Semiconductor stocks are referring to the shares of companies that design and manufacture semiconductor products, also known as chips. Actually, semiconductors are the building blocks of electronic devices such as computers, mobile phones, and TVs. As a result, chipmakers are among the most important suppliers to the technology industry. They play a key role in enabling manufacturers to miniaturize devices and make them more powerful. Because semiconductors are essential to so many consumer electronics devices, the semiconductor sector is watched closely by stock market investors.
They also tend to be very volatile, as demand for their products can fluctuate rapidly. For these reasons, semiconductor stocks are popular with investors. When looking for semiconductor stocks to buy, investors typically focus on large, well-established companies such as Intel Corporation (NASDAQ: INTC) and Taiwan Semiconductor Manufacturing Company (NYSE: TSM). These companies have diversified businesses and a long track record of profitability.
While there are many smaller semiconductor companies that may offer more upside potential, they also tend to be riskier. As a result, it is important to do your research before investing in any semiconductor stocks. With this in mind, let’s dive into three top semiconductor stocks to watch in the stock market today.
Semiconductor Stocks To Watch Today
- Micron Technology Inc. (NASDAQ: MU)
- NVIDIA Corporation (NASDAQ: NVDA)
- Advanced Micro Devices Inc. (NASDAQ: AMD)
1. Micron Technology Inc. (MU Stock)
First up, Micron Technology Inc. (MU) is an American multinational corporation. The company specializes in the manufacture of DRAM, NAND Flash, and other semiconductor memory devices. In fact, Micron is one of the largest producers of DRAM in the world. As well as a major player in the development and commercialization of several new memory technologies. Micron’s products are used in a wide range of applications, including consumer electronics, computers, networking, automotive and industrial.
MU Recent Stock News
At the end of last month, Micron announced they will be releasing their 4th quarter 2022 financial results on Thursday, September 29, 2022, after the market closes. In the meantime, let’s recap how Micron performed in its most recent quarterly financial results.
Back at the end of June, the company reported a beat for its third quarter 2022 financial results. In detail, Micron posted third quarter 2022 earnings of $2.62 per share, along with revenue of $8.6 billion. In that report, the company said it estimates fourth quarter 2022 earnings in the range of $1.43 to $1.83 per share. As well as saying that revenue estimates for Q4 2022 were in the range of $6.8 billion to $7.6 billion.
MU Stock Chart
Continuing on, shares of MU stock are down over 48% year-to-date. During Thursday’s mid-morning trading session Micron Technology stock is trading at $49.44 per share. After reading this, will you keep an eye on MU stock ahead of its fourth-quarter earnings release?
2. NVIDIA Corporation (NVDA Stock)
Next, here is a semiconductor giant that needs little to no introduction, NVIDIA Corporation (NVDA). For those unaware, NVIDIA Corporation is an American technology company. The company designs graphics processing units (GPUs) for the gaming and professional markets, as well as system-on-a-chip units for the mobile computing and automotive market.
NVDA Recent Stock News
Moving along, late last month NVIDIA reported its Q2 2023 financial results. In the second quarter of 2023, the company posted earnings of $0.54 per share and revenue of $6.7 billion. This was compared to Wall Street’s consensus estimates for the quarter, which were earnings of $0.52 per share, and revenue of $8.1 billion.
Additionally, NVIDIA said that it returned approximately $3.44 billion in share repurchases and cash dividends for the 3rd quarter. Which is an increase from $2.10 billion in the first quarter of 2023. However, the semiconductor giant did lower its guidance for the third quarter of 2023.
Furthermore, Founder and CEO of NVIDIA Jensen Huang had this to say about the quarter, “We are navigating our supply chain transitions in a challenging macro environment and we will get through this. Accelerated computing and AI, the pioneering work of our company, are transforming industries. Automotive is becoming a tech industry and is on track to be our next billion-dollar business. Advances in AI are driving our Data Center business while accelerating breakthroughs in fields from drug discovery to climate science to robotics.“
NVDA Stock Chart
So far in 2022, shares of NVDA stock have been beaten down by over 58% year-to-date. On Thursday morning, Nivida stock dropped over 5% to $125.49 per share. Given the company’s positioning within the sector, do you think now could be a good time to invest in NVDA stock for your long-term portfolio?
3. Advanced Micro Devices (AMD Stock)
Last but not least, let’s talk about Advanced Micro Devices Inc. (AMD). In short, AMD is an American multinational semiconductor company. In brief, the company develops computer processors and related technologies for business and consumer markets. Currently, Advanced Micro Devices’ product portfolio includes microprocessors, chipsets, graphics processing units (GPUs), and professional services. Additionally, the company’s products are used in a variety of applications, including PCs, game consoles, servers, workstations, and laptops.
AMD Recent Stock News
In August, Advanced Micro Devices announced its 2nd quarter 2022 financial results. Diving right now, the company notched in a record quarterly revenue of $6.6 billion and earnings of $1.05 per share. This revenue increase signifies a 70% increase on a year-over-year basis. What’s more the company reported a record quarter for operating cash flow of more than $1 billion.
In addition to that, AMD reported its forecast for the 3rd quarter of 2022. Q3 2022. Specifically, the company said it projects third-quarter revenue in the range of $26 billion to $26.6 billion. This is versus the street’s revenue estimate for Q3 2022 of $6.86 billion.
The company’s Chair and CEO Dr. Lisa Su. said this about the quarter, “We delivered our eighth straight quarter of record revenue based on our strong execution and expanded product portfolio. Each of our segments grew significantly year-over-year, led by higher sales of our data center and embedded products. We see continued growth in the back half of the year highlighted by our next generation 5nm product shipments and supported by our diversified business model.”
AMD Stock Chart
Similar to the other names mentioned in this article, AMD stock has dropped over 52% year-to-date. While trading down over 4% on Thursday mid-morning at $70.81 per share. Considering AMD stock is currently trading at 56.94% below its current 52-week high, should you be adding AMD stock to your watchlist right now?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.