Are These Top Semiconductor Stocks On Your October 2021 Watchlist?
While investors consider why stocks are down in the stock market today, the case could be building for semiconductor stocks. After all, with virtually most tech in the world today relying on semiconductor chips, global demand remains strong. So much so that even as the broader tech industry faces pressures from increasing Treasury yields today, some could see opportunity among the top names in the space. Moreover, semiconductor companies appear to be gaining momentum as they ramp up their operations to meet growing global demands.
Just this week, AMD (NASDAQ: AMD) CEO Lisa Su provided a rather upbeat outlook on the current chip shortages. According to Su, supply restrictions could ease in the latter half of 2022. Overall, her reasoning for this lies in the current efforts across the industry to improve chip manufacturing facilities. Companies that are making such plays will likely have their new and improved plants operating within the next few months. Even now, the likes of Skyworks Solutions (NASDAQ: SWKS) continue to thrive. In its latest fiscal quarter, the company saw green across the board. In short, this added up to year-over-year gains of over 160% in both its net income and earnings per share for the quarter. Considering all of this, could these semiconductor stocks be top picks in the stock market now?
Best Semiconductor Stocks To Watch Right Now
- Micron Technolgy (NASDAQ: MU)
- Nvidia Corporation (NASDAQ: NVDA)
- Qualcomm Inc. (NASDAQ: QCOM)
- Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM)
- Intel Corporation (NASDAQ: INTC)
Micron Technology
Micron Technology is an innovative memory and storage solutions company. It delivers a rich portfolio of high-performance DRAM, NAND, and NOR memory and storage products. The company mainly does this through its Micron and Crucial brands. Also, Micron’s semiconductor products are used to enable advances in artificial intelligence (AI) and 5G applications. The company will be reporting its fiscal fourth quarter after the market closes today.
Last month, Micron announced its new Crucial P5 Plus PCIe SSDs as an expansion of its award-winning NVMe SSD portfolio to offer high-performance internal Gen4 storage options to consumers.
“With data intensive workloads on the rise, consumers increasingly demand high-performance storage solutions for their needs including engineering applications, video editing, content creation and gaming,” said Teresa Kelley, vice president and general manager of Micron’s Consumer Products Group. Given this piece of news, is MU stock worth adding to your portfolio right now?
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Nvidia Corporation
Following that, we have Nvidia Corporation, a multinational technology company with headquarters in California. The company designs graphics processing units (GPUs) that are used by the gaming and professional markets. Notably, the company has made huge strides in the field of AI. As more companies are increasingly data-driven, demand for AI technology will grow and Nvidia will be at the center of the action.
The company in a recent blog post announced that it continues to extend its AI inference performance leadership with either x86 or Arm-based CPUs in this latest benchmark released. This would be the third consecutive time that Nvidia has set records in performance and energy efficiency on inference tests from MLCommons, an industry benchmarking group.
This would also be the first time that its data-center category tests have run on an Arm-based system, giving users more choice in how they deploy AI. With that being said, will you consider watching NVDA stock?
Qualcomm Inc.
Qualcomm is a wireless technology innovator and is one of the pioneers in the development and expansion of 5G. Notably, its foundational technologies enable the mobile ecosystem and is found in every 3G, 4G, and 5G smartphone. The company, in a report titled “Environmental sustainability and a greener economy: The transformative role of 5G” released last week, highlights how 5G can transform and positively impact industries across the globe by creating new products and processes that support environmental sustainability.
Last month, the company announced that it has submitted an offer to acquire Veoneer for $37 per share in an all-cash transaction. This proposed acquisition is consistent with Qualcomm’s growth and diversification strategy. It reinforces the company’s commitment to bring advanced technologies to the automotive industry and represents a natural extension of Qualcomm’s digital chassis solutions.
The company continues to see traction in automotive, with a revenue-design win pipeline of approximately $10 billion. As the automotive industry continues to thrive, this could be a strategic play by Qualcomm to combine its industry-leading automotive solutions with Veoneer’s assisted driving assets. For these reasons, will you be on the lookout for QCOM stock?
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Taiwan Semiconductor Manufacturing Company Ltd.
Next up, we have Taiwan Semiconductor Manufacturing Company, or TSM for short. As the largest presence in the global semiconductor industry, TSM stock could be a go-to for investors right now.
This would be the case given the company’s plans to invest $100 billion towards bolstering its core operations over the next three years. Sure, while these plans are relevant amidst the current chip shortages, TSM would be improving its long-term capabilities as well.
As it stands, the company’s shares have increased by over 150% since its pandemic era low. If anything, TSM continues to press forward on the operational front. Earlier this month, the company reported its August sales figures. In short, TSM raked in a total net income of over $4.94 billion for the month. This adds up to a year-over-year increase of 11.8%. With all the focus on the semiconductor industry, could TSM stock be worth watching in your book?
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Intel Corporation
Last but not least, we will be taking a look at the Intel Corporation. For the most part, consumers and investors alike would be familiar with the company’s work. Accordingly, this is thanks to its wide-spanning reach in the global tech industry.
Today, Intel’s semiconductor chips continue to play crucial roles in personal computers. The likes of which have and continue to see high demand from consumers looking to optimize their work-from-home experience globally.
Well, for one thing, the company does not seem to be resting on its laurels just yet. Last week, Intel commenced construction efforts on its two latest chip factories. The likes of which are worth a combined total of $20 billion. According to CEO Pat Gelsinger, this could help the U.S. catch up to the current semiconductor industry leaders in the long term. As such, will you be keeping an eye on INTC stock now?
