5 Top Semiconductor Stocks To Consider Adding To Your Radar Right Now
With the broader stock market taking a breather from its recent rally, semiconductor stocks appear to be in fashion. To begin with, the Labor Department’s latest report showed a notable decline in the recovery of the U.S. job market. This would be the case as non-farm payrolls came in at 235,000 throughout the month, well below the 733,000 estimates. With this significant piece of labor market data out, investors could be looking at more long-term plays in the stock market today. Accordingly, this would be where semiconductor stocks come into play.
For the most part, semiconductors are now a fundamental component of most tech in our world today. As such, some of the top semiconductor stocks in the market could be in focus. This could especially be true as the industry kicks into high gear to meet rising demands. Even now, companies such as Nvidia (NASDAQ: NVDA) and Qualcomm (NASDAQ: QCOM) continue to turn heads. On one hand, investment firm Jefferies (NYSE: JEF) raised its price target on NVDA stock and reiterated a Buy rating. On the other hand, Qualcomm introduced breakthrough audio tech that maintains the sound quality of music for wireless earphones. Having read this far, you may be interested in semiconductor stocks yourself. In that case, here are five worth knowing in the stock market this month.
Top Semiconductor Stocks To Buy [Or Sell] This Month
- Microsoft Corporation (NASDAQ: MSFT)
- Taiwan Semiconductor Manufacturing Company (NYSE: TSM)
- Advanced Micro Devices Inc. (NASDAQ: AMD)
- Skyworks Solutions Inc. (NASDAQ: SWKS)
- Intel Corporation (NASDAQ: INTC)
Microsoft Corporation is a multinational tech corporation that produces computer software, consumer electronics, and related services. Notably, the company is developing its own semiconductor chips for use in the servers that support its Azure cloud computing services, as well as to power its Surface line of personal computers. MSFT stock currently trades at $302.07 as of 12:24 p.m. ET and is up by over 35% year-to-date.
In late July, the company announced its fourth-quarter results for its fiscal 2021. Firstly, the company posted revenue of $46.2 billion, an increase of 21% year-over-year. Operating income for the quarter was $19.1 billion and increased by 42% compared to a year earlier. Net income for the quarter was an impressive $16.5 billion, increasing by 47% year-over-year, or diluted earnings per share of $2.17. This quarter’s performance was fuelled by Microsoft Cloud according to the company. All things considered, will you buy MSFT stock right now?
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Taiwan Semiconductor Manufacturing Company Ltd.
Taiwan Semiconductor Manufacturing Company (TSM) is a multinational semiconductor contract manufacturing and design company. In essence, the company is one of the world’s most valuable semiconductor companies and also the world’s largest dedicated independent semiconductor foundry. The annual capacity of manufacturing facilities managed by TSM and its subsidiaries exceeded 12 million 12-inch equivalent wafers in 2020. TSM stock currently trades at $124.28 as of 12:25 p.m. ET.
On August 10, 2021, the company announced its July 2021 revenue report. Diving in, the company’s revenue for the month was $4.5 billion, an increase of 17.5% from a year earlier. The company also recently plans to raise its prices by 10% to 20% according to a report in the Wall Street Journal. Although the chip foundry does not sell directly to end-users, this price increase will eventually filter through the supply chain. This could potentially affect many industries as TSM’s customers include manufacturers of smartphones, automobiles, and data centers. Given this piece of news, will you consider adding TSM stock to your portfolio?
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Advanced Micro Devices Inc.
Next, we have Advanced Micro Devices (AMD), a semiconductor company that creates CPUs and GPUs for high-performance computing, graphics, and visualization technologies. Hundreds of millions of consumers, leading Fortune 500 businesses and research facilities around the world rely on AMD’s technology. AMD stock also currently trades at $110.66 as of 12:25 p.m. ET and is up by over 30% in the past year alone.
In late August, the company announced that the U.S. Department of Energy’s Argonne National Laboratory (Argonne) has chosen AMD EPYC processors to power a new supercomputer called Polaris. The new supercomputer will prepare researchers for the forthcoming exascale at Argonne called Aurora. It also announced new AMD GPUs that harness the high-performance and energy-efficient AMD RDNA 2 architecture earlier in the month. All things considered, will you buy AMD stock?
Skyworks Solutions Inc.
Following that, we have Skyworks Solutions. In brief, the California-based company primarily focuses on semiconductor chip manufacturing. Through its wares, Skyworks caters to the radio frequency and mobile communications industries. Among its notable end-markets would be the booming 5G industry today. With operations spanning North America, Asia, and Europe, Skyworks is no newcomer to the business. Given the relevance of Skyworks’ offerings, would SWKS stock be worth keeping an eye on now?
As it stands, the company’s shares currently trade at $184.22 a stock as of 12:25 p.m. ET. This would be after gaining by over 140% since its pandemic era low. If anything, the company continues to perform on the financial front amidst the current market conditions. In its third-quarter fiscal posted back in July, Skyworks saw green across the board. Namely, it raked in total revenue of $1.12 billion for the quarter, a solid 51% year-over-year jump. Moreover, the company also posted year-over-year surges of 160% in net income and 162% in earnings per share. Given Skyworks’ current momentum, could SWKS stock be a top buy for you?
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Topping off our list today is the Intel Corporation. By and large, most would be familiar with Intel’s flagship chips today. Chances are, you may be relying on one of its wares to read this article. Without going too much into the details, Intel is an industry-leading player in the semiconductor world today. Through its work with semiconductor chips, Intel aids numerous vital industries globally. Now, INTC stock trades at $53.55 a share as of 12:26 p.m. ET.
On the operational front, the company appears to be keeping busy. Just this week, Intel provided two significant updates. Firstly, the company is now working with Leidos (NYSE: LDOS), an engineering industry titan. In this collaboration, Leidos employs Intel’s Pandemic Response tech to help fight the pandemic via blockchain-based contact tracing solutions. Secondly, Intel is also partnering up with networking tech firm Juniper Networks (NYSE: JNPR). According to Intel, the duo is working to “accelerate advancements in open radio access network ecosystems” Given Intel’s growing list of significant partnerships, would you consider INTC stock worth investing in now?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.