When many investors think of semiconductors, microchips that power PCs, smartphones, and data centers are what first come to mind. But semiconductors extend far beyond computing chips. Semiconductors are also used to manage electricity -- in industrial equipment, renewable energy projects, and battery systems in electric vehicles. Semiconductors are the materials that power ultra-high-definition screens on our devices, too. 

That brings us to our topic company, Universal Display (NASDAQ: OLED), patent holder and basic material seller for OLED displays. The company is dealing with a downturn arising from the smartphone market, but a big rebound could be in store later in 2023. Here's why I think Universal Display is a buy now.  

The smartphone market is in the midst of a nasty downturn, and it's dragging Universal Display (UDC from here on) down with it. People are easing up on electronic device purchases after a couple years of boomtime early in the pandemic, at exactly the same time a supply of chips is coming back online. Top mobile device companies like Qualcomm (NASDAQ: QCOM) have already reported an expectation for year-over-year double-digit percentage revenue declines through about the first half of 2023. 

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Source Fool.com