4 Undervalued Semiconductor Stocks

Plus: Fidelity’s Chisholm on the stock market outlook, a hidden risk in your portfolio, and Morningstar’s forecasts for rates and the markets. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=51191&elqTrackId=a513884cff3a4e3e9822c544e8f8f878&elq=2f57ccecbddb4d4286d6039cedf04823&elqaid=51191&elqat=1&elqCampaignId=25698) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week's newsletter: - [Why Fidelity’s Denise Chisholm Is Optimistic About the Outlook for Stocks]( - [2024 Outlook for the Stock Market and Economy]( - [Watch Out for This Hidden Risk in Your Investment Portfolio in 2024]( - [4 Undervalued Semiconductor Stocks]( - [Do You Have the Wrong Index Funds for 2024’s Stock Market?]( The grind continues for stocks, but their latest move has taken them higher after a several-week pause in the rally. That’s leaving the broader stock market heading back toward record-high territory. The market continues to be driven by tech stocks, confounding expectations for a broadening to a wider group. As [Dan Lefkovitz of Morningstar Indexes]( highlights, this concentrated bull market means that where your stock portfolio goes from here probably depends heavily on those same stocks continuing to rally. In fact, if the rally does broaden, as many stock strategists expect, then the index funds in which the vast majority of us invest may not be the best strategy for that environment. [Sarah Hansen explores an interesting question]( Do you own the right kind of index fund for a wider stock market rally? Among the analysts looking for a different kind of rally in 2024 is Fidelity’s Denise Chisholm. We spoke with her about [her outlook]( why she sees good news ahead on earnings, and the areas of the stock market which she thinks offers the best opportunities. This week, we’ve also got the latest in-depth economic and stock market outlook from Morningstar’s Preston Caldwell and Dave Sekera. You can find their video presentation on stock market valuations, Federal Reserve rate cuts, and more [here](. One of the more surprising stock market rallies in 2023 came in Japan. Many investors gave up hope on that market long ago, but surprise! Japanese stocks were up 28% last year. Can this last? [Leslie Norton has 10 reasons]( that analysts say this unexpected ride high could continue. Lastly, we’ve put out a stock screen that looks under the hood of semiconductor stocks. Thanks to the artificial intelligence boom and Nvidia’s monster rally, many investors may have forgotten there’s a lot more to chip stocks than supporting AI chatbots. We’ve got [four undervalued top semiconductor stock picks]( from Morningstar analysts. 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 “gold rush,” MediaTek and Skyworks are among Morningstar’s top picks. Diana Anghel [Get Top Picks]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [Do You Have the Wrong Index Funds for 2024’s Stock Market?]( [Do You Have the Wrong Index Funds for 2024’s Stock Market?]( There’s growing optimism that equal-weighted funds will shine in 2024. Sarah Hansen [Why Fidelity’s Denise Chisholm Is Optimistic About the Outlook for Stocks]( [Why Fidelity’s Denise Chisholm Is Optimistic About the Outlook for Stocks]( Chisholm says earnings growth is headed higher, which is good for the market. Sarah Hansen [2024 Outlook for the Stock Market and Economy]( [2024 Outlook for the Stock Market and Economy]( Morningstar specialists discuss stock market valuations, interest rate forecasts, GDP expectations, and more. Preston Caldwell, David Sekera, Susan Dziubinski [Why Now Is the Time for Value Investing]( [Why Now Is the Time for Value Investing]( Also, what you should know before buying a spot bitcoin ETF. Sarah Hansen, Bryan Armour, Ivanna Hampton [10 Reasons the Surprise Rally In Japanese Stocks Could Continue]( [10 Reasons the Surprise Rally In Japanese Stocks Could Continue]( After a 2023 surge, dividends and buybacks could increase. Leslie Norton [Watch Out for This Hidden Risk in Your Investment Portfolio in 2024]( [Watch Out for This Hidden Risk in Your Investment Portfolio in 2024]( Which sectors to avoid—and which look attractive. Dan Lefkovitz, Susan Dziubinski [What’s Happening In the Markets This Week]( [What’s Happening In the Markets This Week]( Tesla, Netflix, Visa, and Intel highlight a busy week of earnings reports. Bella Albrecht [Going Into Earnings, Is Microsoft Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Microsoft Stock a Buy, a Sell, or Fairly Valued?]( We’ll be watching growth in Azure and commercial bookings Dan Romanoff [Going Into Earnings, Is Netflix Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Netflix Stock a Buy, a Sell, or Fairly Valued?]( With the continuing crackdown on password sharing and increased ad-supported subscriptions, here’s what we think of Netflix stock. Matthew Dolgin [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 Tesla’s margins under pressure and an uncertain 2024 outlook, here’s what we think of its stock. Seth Goldstein [Vanguard Got Bitcoin Right]( [Vanguard Got Bitcoin Right]( Sometimes it’s best to just say no. John Rekenthaler [18 of the Best Stocks and ETFs to Buy Based on 2024 Expert Forecasts]( [18 of the Best Stocks and ETFs to Buy Based on 2024 Expert Forecasts]( Top investment firms expect non-U.S. stocks to outperform. Here are Morningstar’s top international stock and ETF picks today. Susan Dziubinski [11 Top-Performing Large-Value Funds]( [11 Top-Performing Large-Value Funds]( Dodge & Cox, Oakmark, and Vanguard are among the 11 funds we found with the best returns. Kumudini Devalla [3 Excellent Vanguard Funds for the Long Term]( [3 Excellent Vanguard Funds for the Long Term]( Elevate your portfolio with these Gold-rated gems. Russel Kinnel [Which Investments to Keep Out of Your Taxable Account]( [Which Investments to Keep Out of Your Taxable Account]( Sizable mutual fund capital gains distributions illustrate a simple fact: Some investments are structurally a poor fit for taxable accounts. Christine Benz Chart of the Week [Is Even a Little Bitcoin Too Much for Your Portfolio?]( [Is Even a Little Bitcoin Too Much for Your Portfolio?]( Spot bitcoin ETFs make it easy to add the cryptocurrency to a 60/40 portfolio, but there’s a chance it can turn your portfolio upside down. Stephen Margaria [Read More]( Share: [facebook]( [twitter]( [linkedin]( Recent Earnings [Charles Schwab: Revenue Growth In 2024 Uncertain, but Long-Term Outlook Bright]( [PNC: Net Interest Income Pressure Should Be Offset by Recovery In Noninterest Income]( [U.S. Bancorp: Company Expects Relatively Stable Net Interest Income In 2024]( [Wells Fargo: Net Interest Income Guidance Disappoints, but Expenses Remain Under Control]( [Citigroup: Turnaround Remains Complex, Expense Management Is Promising]( [M&T Bank: Decent Quarter, but Outlook Soft With Some Credit Deterioration]( [Kinder Morgan: A Weaker End to 2023, but 2024 Looks Much Better]( [KeyCorp: Reduced Net Interest Income Pressure Should Materialize In the Second Half of 2024]( [Taiwan Semiconductor: Upbeat Guidance and Lower 2024 Capital Expenditure Encouraging]( [Truist: Goodwill Impairment and Lackluster 2024 Outlook]( [Comerica: Decent Quarter, but Net Interest Income Outlook a Bit Soft]( [Regions Financial: Messy but Solid Quarter, Decent Outlook]( Future-Proof Your Strategy With Morningstar Investor Build a portfolio that's durable, no matter what the market throws your way. Subscribe to Morningstar Investor and get unlimited access to our powerful ratings and performance data, unbiased analysis on thousands of stocks, funds, and ETFs, and portfolio management tools that give you a deep understanding of your investments so you know when to make changes to keep your strategy strong. [Start your free trial today](. 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