The semiconductor industry plays a crucial role in the global technology sector, powering everything from smartphones and computers to automobiles and industrial machinery. Companies in this industry design and manufacture semiconductor chips, which are essential components for a wide range of electronic devices. The market for semiconductors is characterized by rapid technological advancements and significant research and development investment.
Investing in semiconductor stocks offers potential for high returns, as demand for electronic devices and advanced technologies continues to grow. These stocks are often volatile, however, reflecting the fast-paced changes in technology and competitive market landscape. Investors can benefit from the sector’s growth potential. Though, investors should prepare for fluctuations driven by supply chain issues, global economic conditions, and technological shifts.
One disadvantage of investing in semiconductor stocks is their sensitivity to global supply chain disruptions and changes in technology. Companies must continuously innovate to stay ahead, which can involve substantial financial risk. Despite these challenges, the semiconductor sector remains a vital and potentially lucrative area for investment, particularly for those who believe in the continued expansion of tech-driven markets. If this has you keen on investing in the semiconductor sector, here are three semiconductor stocks to watch in the stock market today.
Semiconductor Stocks To Buy [Or Avoid] Today
- Advanced Micro Devices Inc. (NASDAQ: AMD)
- Texas Instruments Incorporated (NASDAQ: TXN)
- NVIDIA Corporation (NASDAQ: NVDA)
Advanced Micro Devices (AMD Stock)
First off, Advanced Micro Devices, Inc. (AMD) is a semiconductor company that develops computer processors and related technologies for business and consumer markets. The company is popular for its Ryzen and Epyc series of processors. Additionally, AMD competes in the CPU and GPU markets, offering products that power a wide range of computing devices from desktops to servers.
This month, Advanced Micro Devices Inc. announced its continued dominance in high-performance computing (HPC) at ISC High Performance 2024. AMD powers 156 of the Top500 supercomputers, marking a 29% increase from last year. The Frontier supercomputer, located at Oak Ridge National Lab and utilizing AMD EPYC CPUs and AMD Instinct GPUs, remains the world’s fastest with a score of 1.2 exaflops. In addition, AMD’s new Alveo V80 compute accelerator card, which doubles the HBM bandwidth for HPC and compute-intensive workloads, is now shipping.
Year-to-date, shares of AMD stock have increased by 19.88% so far. Meanwhile, during Monday’s late morning trading session, Advanced Micro Devices stock is trading up 1.07%, at $166.22 a share.
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Texas Instruments (TXN Stock)
Second, Texas Instruments Incorporated (TXN) is a global semiconductor design and manufacturing company. The company develops analog ICs and embedded processors. By producing chips that are essential in everything from mobile devices to industrial systems, Texas Instruments plays a critical role in the electronics supply chain.
Late last month, Texas Instruments announced better-than-expected Q1 2024 financial results. In detail, the company notched in first-quarter 2024 earnings of $1.20 per share, on revenue of $3.66 billion. For context, this is versus analysts’ consensus estimates for the quarter which were earnings estimates of $1.06 per share, with revenue of $3.61 billion.
In 2024 thus far, shares of Texas Instruments stock have jumped higher by 16.52% YTD. While, on Monday morning TXN stock is trading green up 1.11%, currently trading at $197.18 a share.
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NVIDIA Corporation (NVDA Stock)
Last but not least, NVIDIA Corporation (NVDA) specializes in graphics processing units (GPUs) and has a significant presence in gaming, professional visualization, data centers, and automotive markets. Beyond hardware, NVIDIA is also deeply involved in artificial intelligence research and development, providing advanced solutions that drive innovation in various technology sectors.
At the start of this month, NVIDIA Corporation announced it will host a conference call this week Wednesday, May 22, 2024 to discuss its first-quarter financial results for fiscal year 2025. The results cover up to April 28, 2024. This conference call will include a Q&A session. Additionally, NVIDIA will provide a written commentary from CFO Colette Kress, available after the results are announced at 1:20 p.m. PT on the same day.
Year-to-date, NVIDIA stock is up an impressive 96.43% so far. Moreover, during Monday’s late morning trading action, shares of NVDA stock are green up 2.26%, trading at $945.68 a share.
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