Apart from the geopolitical issues and supply chain constraints, the chip industry has been challenged by high-interest rates, stubborn inflation, and softening demand in the end market. Although the long-term prospects of the chip industry look bright, not all chip stocks are expected to do well.
To that end, I believe it could be wise to avoid fundamentally weak chip stocks Wolfspeed, Inc. (WOLF) and Navitas Semiconductor Corporation (NVTS). Both stocks are amongst the worst-rated chip stocks in our POWR Ratings system.
