The Action Alerts Plus team offered comments Wednesday about several stocks that were recipients of good news--much of it indirect..
Discussing lighting technology company Universal Display (OLED), the team noted that corporations with meaningful exposure to China, are “likely to see a near-term headwind” from stringent government regulation. Universal Display is one of those companies.
“Similar to what we saw unfold in the U.S., we suspect the current round of curbs [from the government] will drive pent-up demand that will be realized when these curbs are finally ended,” the AAP team wrote. “This could lead to a far stronger second half of the quarter,” though it's not a slam dunk.
Meanwhile, electric vehicle maker Rivian Automotive (RIVN) announced Tuesday that it produced 2,553 vehicles and delivered 1,227 during the March quarter. The company said it’s well positioned to meet its guidance for full-year production of 25,000.
“We see this as a modest positive” for Amazon (AMZN) and Ford Motor (F), as both have equity stakes in Rivian, the AAP team said.
“We also see it as confirming the need for charging stations.” That’s good for electric vehicle charging station network ChargePoint (CHPT), the team said.
Finally, executives of semiconductor maker Analog Devices (ADI) spoke Tuesday about how it’s capitalizing on the strong growth of electrification, digitization, automation, and connectivity. And the company lifted its long-term annual revenue growth target to 7% to 10%.
That’s good news for chip stocks Nvidia (NVDA) , Marvell Technology (MRVL), and Advanced Micro Devices (AMD); ChargePoint; and Ford.
