1 Little-Known Chip Stock to Bet on the Auto Industry
As worries of a recession and a slowdown in chip sales mount, semiconductor stocks are getting mighty cheap. STMicroelectronics (NYSE: STM) is one of those stocks. The often-overlooked Switzerland-based chipmaker is a top tech supplier to the auto industry, as well as a supplier for related tech trends like industrial automation and power management.
Trading for just over 10 times trailing 12-month earnings per share, this stock could be a top way to bet on the gradual electrification and digitization of the auto industry.
A global shortage of chips has sent STMicro's financials soaring over the last couple of years. After a sleepy period from 2018 through early 2021 due to the U.S.-China trade war and then the pandemic, sales have skyrocketed since.
Source Fool.com
