We recently published a list of 10 Most Oversold Semiconductor Stocks in 2024. In this article, we are going to take a look at where Vishay Intertechnology, Inc. (NYSE:VSH) stands against other most oversold semiconductor stocks in 2024.
The semiconductor industry is a crucial pillar of global technological development, providing essential components for various industries, from consumer electronics to industrial automation. Despite its long-term growth potential and innovation, several semiconductor companies underperformed significantly in 2024. These companies were impacted by internal and external factors such as geopolitical tensions and changing regulatory landscapes. For 2024, even the broader Philadelphia Semiconductor Index (SOX), which tracks the performance of the largest U.S.-traded semiconductor companies, returned 19.2%, lagging behind the S&P 500 Index’s 23% return.
In a mid-2024 CNBC interview, Stacey Rasgon, Managing Director at Bernstein Research, highlighted that U.S. semiconductor companies are at a disadvantage due to these restrictions, potentially limiting their growth and competitiveness in the global market. He also attributed uncertainties in Taiwanese businesses to comments from Mr. Trump, the then-presidential candidate, regarding Taiwan.
Certain sectors within the semiconductor industry also faced weaker-than-expected demand in 2024, particularly in consumer electronics and traditional automotive sectors. Despite strong growth prospects in AI, data centers, and automotive technologies, companies more exposed to legacy industries experienced slower demand, leading to weaker earnings. Deloitte’s 2025 global semiconductor industry outlook described this as a “tale of two markets”: companies in the generative AI chip market outperformed, while those without exposure (such as automotive, computer, smartphone, and communications semiconductor companies) underperformed.
While the long-term outlook for the semiconductor sector remains positive, short-term volatility and external challenges are creating headwinds for many companies. Companies most exposed to geopolitical tensions, regulatory shifts, and supply chain issues are likely to experience continued underperformance.
Our Methodology
To determine the 10 most oversold semiconductor stocks in 2024, we began by shortlisting all U.S.-listed semiconductor companies with a current market price of over $10 to avoid penny stocks. From these stocks we filtered the stocks which posted negative returns in 2024. We then ranked the bottom 10 companies in descending order based on their 2024 performance. Additionally, we included data on hedge fund holdings in these companies as of Q4 2024 to provide further insight into investor interest.
Note: All pricing data is as of market close on February 19.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up of discrete semiconductors in a manufacturing lab.
Vishay Intertechnology, Inc. (NYSE:VSH)
Share price return in 2024: -28%
Number of Hedge Fund Holders: 31
Vishay Intertechnology, Inc. (NYSE:VSH) is a manufacturer of discrete semiconductors and passive electronic components that cater to innovative designs in various sectors, including automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical markets. Their semiconductor products encompass MOSFETs, diodes, and optoelectronic components, while their passive components include resistors, inductors, and capacitors. These products serve a multitude of functions such as power control, conversion, and management, signal switching, routing, blocking, current flow regulation, voltage surge suppression, energy storage, and discharge.
In 2024, Vishay Intertechnology, Inc. (NYSE:VSH)’s share price declined by 28%, with the most significant drop of 36% occurring between August and mid-November. This decline was attributed to weaker Q1 2024 results, highlighting reduced momentum in industrial and automotive end markets due to customer inventory adjustments. Additionally, softness in MOSFETs, diodes, optoelectronics, resistors, and capacitor product lines contributed to the negative sentiment. Revenue declined across all end markets, resulting in a 14.3% year-over-year (YoY) decrease in total revenue for Q1 and a 72% drop in EPS to $0.22.
Following these results, Vishay Intertechnology, Inc. (NYSE:VSH) focused on its strategic growth levers by investing in catch-up capacity, strengthening customer relationships, and advancing its silicon carbide strategy to prepare for the next demand upcycle. The company’s strong market position, particularly in the industrial and automotive segments, is anticipated to provide robust growth opportunities in the coming years. After ending 2024 on a negative note, Vishay Intertechnology, Inc. (NYSE:VSH) shares have gained 13% in 2025. That said, analysts still appear bearish on the name as consensus shows a potential for 6% downside from current levels, as of February 19.
Overall, VSH ranks 10th on our list of most oversold semiconductor stocks in 2024. While we acknowledge the potential of VSH to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VSH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
