ALGM - Amid tough auto chip market Wells Fargo has picks for more upbeat 2022

The automotive semiconductor market's woes this year have been well-covered - but a look at "where the puck is going next" has Wells Fargo somewhat more bullish on prospects, especially for 2022. The key question it's facing from investors is "How can automotive chip industry sales in 2021 reach $50.3B and trend 23% above pre-pandemic levels (2019) when light vehicle production in 2021 may trend 10% below pre-pandemic levels?" And given that, why is there still a chip shortage for autos? Bears would suggest excess inventory somewhere in the channel - for example "droves of mostly finished vehicles parked outside assembly plants awaiting a final control unit" - but "we take a more bullish stance," the bank says, saying investors should stick with auto chips as we're still in early days of a "super cycle." Gartner projects automotive semiconductors will grow 30% this year and 15% in 2022 - but

For further details see:

Amid tough auto chip market, Wells Fargo has picks for more upbeat 2022