MIDF Research has maintained its “positive” rating on the technology sector and said worldwide semiconductor sales increased by 13.3% year-on-year and 0.5% quarter-on-quarter to US$152.5 billion (about RM679.24 billion) in the second quarter of 2022.
“However, global sales for the month of June 2022 were US$50.8 billion, a decrease of 1.9% month-on-month,” it said.
In a sector update on Friday (Aug 5), MIDF said even though the technology sector continues to be under pressure from the rate hike and other macroeconomics issues, the research house remains positive on the sector given demands for 5G, artificial intelligence (AI), electric vehicle (EV) related products and services remain solid and are the key enablers to ignite the digital economy worldwide.
It said the emerging technologies depend heavily on the semiconductor industry to provide the computing power necessary.
“Therefore, our positive stance on this sector remained due to its robust mid-long terms outlook in tandem to the increasing adoption and integration of smart technologies, enveloping lots of sectors and applications.
“Our top pick semiconductor companies are Inari Amerton Bhd (buy, [target price (TP)]: RM3.65) and Unisem (M) Bhd (buy, TP: RM4.07) given the group’s exposure to growing RF (radio frequency) contents in 5G smartphone usage and adoption.
“We also like Globetronics Technology Bhd (buy, TP: RM1.94) due to its exposure in high-tech sensors products for various applications,” it said.
- The Edge Markets