Qnity Electronics (Q), the artificial intelligence (AI) spin-off of DuPont de Nemours (DD), has begun trading in New York.
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Qnity’s stock started trading on the New York Stock Exchange Nov. 3 under the ticker symbol “Q.” Qnity Electronics is one of the largest materials and solutions providers for the semiconductor industry worldwide, with more than 10,000 employees.
More specifically, Qnity provides chemicals and materials that are used to manufacture semiconductors and circuit boards that are found in a wide range of electronic devices and AI data centers. Qnity projects the global market for semiconductors will grow to $1.3 trillion in 2030, up from $740 billion today.
The Numbers
In its regulatory filing ahead of going public, Qnity Electronics projected 2025 worldwide sales of $4.6 billion, with 80% of its revenue coming from Asia, where the bulk of semiconductors are made. Management at Qnity claims that their profit margins are about 30%.
Shareholders of chemical giant DuPont received one share of Qnity Electronics for every two shares of DuPont they held, which should leave the spinout with about 210 million shares outstanding. Including $3.5 billion in debt, Qnity starts trading valued at 17 times expected 2025 earnings.
Wolfe Research has been quick out of the gate with a recommendation on the stock. Wolfe analysts began coverage of Q stock with a Buy rating and $110 price target. The shares opened trading at just under $100.
Is DD Stock a Buy?
The stock of DuPont de Nemours has a consensus Strong Buy rating among 10 Wall Street analysts. That rating is based on eight Buy and two Hold recommendations issued in the last three months. The average DD price target of $94 implies 176.71% upside from current levels.
