Once high-flying semiconductor stocks suffered in 2022, but UBS is betting on these names in the new year. The chip sector suffered as demand for consumer products like PCs and smartphones dwindled, and supply constraints weighed on production. A rotation out of growth stocks as the Federal Reserve hiked interest rates further pressured semiconductors as investors awaited a correction for the once-booming industry. Those issues are far from over, but UBS views some stocks as better positioned to ride out the new year. “We expect a challenging macro backdrop to persist through much of 2023, though a China re-opening will likely provide some ballast to weakening US/Europe,” wrote analyst Timothy Arcuri in a note to clients this month. “Nonetheless, we are bullish on semiconductor stocks for 2023 — expecting stock momentum to really build into CQ2 and 2H:23 before the ISM likely bottoms late in the year.” Here are some of the stocks the bank is betting on in 2023. UBS named Advanced Micro Devices among its top picks in the new year. The chip stock, commonly known for its PC and server chips, made history this year as it surpassed its rival Intel in market capitalization . Shares are down more than 56% this year. Micron Technology is another name UBS is recommending for the new year. The chip stock became the latest company to get hit by a slowdown in tech, announcing plans to suspend bonuses and cut its workforce by 10% earlier this month . Micron’s shares are off by 47% in 2022. UBS also recommended Analog Devices , Nvidia and Lam Research in 2023. — CNBC’s Michael Bloom contributed reporting
