DuPont’s Qnity Electronics AI Spin-Off Starts Trading in New York
Qnity Electronics, the new artificial intelligence (AI) spin-off from DuPont de Nemours, has officially begun trading in New York. The company started trading on the New York Stock Exchange on November 3 under the ticker symbol “Q.”
Overview of Qnity Electronics
Qnity Electronics is positioned as one of the leading providers of materials and solutions for the global semiconductor industry. With a workforce exceeding 10,000 employees, Qnity specializes in chemicals and materials essential for manufacturing semiconductors and circuit boards. These components are crucial for a variety of electronic devices and AI data centers.
Market Projections
- The global semiconductor market is expected to expand from $740 billion today to $1.3 trillion by 2030.
- Qnity anticipates its worldwide sales will reach $4.6 billion by 2025, with a significant 80% of its revenue coming from Asia.
- The company claims profit margins of approximately 30%.
Share Distribution and Valuation
Upon Qnity’s launch, shareholders of DuPont received one share of Qnity Electronics for every two shares of DuPont held. Consequently, this spin-out begins trading with about 210 million shares outstanding. Including $3.5 billion in debt, Qnity’s trading valuation stands at 17 times its expected earnings for 2025.
Analyst Recommendations
Wolfe Research quickly initiated coverage on Qnity, granting the stock a Buy rating with a target price set at $110. Initially, trading commenced just below $100 per share.
DuPont Stock Analysis
DuPont de Nemours has garnered a consensus “Strong Buy” rating from a panel of 10 Wall Street analysts. This consensus is based on eight Buy ratings and two Hold ratings issued in the last three months. The average target price for DuPont stock is $94, indicating a potential upside of 176.71% from its current valuation.
