Chip sector remains in robust upcycle

In its commentary, TA Research said it maintained its “overweight” rating on the semiconductor sector with “buy” recommendations on companies under its coverage. These are Inari-Amertron Bhd with a target price of RM4.25 and a price-to-earnings (PE) ratio of 39 times, Unisem (M) Bhd with a target price of RM11.80 and 35 times PE, Malaysian Pacific Industries (MPI) with a target price of RM60.85 and 35 times PE, and Elsoft Research Bhd with a target price of RM1.25 and 35 times PE.

PETALING JAYA: The semiconductor sector remains in a robust upcycle after having recorded 19 consecutive months of year-on-year (y-o-y) growth.

Industry growth in the most recent five months have also been very strong at levels of above 20% y-o-y.