Do You Have These Semiconductor Stocks On Your Radar?
Semiconductor stocks have been some of the hottest stocks to buy in the stock market this year. By now, most investors would be aware of the semiconductor chip shortage that the world has been facing. This has affected many various industries and the chipmakers are struggling to meet the high demand. While some analysts and investors believe that the worst may be over, the giants in the industry continue to warn against excessive optimism. For instance, Intel’s (NASDAQ: INTC) CEO Pat Gelsinger believes that we will “have some rough road in front of us” and the chip shortage is at its worst right now. Well, the biggest players within the industry are now waiting for the U.S. government to pass the $52 billion CHIPS for America Act. The act aims to incentivize U.S. manufacturing of semiconductors.
Regardless of the outcome, Intel has committed to building two chip-making foundries in Arizona that are expected to be completed by 2024. Intel rival Taiwan Semiconductor (NYSE: TSM) has also claimed that it would invest $100 billion over the three years to boost the supply chain. Besides that, Sony Group (NYSE: SONY) also confirmed today that it may partner with TSM to set up a semiconductor factory in Japan. All these are suggestive that the chip crisis is not over and the need to meet the rising demand is still present. Given these considerations, it is no surprise that the top semiconductor stocks are posting record revenues across the board. With that being said, are these the best semiconductor stocks to watch in the stock market today?
Best Semiconductor Stocks To Buy [Or Sell] Before November 2021
- Advanced Micro Devices, Inc (NASDAQ: AMD)
- Xilinx, Inc (NASDAQ: XLNX)
- Texas Instruments Incorporated (NASDAQ: TXN)
- Silicon Laboratories Inc (NASDAQ: SLAB)
Advanced Micro Devices
First, on the list, we will be looking at the global semiconductor company Advanced Micro Devices (AMD). In essence, the company’s products include x86 microprocessors, accelerated processing units, graphics processing units (GPUs), and chipsets for various markets. AMD stock has risen more than 50% over the past year.
Yesterday, the company announced its third-quarter financial update. Impressively, the company had another record quarter with revenues coming in at $4.3 billion, up by 54% year-over-year. Meanwhile, its net income and operating income more than doubled compared to the prior year’s quarter. Safe to say, AMD is firing on all cylinders and is on track to finish the year strongly.
Not to mention, AMD recently announced that its Ryzen™ Threadripper™ PRO processors will help power the new GeForce NOW RTX 3080 membership tier from NVIDIA (NASDAQ: NVDA). NVIDIA’s GeForce SuperPods will leverage the company’s Ryzen Threadripper PRO with unparalleled core counts and high-frequency clock speeds to support over 39 petaflops of graphics performance. Again, this is a testament to AMD’s class-leading products and offerings in recent years. With that in mind, could AMD stock continue its current momentum?
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Xilinx
Following that, we have the semiconductor company, Xilinx. Put simply, it engages in designing and developing programmable devices and associated technologies. These include integrated circuits (IC), three-dimensional ICs, and Adaptive Compute Acceleration Platform. Despite trading at its all-time high, XLNX stock continues to push on.
Xilinx is another semiconductor company that recently announced its quarterly report. During the quarter, it posted a record revenue of $936 million, representing a 22% growth year-over-year. In addition, its GAAP net income for the quarter was $235 million, an increase of 21% compared to the prior year’s quarter. These results are driven by record performance from the Industrial, Auto, Broadcast, and Consumer end markets.
On top of that, the company announced on Tuesday that it will provide the industry’s first and only production-ready multimedia streaming end solutions for broadcast and professional audio/video (AV) applications. These solutions are ready-to-ship, or ready to customize, making it significantly faster and easier for customers to bring broadcast and professional AV products to market. All things considered, would XLNX stock be a top semiconductor stock to buy now?
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Texas Instruments
Texas Instruments is a company that designs, makes, and sells semiconductors to electronics designers and manufacturers across the world. It operates through segments such as Analog and Embedded Processing. TXN stock has climbed more than 30% over the past year.
Earlier this month, Texas Instruments introduced the industry’s most accurate 3D Hall-effect position sensor. With the TMAG5170, engineers can now achieve uncalibrated ultra-high precision for faster and more accurate real-time control in factory automation and motor-drive applications. Besides that, it also provides integrated functions and diagnostics to maximize design flexibility and system safety. This would address the increasing number of highly automated systems that must operate in a more integrated manufacturing flow.
Financially, the company continues to strengthen its foundations. For its third quarter, Texas Instruments posted revenue of $4.6 billion, an increase of 22% year-over-year. Also, its earnings per share increased to $2.07, two cents above most analysts’ expectations. That said, investors are staying cautious as there are concerns that the demand for electronic components may decelerate. If you believe the company could continue to push on, could this be an opportunity to buy TXN stock on the dip?
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Silicon Laboratories
To sum up the list, we will be looking at Silicon Laboratories. In detail, the company is a provider of silicon, software, and solutions for the Internet of Things (IoT), industrial, and consumer markets. Its product categories include wireless connectivity, microcontroller, and sensor products. SLAB stock has risen by over 20% this week following the announcement of its earnings report.
Investors appear to be responding positively to the company’s better-than-expected third-quarter financial update. For instance, its revenue from continuing operations exceeded the top of the guidance range at $185 million, an increase of 39% year-over-year. Furthermore, its adjusted EPS was $0.34, far exceeding expectations for $0.15. These results reflect the long-term trends continuing to boost demand for its IoT market.
A decade ago, the company had set its sights on being one of the leaders in IoT. Today, IoT solutions are being adopted at a rapid pace in large, fast-growing home and industrial end markets. Given these factors, Silicon Laboratories appears to be in a favorable position for long-term growth. So, do you think SLAB stock is worth investing in now?
