WOLF - NXP Skyworks others could outperform as chip levels return to normal: Wells Fargo

NXP Semiconductors (NASDAQ:NXPI), Skyworks Solutions (NASDAQ:SWKS), Ambarella (NASDAQ:AMBA) and a number of other semiconductor stocks could outperform the broader industry as chip inventory levels rise later this year, presenting a "headwind to cyclically focused semiconductor stocks," Wells Fargo said in a note to clients. A team of analysts, led by Gary Mobley, noted that inventory levels likely bottomed in the third-quarter of 2021, citing data from Gartner's inventory tracker index. Using that, along with their own analysis, semiconductor investors should be wary of companies that are tied to cyclical changes, as the gap for demand and supply starts to shrink. In addition, if chip order/manufacturing lead times start to shrink and inventory starts to increase, these stocks could underperform.  However, those tied to radio frequency and the automotive spaces are likely to outperform, including the aforementioned companies, as well as Qorvo (NASDAQ:QRVO), Allegro MicroSystems (NASDAQ:ALGM) and Wolfspeed (NYSE:WOLF). Other chip

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NXP, Skyworks, others could outperform as chip levels return to normal: Wells Fargo