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Feature Bespoke 50 Stock: Visteon (VC)
Visteon (VC) is the leading supplier of electronics products like digital dashboard displays for major auto OEMs. The company is benefitting from a huge shift to full digital cluster displays in new cars, and they have their tentacles in all parts of auto technology including EV tech, infotainment, cloud, interior sensing, and AI.
An example of a VC digital display cluster:
Read the comments below from CEO Sachin Lawande on the company’s most recent conference call:
We saw a robust demand for all core products throughout the year that exceeded the supply of semiconductor and other critical components. While our customers vehicle production grew by 5% year-over-year. Our sales grew by a robust 21% when excluding impact of customer recoveries of supply-chain related costs.
Our market outperformance was driven by the recent launches of products that ramped-up production in 2022. The growth over market was higher-than-anticipated due in-part to the rapid ramp-up of our digital cluster program with a North American OEM.
We also benefited from the product mix shifting to higher content products like digital clusters and from smaller legacy displays to larger displays. The automotive industry’s transition to digital clusters, continued in 2022. One out of four new cars being equipped with a digital cluster. This trend benefited Visteon and our digital cluster sales increased by 40% year-over-year.
Digital clusters now represent about half of all clusters shipped by Visteon and was a significant driver of our sales growth in 2022. SmartCore sales grew approximately 75% year-over-year, driven by recent launches with carmakers in Asia. The industry is shifting to-high performance cockpit domain controllers to deliver user experiences that drive on mobile devices, which is helping drive higher SmartCore sales.
The Bespoke 50 performance chart shown does not represent actual investment results. The Bespoke 50 is updated weekly on Thursday. Performance is based on equally weighting each of the 50 stocks (2% each) and is calculated using each stock’s opening price as of Friday morning each week. Entry prices and exit prices used for stocks that are added or removed from the Bespoke 50 are based on Friday’s opening price. Any potential commissions, brokerage fees, or dividends are not included in the Bespoke 50 performance calculation, but the performance shown is net of a hypothetical annual advisory fee of 0.85%. Performance tracking for the Bespoke 50 and the Russell 3,000 total return index begins on March 5th, 2012 when the Bespoke 50 was first published. Past performance is not a guarantee of future results. The Bespoke 50 is meant to be an idea generator for investors and not a recommendation to buy or sell any specific securities. It is not personalized advice because it in no way takes into account an investor’s individual needs. As always, investors should conduct their own research when buying or selling individual securities. Click here to read our full disclosure on hypothetical performance tracking. Bespoke representatives or wealth management clients may have positions in securities discussed or mentioned in its published content.