Traction in Semiconductor Sector Amid Market Shortage and Rising Demand

This report is an updated version of the report published on the 15 December 2022 at 3:55 PM (GMT+11)

Bird’s Eye View of Sector Report

Megatrends Substantiating Growth Prospects for Semiconductor Sector

Key Technologies to Drive Semiconductor Demand

Index Performance

Key Challenges V/S Key Drivers

Investment theme and stocks under discussion (WBT, SLX)

After understanding the sector, let us now look at two companies listed on the ASX. The price potential of the companies under discussion has been analysed based on the technical analysis.

1. ASX: WBT (Weebit Nano Limited)

(Recommendation: Speculative Buy, Mcap: AUD 660.00mn)

WBT is involved in the development of semiconductor memory technology and focused on developing non-volatile memory (NVM) using the Resistive RAM technology

2. ASX: SLX (Silex Systems Limited)

(Recommendation: Speculative Buy, Mcap: AUD 595.40mn)

SLX is focused on developing Separation of Isotopes by Laser EXcitation (SILEX) laser enrichment technology for silicon enrichment, uranium production & enrichment, and other potential markets which involves medical radioisotopes

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an Indicator nor a guarantee of future performance. 

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 15^th December 2022. The reference data in this report has been partly sourced from REFINITIV. 

Note 3: Investment decisions should be made depending on an individual’s appetite for upside potential, risks, holding duration, and any previous holdings. An ‘Exit’ from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above. 

Technical Indicators Defined: - 

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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