2023-03-13 08:00:00 ET
Someone forgot to tell MaxLinear (NASDAQ: MXL) and Silicon Motion Technology (NASDAQ: SIMO) about the epic rebound in chip stocks. As measured by the iShares Semiconductor ETF , semiconductor shares are up over 35% since their low point in mid-October 2022. MaxLinear and Silicon Motion? Up a meager 11% since that time.
The two companies are in the midst of a merger that's awaiting approval from regulators in mainland China. In the meantime, the current downturn in global chip sales has finally come for these two businesses. Can they rally in 2023?
It's no secret that many chip stocks have suffered a nasty downturn over the past year. PC and smartphone sales in particular are down big after consumer spending on tech devices eased after big spending early in the pandemic. More recently, a glut of memory chips has begun to impact some parts of the data center and business server market.
For further details see:
Will These 2 Beaten-Up Semiconductor Stocks Rally in 2023?