UMC Stock Recent News

Thanks to the artificial intelligence (AI) trend, the semiconductor industry has been on fire. Semiconductor stocks within the computer and technology sector are benefactors.

United Microelectronics Corporation is expected to see top-line growth and improved profitability in 2024 and beyond. The company's financials show a decent cash position and manageable debt, with a strong interest coverage ratio. UMC's competitive advantage and market position are expected to be restored once the industry improves, making it an attractive investment.

The island plays an outsized role in the global chip supply chain as it is home to the world's largest chipmaker Taiwan Semiconductor Manufacturing, which supplies chips to Apple and Nvidia.

TSMC says it evacuated some plants but workers are now returning.

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

United Microelectronics Corporation (UMC) Q4 2023 Earnings Call Transcript

UMC's revenue fell this year owing to weak end markets, but both PC and wireless markets are seeing signs of recovery. The company has niche offerings in mature semi processes which have proven resilient while its customer base is diverse and sticky. UMC trades at about 12x P/E which is undemanding for a company that is looking at cyclical improvements as the industry recovers.

After some ups and downs, Verizon's core wireless business is finally stabilizing. UMC's conservative approach to manufacturing chips deserves more attention.

The stock market has been performing well recently, with the S&P 500 rallying up over 4% in the last month. However, with investors always looking to out-beat the market, technology firms, and especially semiconductor companies, provide potential for explosive growth potential.

While innovation typically coincides exclusively with a growth-centric business model, that's not always the case as these tech stocks to buy for growth and passive income demonstrates. With this category, investors can have their cake and eat it too.