coverage and live stock market updates, along with our [weekly calendar]( of key upcoming data and events. Did a friend forward this email? [Sign up here](. [4 Undervalued Semiconductor Stocks]( [4 Undervalued Semiconductor Stocks]( Amid the Nvidia-led AI boom, Infineon and STMicroelectronics are among Morningstar’s top picks. Diana Anghel [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [7 Top-Performing Large-Growth Funds]( [7 Top-Performing Large-Growth Funds]( The category’s gains have been led by returns from investments in tech stocks. Kumudini Devalla [Big Banks: High Interest Rates and Sticky Inflation Haven’t Dented Consumer Spending ]( [Big Banks: High Interest Rates and Sticky Inflation Haven’t Dented Consumer Spending]( But changing spending patterns bear watching. Sarah Hansen [Q2 Update: 2024 Outlook for the Stock Market and Economy]( [Q2 Update: 2024 Outlook for the Stock Market and Economy]( Our expectations for the US equity market, plus top stock picks for the quarter. Preston Caldwell, David Sekera, Susan Dziubinski [Will Earnings From These 10 AI Stocks Live Up to the Hype?]( [Will Earnings From These 10 AI Stocks Live Up to the Hype?]( What to watch for in Q1 reports from Nvidia, Microsoft, Amazon, Broadcom, and more. Bella Albrecht [What’s Happening In the Markets This Week]( [What’s Happening In the Markets This Week]( PCE inflation and big tech earnings, including Meta, Microsoft, and Alphabet, are on deck. Bella Albrecht [Going Into Earnings, Is Amazon Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Amazon Stock a Buy, a Sell, or Fairly Valued?]( Looking at Amazon’s critical growth drivers, here’s what we think of its stock. Dan Romanoff [Going Into Earnings, Is Meta Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Meta Stock a Buy, a Sell, or Fairly Valued?]( With continued growth across its platforms, here’s what we think of Meta stock. Michael Hodel [Going Into Earnings, Is Microsoft a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Microsoft a Buy, a Sell, or Fairly Valued?]( Watching Azure and updates on AI products, here’s what we think of Microsoft stock. Dan Romanoff [Going Into Earnings, Is Alphabet Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Alphabet Stock a Buy, a Sell, or Fairly Valued?]( With the rebound in digital advertising and its AI push, here’s what we think of Alphabet’s stock. Michael Hodel [Going Into Earnings, Is Tesla Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Tesla Stock a Buy, a Sell, or Fairly Valued?]( With a focus on profits and margins, here’s what we think of Tesla stock. Seth Goldstein [How to Position Your Investment Portfolio Before the 2024 Election]( [How to Position Your Investment Portfolio Before the 2024 Election]( Lessons learned from a deep dive into market behavior following the 2016 and 2020 elections. Dan Lefkovitz, Susan Dziubinski [Israel’s Response to Iran’s Strike Confirms Minimal Escalation View; Oil Markets Remain Oversupplied]( [Israel’s Response to Iran’s Strike Confirms Minimal Escalation View; Oil Markets Remain Oversupplied]( Events support our view that both parties wish to de-escalate tensions. Stephen Ellis [Salesforce: Our Initial High-Level View of Possible Informatica Acquisition Is Negative]( [Salesforce: Our Initial High-Level View of Possible Informatica Acquisition Is Negative]( Since there is no official announcement, we are addressing the news without context such as deal price, rationale, or longer-term plans. Dan Romanoff [Lithium Americas: Shares Plunge on Equity Issuance]( [Lithium Americas: Shares Plunge on Equity Issuance]( We still view Lithium Americas stock as undervalued. Seth Goldstein [ARK’s Cathie Wood on Tesla, AI, and Bitcoin]( [ARK’s Cathie Wood on Tesla, AI, and Bitcoin]( We spoke to the founder and CEO of ARK Invest about artificial intelligence, electric vehicles, and the prospects for active ETFs in Europe. Valerio Baselli [Neil Shearing: What You Might Be Missing About the Current Economy]( [Neil Shearing: What You Might Be Missing About the Current Economy]( A global economist weighs in on inflation, upcoming elections, and deglobalization. Christine Benz, Dan Lefkovitz [6 Stocks to Sell and 6 Stocks to Buy Instead]( [6 Stocks to Sell and 6 Stocks to Buy Instead]( Plus our take on the latest inflation figures and big bank earnings. David Sekera, Susan Dziubinski [The Best Bond Index Funds: Part 2]( [The Best Bond Index Funds: Part 2]( Picks from the high-yield, inflation-protected, municipal, and global categories. John Rekenthaler [TIPS Are on Sale]( [TIPS Are on Sale]( It’s time to buy shares of TIPS funds, not redeem them. John Rekenthaler [19 Best Healthcare Companies to Invest In]( [19 Best Healthcare Companies to Invest In]( These companies largely earn their competitive advantage from intangible assets, and their stocks are great choices for an investor’s watchlist. Emelia Fredlick, Benjamin Slupecki Chart of the Week [What the Next Bitcoin Halving Means for ETF Investors]( [What the Next Bitcoin Halving Means for ETF Investors]( The fourth halving in bitcoin history is expected as soon as today. Here’s why this time could be different. Valerio Baselli [Read More]( Share: [facebook]( [twitter]( [linkedin]( Recent Earnings [Fifth-Third: Mostly Solid Start to 2024]( [Bank of America: Investment Banking and Asset Management Keep Fees Strong, but Charge-Offs Rise]( [PNC: Expenses Are Well-Managed; Net Interest Income Will Worsen Before Seeing Improvement]( [M&T Bank: A Steady Start to 2024]( [Comerics: Net Interest Income and Expense Outlook Steady]( [US Bancorp: Company Lowers 2024 Guidance for Both Net Interest Income and Expense]( [KeyCorp: 2024 Net Interest Income Outlook Unchanged; Fees Strong and Expenses Stable]( [Charles Schwab: Clear Signs of Positive Medium-Term Results]( [Goldman Sachs: Strong Start to Year as Investment Banking and Trading Power Results]( [Procter & Gamble: Muted Sales Growth Doesn’t Reflect a Stained Brand Mix]( [Johnson & Johnson: Solid Growth to Start the Year, but We Expect That to Slow by Midyear]( [TSMC: Shares Cheap as Cautious Capital Spending and Industry Outlook Dent Sentiment]( [Kinder Morgan: AI Growth Likely to Add Second Leg to Gas Demand on Top of US LNG Exports]( [Netflix: Incredible Quarter, but Investors Fear Slowdown]( [United Airlines: Strong Revenue Offset by Ongoing Investments]( [UnitedHealth: 2024 Outlook Maintained Despite Change Outage and Elevated Utilization]( [Regions Financial: Mixed Quarter, 2024 Outlook Mostly Reiterated]( [Morningstar Company Reports]( For a complete look at Morningstar’s take on first-quarter earnings, check out our new company earnings page and discover actionable insights today. Get Top Stock Picks and Market Insights Every Week on The Morning Filter. Every Monday morning, Susan Dziubinski sits down with Morningstar Chief U.S. markets strategist Dave Sekera to discuss what's on his radar, new Morningstar research, and stock picks or plans for the week ahead. [Watch Now.](morningstar/streams?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=53525) Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2024 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602