The semiconductor industry is crucial to modern technology, producing chips that power various electronic devices. These chips are essential for computers, smartphones, automobiles, and many other products we use daily. Semiconductor companies design and manufacture these tiny but complex components. The industry is known for its cyclical nature, with periods of high demand followed by slowdowns.
Semiconductor stocks represent companies involved in chip design, manufacturing, or both. These stocks can offer growth potential due to increasing demand for electronic devices. They often benefit from technological advancements and the expansion of markets like artificial intelligence and 5G. However, semiconductor stocks can be volatile. They are sensitive to economic cycles and global supply chain issues.
Investing in semiconductor stocks can provide exposure to technological innovation and growth. These companies often have strong research and development capabilities. Some also offer dividends, appealing to income-focused investors. But there are risks to consider. The industry faces intense competition and rapid technological changes. Geopolitical factors can impact global supply chains and trade relationships. Investors should research individual companies and understand industry trends before investing. Considering this, here are two semiconductor stocks to watch in the stock market right now.
Semiconductor Stocks To Watch Today
- Micron Technology Inc. (NASDAQ: MU)
- Texas Instruments Incorporated (NASDAQ: TXN)
Micron Technology (MU Stock)
Leading off, Micron Technology Inc. (MU) is a global leader in memory and storage solutions. They produce a wide range of semiconductor products, including DRAM, NAND flash, and NOR flash memory. Micron’s components are used in various applications. From consumer electronics to data centers and automotive systems.
Just this week, Micron Technology announced the launch of their Micron 9550 NVMe SSD. The company claims this new product is to be the world’s fastest data center SSD. It boasts impressive performance metrics, including 14.0 GB/s sequential reads and 10.0 GB/s sequential writes. The 9550 SSD is designed to excel in AI workloads, offering significant improvements over competitors.
In the last six months of trading, shares of MU stock are trading higher by 27.16%. Meanwhile, during Wednesday’s late morning trading session, Micron Technology stock is trading red by 2.02%, at $111.94 a share.
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Texas Instruments (TXN Stock)
Second, Texas Instruments Incorporated (TXN) is a major player in the semiconductor industry, specializing in analog chips and embedded processors. They design and manufacture semiconductors that are sold to electronics designers and manufacturers worldwide. Texas Instruments serves diverse markets, including industrial, automotive, personal electronics, and communications equipment.
This week, Texas Instruments announced better-than-expected second-quarter 2024 financial results. Getting right into it, the company notched in Q2 2024 earnings of $1.22 per share, along with revenue of $3.82 billion. This was versus analysts’ consensus estimates for the quarter that were earning estimates of $1.16 per share, and revenue estimates of $3.80 billion.
Over the last 6 months, shares of TXN stock have increased by 17.08%. While, during Wednesday’s late morning trading session, Texas Instruments stock is trading modestly higher on the day so far by 0.41% at $199.10 a share.
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