While Apple Inc. (NASDAQ: AAPL) is a dominant technology player, it also tends to have peaks and valleys in its various business lines, which can expose vendors to inconsistent orders and earnings. Plus, the company announced recently it is planning to use its own chips in Macintosh computers starting in 2020. So for technology investors looking to stay on what has been a very hot semiconductor ride, it may make sense to focus on companies with little or no exposure to Apple.
We screened the Merrill Lynch research database for semiconductor stocks rated Buy that have far less exposure to Apple, and found five companies that look like outstanding buys right now. While they do have an ongoing Apple presence, lower iPhone X sales should not be an issue. Merrill Lynch lowered Apple supplier estimates on Friday.
The industry also was hit on Friday as Taiwan Semiconductor Manufacturing cut forward guidance, a cut many feel is a result of slowing business from Apple. So investors are being offered nice entry points.