Insights

Could Altium shares benefit from the global chip shortage?

Supply chain headwinds aren’t bad for all companies…
The post Could Altium shares benefit from the global chip shortage? appeared first on The Motley Fool Australia. –

The Altium Limited (ASX: ALU) share price has tracked lower in 2022 and is now in the red by 42% since the start of the year.

At the time of writing, the electronic design software company’s shares have gained 2.32% on the day to trade at $26.29 apiece.

In broad market moves, the S&P/ASX All Technology Index (ASX: XTX) has also slipped in 2022 — by 38% — but is up 1.73% from the open today.

Altium share price to benefit from chip shortage?

Demand and supply gaps for semiconductor chips have led to global shortages of the product. These shortages have plagued many industries since 2020 when the COVID-19 pandemic began.

“Last year, supply tightness dovetailed with the rebound in consumer and business demand, causing a lot of headaches across the supply chain,” says Counterpoint Research.

It says these shortages are starting to ease, and that inventories are starting to build back up in order to fill demand.

“The issue now isn’t shortages but a shock to the system from lockdowns, which is having a domino effect across China at the moment,” it added.

Nevertheless, analysts at Morgan Stanley note the global semiconductor chip shortage could be a net positive for ASX shares such as Altium.

The Morgan Stanley team reckons the market has overlooked how the company is benefiting from the current supply-chain headwinds plaguing global markets, Hans Lee of Livewire writes.

Specifically, global chip shortages have led to a surge in demand for Altium’s products, it says, which is a potential sales tailwind.

The broker values Altium at $35 per share on a buy recommendation.

There are still plenty of other risks to contend with right now for ASX shares. Plus, with the Altium share price down more than 28% in the last 12 months, it has a way to go before recovering to former highs.

The post Could Altium shares benefit from the global chip shortage? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Altium Limited right now?

Before you consider Altium Limited, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Altium Limited wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of January 13th 2022

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Why no news could be good news for the Altium share price
5 things to watch on the ASX 200 on Tuesday
Top brokers name 3 ASX shares to buy next week
2 ASX shares I want to buy more of for my portfolio
Can the Altium share price regain its previous highs in 2022?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Free Share Allocation Reward Levels

STARTER

Class
$ 2,500 Deposit & Trade
  • REWARD^
  • 1 x Marathon Oil Corporation (NYSE:MRO)

ECONOMY

Basic
$ 5,000 Deposit & Trade
  • REWARD^
  • 1 x Pfizer Inc (NASDAQ:PFE)

ECONOMY

Standard
$ 10,000 Deposit & Trade
  • REWARD^
  • 1 x Amazon.com Inc (NASDAQ:AMZN)

ECONOMY

Plus
$ 25,000 Deposit & Trade
  • REWARD^
  • 2 x Apple Inc (NASDAQ:AAPL)
POPULAR

BUSINESS

Class
$ 50,000 Deposit & Trade
  • REWARD^
  • 4 x Apple Inc (NASDAQ:AAPL)

FIRST

Class
$ 150,000 Deposit & Trade
  • REWARD CHOICES^
  • 12 x Apple Inc (NASDAQ:AAPL)
  • 2 x Tesla (NASDAQ:TSLA)
^Please refer to the Free Share Promotion Terms and Conditions for details.

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here To Get Started
FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here For More Info