Expectations for two chip stocks, ON Semiconductor and NXP Semiconductors , are now low enough to present a great buying opportunity, according to Raymond James.

Chip stocks have been volatile this month because of trade war developments. August began with President Donald Trump planning to impose a 10% tariff, beginning on Sept. 1, covering $300 billion worth of additional imports from China. But after a large decline in equity markets including semiconductor stocks, the Office of the United States Trade Representative said last Tuesday it would delay the new tariffs on some products until Dec. 15, leading to a rally.

“And while the market is worried about macro weakness, semi estimates have already been reflecting weakness for a year,” Raymond James analyst Chris Caso wrote on Monday. “We are choosing to put some money to work on two names for which we think estimates have been sharply reduced, and where the valuation is remarkably attractive.”

Caso raised his rating for ON Semiconductor (ticker: ON) to Strong Buy from Market Perform. “While the ongoing inventory correction has a negative effect on revenue in the immediate term, we believe the situation allows for a mean reversion in 2020 once the inventory is cleared,” he wrote.

The analyst started his ON price target at $21. He noted how the shares are only trading at about 10 times his estimated 2020 earnings for the company.

The analyst also initiated coverage for NXP Semiconductors (NXPI) with an Outperform rating and a $115 price target.

“We believe NXP has been under-shipping end-market consumption, setting up a favorable backdrop when demand eventually recovers,” he wrote.

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