5N (VNP) & Celestica: How are TSX semiconductor stocks amid protests?

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 5N (VNP) & Celestica: How are TSX semiconductor stocks amid protests?
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Highlights

  • The anti-lockdown protests that led to a blockade on the Canadian side of the Ambassador Bridge this week is said to have hampered the US-Canada auto supply chain significantly, even leading to some operational shutdowns.
  • This disruption adds on to the automobile space’s other troubles, a prominent one among them being the supply shortage of semiconductors.
  • A Canadian semiconductor stock swelled by almost 73 per cent in the past six months.

The anti-lockdown protests that led to a blockade on the Canadian side of the Ambassador Bridge this week is said to have hampered the US-Canada auto supply chain significantly, even leading to some operational shutdowns. 

This disruption adds on to the automobile space’s other troubles, a prominent one among them being the supply shortage of semiconductors. 

While chip shortages have been bothering Canada for a while now, a recent report by Ottawa-based think tank MacDonald Laurier Institute explored how the country could benefit from partnering with Taiwan on this front.  

Let’s see how some Canadian semiconductor companies have been doing recently. 

Also read: 2 Canadian semiconductor stocks to explore in 2022

5N Plus Inc (TSX: VNP) 

5N Plus manufactures speciality semiconductors and performance materials equipped with its proprietary technologies. Headquartered in Montreal, the semiconductor company has its facilities located globally across North America, Europe and Asia. 

5N Plus has said that despite the global supply chain crunch, robust demand for eco-friendly materials increased its revenue by 28 per cent year-over-year (YoY) to US$ 50.8 million in the third quarter of fiscal 2021. 

Stocks of 5N Plus soared by over four per cent to close at C$ 2.46 apiece on Wednesday, February 9. The semiconductor stock is up by over 19 per cent from its 52-week low of C$ 2.06 apiece (December 15, 2021). 

 NexOptic (NXO) stock performance

Image source: © 2022 Kalkine Media® 

Celestica Inc (TSX: CLS) 

The electronic manufacturing service (EMS) enterprise saw its top line surge by nine per cent YoY to a total of US$ 1.5 billion in  Q4 2021.

The Toronto, Ontario-based hardware tech company, which currently holds a price-to-earnings (P/E) ratio of 14.8, has said that it expects its revenue to reach at least US$ 6.3 billion in fiscal 2022. 

Stocks of Celestica Inc closed at a value of C$ 15.4 apiece on Wednesday, having shot up by about 72 per cent from its 52-week low of C$ 8.8.94 per share. 

Celestica’s market cap currently stands at C$ 1.92 billion. 

Also read: Algonquin (AQN) & Magna (MG): 2 TSX large-cap stocks on sale right now  

Bottomline

Canada’s automotive industry is not the only space that has taken a hit from the worldwide crunch of semiconductors. Industries such as toys, electronics, home appliances, etc have also seen production delays due to it. 

However, all hope may not be lost just yet. The Canadian Semiconductor Council, in November last year, shared a robust game plan that can help the country become a leader in the semiconductor market. 

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