Credit Suisse shares its favorite chip stock picks for earnings season

Source: Analog Devices

Semiconductor stocks are undervalued and will keep rallying this year, according to one Wall Street analyst.

The iShares PHLX Semiconductor ETF has risen 43 percent in the past 12-months versus the S&P 500's 22 percent gain in the same time period.

On the chip sector "for the 6th consecutive quarter, we expect an at least in-line C4Q/C1Q with upside bias," analyst John Pitzer wrote in a note to clients Monday. "Semis remain the cheapest, most levered way to play Data (Create, Store, Transmit, Analyze) in the global economy."

Here are four outperform-rated semiconductor stocks recommended by Credit Suisse, along with the firm's current price targets.