United Microelectronics gains 15.3% YTD despite an earnings miss, as strategic focus and global resilience fuel long-term promise.
Investors looking for stocks in the Electronics - Semiconductors sector might want to consider either United Microelectronics Corporation (UMC) or Infineon Technologies AG (IFNNY). But which of these two companies is the best option for those looking for undervalued stocks?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
United Microelectronics Corporation (UMC) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, UMC's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross.
United Microelectronics Corporation (NYSE:UMC ) Q1 2025 Earnings Conference Call April 23, 2025 5:00 AM ET Company Participants David Wong - IR Manager Chitung Liu - CFO Michael Lin - Senior Director of Finance Conference Call Participants Sunny Lin - UBS Laura Chen - Citi Brad Lin - Bank of America Merrill Lynch Charlie Chan - Morgan Stanley Gokul Hariharan - JPMorgan Felix Pan - KGI Jason Zhang - CLSA Frank Lee - HSBC Operator Welcome everyone to UMC's 2025 First Quarter Earnings Conference Call. All lines have been placed on mute to prevent background noise.
United Microelectronics (UMC) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.
Taiwan's major chipmaker United Microelectronics and U.S.-based GlobalFoundries are exploring the possibility of a merger, the Nikkei reported on Monday, citing an assessment plan seen by the newspaper.
Geopolitical risks have increased significantly, especially with the U.S. becoming a less reliable ally under President Donald Trump's increasingly isolationist policies. UMC's exposure to AI demand remains, but the market's enthusiasm has cooled, reducing potential upside catalysts. Despite strong fundamentals like a solid dividend yield and a low price to tangible book value ratio, the stock's price support has weakened since the American election in November.
United Microelectronics stock fell 5% after Citibank downgraded it from buy to sell, citing gross margin weakness and competitive pressures. The company reported lower-than-expected earnings for Q4, driven by lower gross margins and non-operating income expenses. Despite challenges, UMC maintains a strong cash position and plans to continue a strong dividend policy.
UMC's Q4'24 results were modestly disappointing, with a small operating miss driven by gross margin pressures, and 2025 guidance that was better than bears feared, but not thesis-changing. Demand should recover in 2025 as inventories have been run down across multiple markets (auto, consumer, industrial, wireless, et al), but pricing remains a risk. UMC's advanced packaging capabilities are a solid positive driver, as is the possibility of increased protectionism driving more volumes to their non-Chinese fabs.
United Microelectronics Corporation (NYSE:UMC ) Q4 2024 Earnings Conference Call January 21, 2025 4:00 AM ET Company Participants Michael Lin - Head of Investor Relations Jason Wang - President Chitung Liu - Chief Financial Officer Conference Call Participants Sunny Lin - UBS Gokul Hariharan - JPMorgan Brad Lin - Bank of America Merrill Lynch Charlie Chan - Morgan Stanley Bruce Lu - Goldman Sachs Jason Zhang - CLSA Operator Welcome everyone to UMC's 2024 Fourth Quarter Earnings Conference Call. All lines have been placed on mute to prevent background noise.
United Microelectronics signs a deal with Fengmiao I Offshore Wind Farm, advancing its net-zero transition with a 42% emissions reduction target by 2030.