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Semiconductor Analysts Bullish on 2021, But Valuation a Risk

  • Analysts say to be selective given ‘extreme’ multiples
  • B. Riley analyst sees additional share gains of nearly 20%
Manufacturing Calculators at a Cal-Comp Technology Factory as New Kinpo Group Philippine Unit Plans IPO
Photographer: Hannah Reyes Morales/Bloomberg
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Semiconductor companies are facing improved prospects headed into 2021, but these tailwinds could be tempered by stock prices that are near all-time highs, analysts said on Monday.

The Philadelphia Semiconductor index rose 1.2% on Monday, bringing its year-to-date advance to nearly 50%. The industry benchmark has easily outperformed the 13% gain of the S&P 500, as well as the 36% rise of the S&P 500 information technology index.