Semiconductor stocks have been a hot topic in the investment world for the past few years, and for good reason. These companies, which design and manufacture semiconductor chips, are at the forefront of technological innovation. As a result, they are crucial to the growth of many industries, including smartphones, laptops, and automobiles. As the global economy continues to recover from the impact of the COVID-19 pandemic, the demand for semiconductor chips is expected to increase. This makes these stocks a compelling investment opportunity for retail investors.
One of the key factors driving the growth of semiconductor stocks is the increasing demand for high-performance computing and data storage. With the rise of artificial intelligence, the internet of things, and 5G networks, semiconductor chips are becoming more powerful. And with that, more in demand than ever before.
Additionally, the increasing adoption of electric vehicles, which require advanced semiconductor chips for power management, is also fueling demand for these stocks. With the industry expected to continue its growth trajectory in the coming years, investing in semiconductor stocks now could be a smart move for retail investors. With that in mind, check out these three semiconductor stocks to watch in the stock market this month.
Semiconductor Stocks To Buy [Or Avoid] Right Now
- Nvidia Corporation (NASDAQ: NVDA)
- Texas Instruments Inc. (NASDAQ: TXN)
- QUALCOMM Inc. (NASDAQ: QCOM)
Nvidia Corporation (NVDA Stock)
Kicking us off, Nvidia (NVDA) is a technology company. In brief, the company specializes in designing and manufacturing graphics processing units (GPUs) for use in gaming and professional markets. As well as system-on-a-chip units (SoCs) for the mobile computing and automotive market.
Back In November, Nvidia announced that it teaming up with Lockheed Martin (NYSE: LMT) to create a new digital twin of the Earth using Artificial Intelligence (AI). This digital twin will allow the National Oceanic and Atmospheric Administration (NOAA) to have a better understanding of the current global environmental conditions. As well as to help them monitor extreme weather events. The two companies expect to have one of the data pipelines, the sea surface temperature, fully operational by September 2023, one year after the initial contract was awarded.
So far this year, shares of NVDA have started to recover from its 2021 losses as they’re up 16.20% YTD. Meanwhile, on Friday, NVDA stock opened modestly higher by 0.74% at $166.34 a share.
Texas Instruments (TXN Stock)
Next, Texas Instruments (TXN) is a company that designs and manufactures a wide range of semiconductors and electronic devices. The company’s products focus mainly on the industrial, automotive, and communications markets. They also provide a wide range of technology solutions for customers in various industries.
Earlier this month, the company announced it will be hosting a webcast to discuss its financial performance for the fourth quarter of 2022 and the full year on January 24th at 3:30 PM Central time. To quickly recap, in Q3 2022, TXN reported a beat notching in earnings of $2.45 per share and revenue of $5.2 billion for the third quarter of 2022.
Since the start of the year, TXN stock has increased by 8.82%. Meanwhile, during Friday’s mid-morning trading session, shares of Texas Instrument Inc. are trading slightly lower on the day by 0.30% at $177.60 a share.
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QUALCOMM (QCOM Stock)
Lastly, Qualcomm (QCOM) is also a technology company. For starters, the company designs develop, and supplies a range of wireless communication and data technologies and services. This includes cellular modems and processors, integrated circuits, and other wireless components. They also provide wireless communication services, including licensing its intellectual property, which is a significant part of their business.
In November, QCOM reported its Q4 2022 financial and operating results. In detail, the company posted Q4 2022 earnings of $3.12 per share, along with revenue of $11.4 billion for the quarter. This is compared to analysts’ consensus estimates which were earnings of $3.12 per share, and revenue estimates of $11.4 billion. What’s more, QCOM also reported a 22.1% increase in revenue compared to the same period, the previous year.
In 2023 thus far, shares of QCOM have started to bounce by 13.00%. While, on Friday morning, QCOM stock is trading modestly lower on the day by 0.37% at $121.14 a share.
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