BofA Securities analyst Vivek Arya devised a fresh ensemble in the semiconductor arena known as MANGO, inspired by the triumphs of FAANG stocks.
Comprising Marvell Technology Inc, Advanced Micro Devices, Analog Devices Inc, Broadcom Inc, Nvidia Corp, GlobalFoundries Inc, and On Semiconductor Corp, the MANGO selection aims to capture the quintessence of industry stalwarts in the semiconductor realm.
A glance at the one-year price performance reveals a tapestry of growth trajectories within the MANGO contingent. Nvidia emerges as the frontrunner with a remarkable surge of +220.78%, trailed by Broadcom at +116.45% and Advanced Micro Devices at +84.96%. Marvell Technology and Analog Devices also exhibit commendable gains, whereas GlobalFoundries and On Semiconductor present more modest figures, with declines of -22.07% and -7.89% respectively.
Scrutinizing the valuation metrics across the MANGO stocks discloses variations in their market positioning.
Two multiples, the Price-to-Earnings (P/E) Ratio and the Enterprise Value-to-Sales (EV/Sales) Ratio, were examined to provide insight into the valuations of the MANGO stocks.
| Stock | P/E FWD | EV / Sales |
| Nvidia | 35.12 | 34.96 |
| On Semiconductor | 16.05 | 3.72 |
| Broadcom | 28.27 | 17.58 |
| Analog Devices | 32.67 | 8.93 |
| GlobalFoundaries | 37.89 | 3.56 |
| Advanced Micro Devices | 47.35 | 11.99 |
| Marvell Technology | 50.1 | 11.93 |
Nvidia exhibits a P/E ratio of 35.12 and an EV/Sales ratio of 34.96, spotlighting its robust market standing. Conversely, ON Semiconductor emerges as a promising undervalued find with a comparably lower P/E ratio of 16.05 and an appealing EV/Sales ratio of 3.72.
GlobalFoundries also showcases a healthy EV/Sales multiple, signaling positive market sentiment despite recent downturns.
Analysts present a nuanced perspective on the MANGO stocks. Undervalued gems identified include:
- ON Semiconductor with a consensus price target of $83.97, suggesting an implied upside of 18.35% based on recent analyst ratings.
- GlobalFoundries holding a consensus price target of $69.71, hinting at a potential 12.27% upswing according to recent analyst appraisals.
The advent of the MANGO stocks underscores the semiconductor sector’s ambition to mirror the successes of tech giants like FAANG. With diverse performance trajectories and distinct valuation metrics, investors are presented with a plethora of options within the MANGO assortment. As the semiconductor landscape continues to evolve, astute analysis and strategic investment decisions will be pivotal in navigating this dynamic terrain.