Should Investors Be Buying These Semiconductor Stocks Right Now?
In the past couple of years, semiconductor stocks have been a popular sector among investors looking to invest in the stock market. With the growing adoption of 5G mobile networks and electric vehicles, demand for semiconductors has been at an all-time high. This, coupled with the supply chain issues caused by the pandemic, has pushed the prices of semiconductors up. And by extension, this could mean higher profit margins for chip manufacturers.
As such, I could see why some may be putting up a list of top semiconductor stocks to buy. Take Qualcomm (NASDAQ: QCOM) for instance. At the recent Game Developers Conference, the company launched its Snapdragon Metaverse Fund. According to Qualcomm, the fund aims to be a launchpad for extended reality (XR) developers and companies working to build the metaverse. Elsewhere, we have Broadcom (NASDAQ: AVGO) which reported its earnings last month. Driven by strong enterprise demand, the company achieved record first-quarter results and provided positive guidance for the next quarter. With all that in mind, watch out for these four semiconductor stocks in the stock market today.
Semiconductor Stocks To Watch This Week
- Intel Corporation (NASDAQ: INTC)
- Semtech Corporation (NASDAQ: SMTC)
- Micron Technology Inc. (NASDAQ: MU)
- NVIDIA Corporation (NASDAQ: NVDA)
Intel
Starting us off today is one of the leaders in the semiconductor industry, Intel. In detail, the company engages in the design and manufacturing of products and technologies. Intel is known for being a developer of the x86 series of microprocessors that are found in most personal computers (PCs). This would include the likes of your everyday laptops from computer manufacturers such as Dell (NYSE: DELL) and HP (NYSE: HPQ).
A lot seems to be happening at Intel recently. For starters, last week, the company announced the acquisition of Granulate Cloud Solutions, an Israel-based developer of real-time continuous optimization software. This strategic move will help Intel’s cloud and data center customers to maximize compute workload performance and reduce infrastructure and cloud costs. The deal is rumored to be worth $650 million.
In other news, Intel is launching its Intel Arc range of GPUs for laptops. Notably, this would represent the company’s first foray into the discrete GPU market. Its Intel Arc A-Series graphics will arrive first on laptops whilst desktop and workstation GPUs will only come later this year. With Intel entering the discrete GPU market, should you be keeping tabs on INTC stock?
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Semtech
Another semiconductor company investors should be on the lookout for is Semtech. For the most part, is a leading global supplier of analog and mixed-signal semiconductor products. In addition to that, it also supplies advanced algorithms for infrastructure, high-end consumers, and industrial equipment. Last week, Semtech entered into a collaboration with Indian-based Enthu Technology and Xorowin Mechatronics.
Namely, Semtech will be offering its LoRa devices and LoRaWAN for Enthu’s and Xorowin’s SIPOAL self-powered electromechanical controller for industrial use cases. Essentially, this will enable the two companies to provide solutions for the industry’s automation needs. Other than that, earlier last month, Semtech announced its fourth-quarter results.
The semiconductor firm brought in net sales of $190.55 million for the quarter, up by 15.7% when compared to prior year sales of $164.67 million. Next to that, GAAP diluted earnings per share came in at $0.53, a substantial increase from last year’s $0.24. As for its first-quarter outlook, the company expects net sales to be in the range of $195 million to $205 million. Besides that, GAAP diluted earnings per share are expected to be in the range of $0.50 to $0.58. Considering all this, would you invest in SMTC stock?
Micron
Micron is an industry leader in the innovative memory and storage solutions industry. It continues to transform how the world uses information to enrich itself. Its portfolio of high-performance products includes DRAM, NAND, and NOR memory and storage products. Most of which are under its Micron and Crucial brands. The company’s technologies help fuel the data economy, enabling advances in AI and 5G.
On March 29, Micron announced results for its second quarter of fiscal 2022. Diving in, the company raked in a total revenue of $7.79 billion for the quarter. This signals a substantial increase compared to the same period last year which brought in $6.24 billion. As for profits, Micron brought in GAAP net income of $2.26 billion. Accordingly, this translates to $2 per diluted share.
As such, Micron’s second-quarter results managed to exceed the high end of its previously quoted guidance for both revenue and margin. CEO Sanjay Mehrotra added, “We’re leading the industry in technology across DRAM and NAND, and our product portfolio momentum is accelerating. With outstanding first-half results, Micron is on track to deliver record revenue and robust profitability in fiscal 2022.” Given this news, should you buy MU stock?
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Nvidia
Nvidia is a multinational tech company that is known for its line of graphics processing units (GPU). In fact, the company invented the GPU and has since paved the way for next-generation computer graphics, high-performance computing, AI, and data centers. Its products and services are used by many industries like manufacturing, transportation, and health care.
Towards the end of last month, Nvidia announced a series of new features for its Nvidia Omniverse platform during the Game Developers Conference. Namely, this includes updates to Omniverse Audio2Face, Omniverse Nucleus Cloud, Omniverse DeepSearch, and the introduction of Unreal Engine 5 Omniverse Connector. Hence, this will make it easier for developers to share assets, sort asset libraries, and deploy AI to animate characters’ facial expressions in future games. At the same time, Nvidia has entered into a strategic collaboration with Kroger (NYSE: KR).
In this collaboration, Nvidia will be providing Kroger AI-enabled applications and services. Notably, the two companies will be building a state-of-the-art AI lab and demonstration center. Evidently, this facility will initially use nine Nvidia DGX A100 systems, InfiniBand networking, and RTX workstations to gather insights on the grocer’s nearly 2,800 stores across the U.S. With this collaboration in place, should you add NVDA stock to your watchlist?
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