Which Semiconductor Stocks Should You Buy?

  • (0:45) - Is It Time To Invest In Semiconductors?
  • (2:00) - What Is Causing The Industry To Move So Much Right Now?
  • (6:15) - Breaking Down Who Does What: The Ins and Outs of Semiconductors
  • (10:40) - Understanding The Semiconductors Current Performance
  • (17:30) - Where Should Investors Be Looking To Invest?
  • (28:30) - Episode Roundup: INTC, AMD, QCOM, XLNX, TSM, NVDA, MU, LRCX, AMAT, AVGO, TXN, SOXX, SMH, FIVG, KEYS
  •     Podcast@Zacks.com


Welcome to Episode #235 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week, Tracey is joined by Zacks Senior Stock Strategist, Kevin Cook, to talk about the semiconductor stocks.

They aren’t all the same. They each have their own niche in the semiconductor eco-system.

Which one should you buy? Or should you buy more than one?

What about buying the semiconductor ETFs in order to buy a basket of the stocks?

AMD v Intel

Advanced Micro Devices AMD shares are soaring after a solid earnings report and news out of competitor Intel INTC that they are behind on their development of the 7nm chip.

To find out more about the impact on AMD, check out Kevin’s recent Cook’s Kitchen video talking about it all here.

Analysts believe this gives AMD a distinct business advantage and they’ve raised price targets.

But AMD is now trading at 70x forward earnings. Is it too hot to handle or should you jump in?

The 5G Trade v Gaming

Investors may want to invest in emerging technologies like 5G or in the hot gaming industry.

Qualcomm QCOM is one of the names that will benefit from the rollout of 5G. It has a forward P/E of just 28.

On the gaming side, NVIDIA NVDA is almost untouched but you’ll have to pay a high price for the shares as it trades with a forward P/E of 55 and a PEG of 3.3.

The Building Block Stocks

Or maybe you should buy one of the foundry companies like Taiwan Semiconductor TSM which manufactures chips for the other companies like AMD.

It is the building block of the entire industry.

Taiwan Semi trades with a forward P/E of 25.2 and a PEG of just 1.3.

What else should you know about the various companies and ETFs in the hot semiconductor industry?

Tune into this podcast to find out.

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NVIDIA Corporation (NVDA): Free Stock Analysis Report
Intel Corporation (INTC): Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
QUALCOMM Incorporated (QCOM): Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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