Top Semiconductor Stocks To Watch This Week
Semiconductor stocks were among the best performers in the stock market last year. This was likely due to a surge in demand for all things digital as more people were forced to stay at home. This has inadvertently contributed to a global shortage of semiconductors. This is because almost everything that we use today is powered by semiconductors. The electric vehicle (EV) that you are driving from Tesla (NASDAQ: TSLA) or NIO (NYSE: NIO) is powered by semiconductors. Even the latest gadgets you have today are powered by semiconductor tech from Qualcomm (NASDAQ: QCOM) and Apple (NASDAQ: AAPL).
The outlook however is promising for the sector and could have the foundation it needs to grow in 2021. For instance, President Biden’s infrastructure plan that was announced last week would help strengthen U.S. leadership in semiconductors. The president’s plan to invest ambitiously in U.S. semiconductor workers, manufacturing, and innovation. Congress in January also enacted the CHIPS for America Act in January. The act will create a 40% refundable investment tax credit for qualified semiconductor equipment. This would help U.S. companies strengthen their supply chain to better protect their technology. Given the exciting developments surrounding the industry, will you consider buying these four top semiconductor stocks?
Best Semiconductor Stocks To Buy [Or Avoid]
- Advanced Micro Devices Inc. (NASDAQ: AMD)
- Taiwan Semiconductor Mfg. Co. Ltd. (NYSE: TSM)
- Nvidia Corporation (NASDAQ: NVDA)
- Micron Technology Inc. (NASDAQ: MU)
Advanced Micro Devices Inc.
Advanced Micro Devices or AMD, is a global semiconductor company based in Santa Clara, California. It develops computer processors and related technologies for both business and consumer markets. In detail, it develops the world’s most powerful processors and power devices of all shapes and sizes. From supercomputers to game consoles, the company continues to make huge strides in the semiconductor industry. AMD stock currently trades at $80.91 as of 1:05 p.m. ET.
The company will have a Special Meeting of Stockholders to vote on the proposed acquisition of Xilinx (NASDAQ: XLNX) by AMD on April 7, 2021. The acquisition will bring together two industry leaders with complementary product portfolios and customers. This would include CPUs, GPUs, FPGAs, and deep software expertise. Ultimately, this acquisition would enable leadership in computing platforms for cloud, edge, and end devices. The two companies will also be able to capitalize on opportunities spanning some of the industry’s most important growth segments like gaming and data centers. With so much happening to the company, will you consider buying AMD stock today?
Taiwan Semiconductor Mfg. Co. Ltd.
Taiwan Semiconductor is a Taiwanese multinational semiconductor contract manufacturing and design company. It is a pure-play foundry business company that boasts the world’s largest dedicated semiconductor. For the uninitiated, a foundry is a factory where devices such as integrated circuits (IC) are manufactured. TSM stock currently trades at $123.52 as of 1:05 p.m. ET and has been up by over 130% in the last year.Source: TD Ameritrade TOS
Last week, the company announced that it will be expecting to invest over $100 billion into advanced chips over the next 3 years. This would include expanding its manufacturing capacity to keep up with rising demand. Industry megatrends like 5G and high-performance computing will fuel strong demand for the company’s technology over the next several years. This could ultimately provide solid earnings for the company in the years to come. All things considered, will TSM stock be a top semiconductor stock to add to your portfolio?
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Nvidia is a multinational technology company based in California. It designs graphics processing units (GPUs) for the gaming and professional markets. The company also designs systems on chip units (SoCs) for the mobile computing and automotive market. Nvidia essentially reinvented modern computer graphics and has been a leader in visual computing for decades. In 2018, the company introduced Nvidia RTX ray-tracing technology that has paved the way to new levels of art and realism in real-time graphics. The company’s share currently trades at $557.15 as of 1:06 p.m. ET.
It also reported its fourth-quarter and fiscal 2021 financial results in February. In it, the company posted a record quarterly and full-year revenue. Quarterly revenue was $5 billion, a 61% increase year-over-year. Its full-year revenue was an impressive $16.68 billion, a 53% increase compared to a year earlier. The year certainly reflected a breakout year for Nvidia’s computing platforms. Its pioneering work in accelerated computing has led to gaming becoming the world’s most popular entertainment. Demand for the company’s latest RTX 30 series GPUs has also been off the charts as it has started a major upgrade cycle. Its data center segment also saw a jump of 97% in revenue, at $1.9 billion. For these reasons, will you consider buying NVDA stock?
Micron Technology Inc.
Micron is a world leader in innovating memory and storage solutions that accelerate the transformation of information into intelligence. It has the world’s broadest portfolio of technologies at the core of today’s most significant disruptive breakthroughs such as artificial intelligence and autonomous vehicles. MU stock currently trades at $93.81 as of 1:10 p.m. ET and has doubled in the last year.Source: TD Ameritrade TOS
Last week, the company reported its second-quarter fiscal. The company continues to see strong demand for its products and continues to enjoy robust growth across multiple end markets. Micron also posted a revenue of $6.24 billion, which is an 8% increase year-over-year. GAAP net income for the quarter was $603 million.
“Micron’s strong fiscal second-quarter performance reflects rapidly improving market conditions and continued solid execution,” said Micron Technology President and CEO Sanjay Mehrotra. “Our technology leadership in both DRAM and NAND places Micron in an excellent position to capitalize on the secular demand driven by AI and 5G, and to deliver new levels of user experience and innovation across the data center and intelligent edge.” With that in mind, will you consider buying MU stock?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.