NXPI - A Welcome Pullback At STMicroelectronics But The Lead-Time Story Still Carries Risk

• Worries about the security of the company's business with Apple have continued to weigh on shares, and elevated lead-times remain a sector-wide risk.
• STMicroelectronics has good traction with its SiC program and its opportunities in 32-bit MCUs and IoT are likely underappreciated; management also claims 3-year visibility on major programs (likely including Apple).
• As lead-times correct there is a risk of sector-wide underperformance that could drive STMicroelectronics shares lower, but the long-term appreciation potential looks attractive for patient investors.

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