The semiconductor sector is pivotal to the global technology landscape, producing the essential chips that power everything from smartphones and computers to cars and industrial machines. This industry is marked by rapid innovation and growth, driven by increasing demand for more advanced and efficient electronics. Semiconductor stocks often reflect the sector’s dynamic nature, capturing the interest of investors looking for growth opportunities in cutting-edge technology.
Investing in semiconductor stocks comes with several advantages. These companies are at the forefront of technological advancements and often experience significant growth during periods of high demand for electronics. Additionally, the sector’s expansion into new markets like electric vehicles and renewable energy technologies offers long-term growth prospects. However, semiconductor stocks can also be volatile. They are heavily influenced by factors like global supply chain disruptions, changes in technology, and economic cycles that affect consumer and business spending.
The high capital costs for research, development, and fabrication facilities are a major challenge for semiconductor companies. This can lead to significant barriers to entry and can impact profitability during downturns when demand wanes. Despite these risks, the semiconductor sector remains a key area for investors looking to gain exposure to the technology sector’s growth potential. If this has you keen on investing in the semiconductor sector, here are two companies to watch in the stock market right now.
Semiconductor Stocks To Buy [Or Avoid] Today
- Advanced Micro Devices Inc. (NASDAQ: AMD)
- Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM)
Advanced Micro Devices (AMD Stock)
To begin, Advanced Micro Devices Inc. (AMD) is a global semiconductor company. AMD designs and produces microprocessors, motherboard chipsets, embedded processors, and graphics processors for servers, workstations, personal computers, and embedded system applications. Known for its Ryzen and EPYC series of processors, the company focuses on high-performance computing, gaming, and data center segments.
This week, Advanced Micro Devices announced that it will release its fiscal first quarter 2024 financial results on April 30, 2024, after market close. A conference call to discuss these results will be held at 5:00 p.m. EDT / 2:00 p.m. PDT the same day. Interested parties can listen to the webcast of the call on the AMD Investor Relations website. To briefly recap, last quarter AMD reported earnings of $0.78 per share, on revenue of $6.17 billion.
Year-to-date, shares of AMD stock are up 11.58% so far. Though, the last month of trading, AMD stock has retreated by 18.80%. Moreover, on Thursday morning, Advanced Micro Devices stock is trading green by 0.31% at $154.49 a share.
[Read More] 3 Blue Chip Stocks For Your April 2024 Watchlist
Taiwan Semiconductor Manufacturing Co. (TSM Stock)
Second, Taiwan Semiconductor Manufacturing Company Ltd. (TSM), commonly known as TSMC, is the world’s leading semiconductor foundry, manufacturing a large percentage of the world’s integrated circuits and serving as a pivotal player in the global electronics supply chain.
Today, TSMC reported better-than-expected results for its most recent first-quarter 2024 financials. Diving in, the company notched in an EPS of $1.38 per share, and revenue of $18.87 billion for Q1 2024. Additionally, the company said it expects Q2 revenue to come in between $19.60 billion to $20.40 billion.
So far this year, shares of TSM stock have jumped by 30.26%. Meanwhile, during Thursday morning’s trading action, TSMC stock opened lower by 4.80% at $132.36 a share.
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