Many
investors
have
been
bullish
on
technology
stocks
over
the
past
few
months,
and
Goldman
Sachs
is
no
exception.
In
a
Jan.
8
note,
the
investment
bank
highlighted
opportunities
in
the
Asian
tech
hardware
industry,
citing
“focal
points”
for
2024,
such
as
cyclical
recovery,
artificial
intelligence
and
the
impact
of
geopolitical
conditions,
including
changes
in
the
semiconductor
supply
chain.
“While
we
expect
a
very
modest
cyclical
recovery
as
a
whole,
we
continue
to
look
for
opportunities
among
individual
stocks,”
Goldman
Sachs’
analysts,
led
by
Daiki
Takayama,
wrote
in
the
note,
naming
buy-rated
names
—
including
four
conviction
list
stocks
—
to
play
the
theme.
The
bank’s
conviction
list
comprises
its
top
buy-rated
stock
ideas
that
are
expected
to
beat
the
market.
SK
Hynix
South
Korean
chipmaker
SK
Hynix
was
among
the
stocks
that
made
Goldman’s
list
of
buy-rated
names
that
are
also
on
its
conviction
list.
The
investment
bank
said
it’s
“one
of
the
key
beneficiaries
of
the
growth
in
AI
servers,”
noting
that
the
company
is
“well-positioned”
in
the
high-end
DRAM
segment.
DRAM
refers
to
dynamic
random
access
memory.
It
also
expects
Hynix
and
other
memory
suppliers
to
have
“significant
earnings
growth”
this
year,
thanks
to
a
continued
increase
in
DRAM
pricing
and
some
production
growth.
“We
expect
Hynix’s
inventory
level
for
DRAM
to
reach
close
to
a
normal
range
around
mid-2024,
which
would
be
the
timing
when
suppliers
will
start
considering
wafer
input
increase,”
Goldman’s
analysts
added.
The
bank
has
a
price
target
of
170,000
Korean
won
($129),
implying
potential
upside
of
around
27.3%.
TSMC
Taiwan
Semiconductor
Manufacturing
Company
is
another
stock
that
Goldman
favors.
The
bank
likes
its
“leadership
position”
and
is
of
the
view
that
it
has
a
“long-term
growth
opportunity
underpinned
by
structural
industry
trends.”
Goldman
Sachs
said
it’s
bullish
on
the
stock,
which
is
on
its
conviction
list,
despite
its
“choppy”
near-term
outlook
as
it
expects
the
company
to
“achieve
its
15-20%
revenue
[compound
annual
growth
rate]
target
for
the
next
several
years,
driven
primarily
by
mid-to-high
single-digit
%
silicon
content
growth
and
HPC
demand,
with
[gross
margin]
remaining
at
53%+.”
The
bank
expects
the
price
of
the
Taiwanese
tech
giant
to
hit
758
New
Taiwan
dollars
($24)
in
the
next
12
months,
giving
it
29.8%
upside
potential.
Renesas
Electronics
and
Foxconn
Industrial
Internet
Goldman
also
likes
Japanese
semiconductor
manufacturer
Renesas
Electronics
and
Foxconn
Industrial
Internet
—
the
Shanghai-listed
unit
of
Apple
supplier
Hon
Hai
—
which
were
also
on
its
conviction
list.
Renesas’
“low
P/E
(price-to-earnings)
multiple
makes
it
more
attractive
than
its
peers,”
the
bank’s
analysts
said.
“We
think
the
stock
is
well-positioned
with
prospects
for
share
price
growth
as
it
will
likely
have
the
strongest
leverage
when
the
cycle
recovers
among
our
sector
coverage,”
they
added.
Goldman
gave
the
stock
a
price
target
of
3,300
Japanese
Yen
($22.78)
implying
upside
of
around
37.7%.
Meanwhile,
the
bank
has
a
target
price
of
29
Chinese
yuan
($4.07)
on
Foxconn,
giving
it
around
124.6%
potential
upside.
The
firm’s
merits
include
a
growth
in
revenue
from
its
artificial
intelligence
arm
from
2%
in
2022
to
24%
in
2025,
Goldman
wrote
in
a
separate
December
note.
It
added
that
Foxconn
is
“well-placed
to
capture
strong
AI
demand
growth,”
given
its
broad
exposure
along
the
AI
supply
chain,
from
GPU
(graphics
processing
unit)
modules
to
GPU
baseboards,
AI
servers
and
related
infrastructure.
—
CNBC’s
Michael
Bloom
contributed
to
this
report.
