MANGO stocks, a new term investors are adding to their vocabularies today, are a group of semiconductor stocks. This new acronym, a riff on the Nasdaq Composite’s top-performing FAANG tech stocks, is generating interest. So what are the MANGO stocks and what else do you need to know?
Like the fruit, MANGO stocks have provided sweet returns for investors recently. Bank of America analyst Vivek Arya suggests this group of chip stocks — Marvell Technology (NASDAQ:MRVL), Advanced Micro Devices (NASDAQ:AMD), Broadcom (NASDAQ:AVGO), Analog Devices (NASDAQ:ADI), Nvidia (NASDAQ:NVDA), GlobalFoundries (NASDAQ:GFS) and ON Semiconductor (NASDAQ:ON) — could be leaders in the future economy. Notably, this analyst believes that these chip stocks can outperform despite various market concerns right now.
Finding a group of stocks that is able to weather this current environment is what many investors are after. Indeed, there is an impressive amount of uncertainty weighing on Wall Street right now. Investors are concerned with inflation, interest rate hikes, geopolitical tensions and supply chain bottlenecks.
The semiconductor sector is exposed to these issues. However, there are reasons why analysts are growing increasingly bullish on these stocks.
Let’s dive into what investors may want to consider with chip stocks right now.
Why MANGO Stocks Could Outperform
Despite the impacts of the pandemic and supply chain woes on chip makers, the Bank of America analyst believes there is reason to be bullish on MANGO stocks. This is because demand has been increasing for chips for some time, and the underlying technology is improving. Assuming these tailwinds remain in place, MANGO stocks could be key winners.
Additionally, Arya sees a few other things to like about chip stocks. Many of the names in the MANGO acronym have ties to the cloud and artificial intelligence. Others are in the electric vehicle space.
Most investors can wrap their heads around this rather easy-to-understand thesis. While semiconductor stocks have struggled this year, the for this sector remain bright. Thus, MANGO stocks are the new tech grouping investors may want to keep on their radar right now.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.