The semiconductor sector is integral to the global tech landscape, supplying essential components for a vast array of electronic products. These chips are pivotal in everything from computing and mobile devices to sophisticated automotive systems and smart appliances. The industry is on the frontline of innovation, pushing the boundaries of chip performance and efficiency. It encompasses a diverse array of companies, including chip manufacturers, design firms, and those supplying critical semiconductor production equipment.
Investors eyeing semiconductor stocks focus on the industry’s potential for robust growth. Fueled by the relentless demand for advanced electronics and new tech frontiers like 5G, AI, and IoT. Additionally, the sector’s expansion into emerging markets and technologies offers promising growth avenues. On the flip side, the semiconductor industry faces unique challenges. It is cyclically sensitive, with demand fluctuations impacting profitability. The industry also demands high capital expenditure for R&D and production facilities, influencing financial outcomes.
For those investing in semiconductor stocks, a deep dive into industry dynamics, supply chain complexities, and technology evolution is imperative. These stocks present opportunities for potentially significant gains. However, they also carry the risk of market volatility, global economic shifts, and policy changes. With that being said, let’s look at two semiconductor stocks to watch in the stock market today.
Semiconductor Stocks To Buy [Or Avoid] Now
- Advanced Micro Devices Inc. (NASDAQ: AMD)
- Nivida Corporation (NASDAQ: NVDA)
Advanced Micro Devices (AMD Stock)
Starting off, Advanced Micro Devices, Inc. (AMD) is an American multinational semiconductor company. The company specializes in developing computer processors and related technologies for business and consumer markets. AMD is known for its CPUs and GPUs, catering to a wide range of applications from personal computing to gaming and data centers.
This week, AMD announced when it will report its fourth quarter and full year 2023 financial results. In detail, the company is set to report its Q4 2023 and full-year 2023 financial results on Tuesday, January 30, 2024, following the close of the U.S. stock market. To quickly recap, last quarter AMD beat expectations and notched in an EPS of $0.72 with revenue of $5.8 billion.
In the last month of trading, AMD stock has increased by 18.10%. Meanwhile, during Thursday’s mid-morning trading session, Advanced Micro Devices stock is trading higher on the day by 2.36% at $163.94 a share.
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Nvidia Corporation (NVDA Stock)
Next, NVIDIA Corporation (NVDA) is a leading technology company. The company is established as a significant force in the semiconductor industry, NVIDIA is well known for its graphics processing units (GPUs) and system-on-chip units (SoCs) for mobile computing and automotive markets. Additionally, NVIDIA’s expertise also extends to artificial intelligence hardware and software, with its professional GPUs being integral in various industries including architecture, engineering, and scientific research.
Earlier this month, NVIDIA announced new GeForce RTX™ SUPER desktop GPUs, AI laptops from top manufacturers, and RTX™-accelerated AI software and tools for developers and consumers. These innovations aim to enhance generative AI performance on PCs and workstations. Also, NVIDIA is introducing tools like NVIDIA TensorRT™ for Stable Diffusion XL and NVIDIA RTX Remix for AI texture tools and others.
In the past month of trading, NVIDIA stock is trading higher by 14.47%. While, during Thursday’s mid-morning trading session, shares of NVDA stock have jumped by 2.27%, currently trading at $573.26 a share.
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