Do You Have These Top Semiconductor Stocks On Your Radar Right Now?
Investing in the stock market can be tricky at times. With the resurgence of the tech sector, semiconductor stocks are also back in focus. After all, some consider semiconductors as one of the most important tech industries in the world today. There is no denying that it is very intriguing to invest in semiconductor stocks over the past year. The semiconductor chip shortage has been a global theme over the past year and it has affected many industries that rely on them. That said, it also means that demand for semiconductors is at an all-time high.
Last week, the Semiconductor Industry Association (SIA) announced that global semiconductor sales were $43.6 billion in May 2021 itself. To put it in perspective, this is an increase of 26.2% year-over-year. The industry shipped more units on a three-month moving basis in May than any other month in the market’s history. Naturally, you would see investors showing faith in some of the top names in the industry. For example, we have NVIDIA Corporation’s (NASDAQ: NVDA) stock doubling in price within the past year. Meanwhile, we also have the rise of Advanced Micro Devices, Inc (NASDAQ: AMD) challenging the likes of Intel in the microprocessor industry. Given all these, do you already have a list of some of the best semiconductor stocks in the stock market today?
Top Semiconductor Stocks To Buy [Or Sell] This Week
- Texas Instruments Inc (NASDAQ: TXN)
- Taiwan Semiconductor Manufacturing Co. Ltd (NYSE: TSM)
- International Business Machines Corporation (NYSE: IBM)
- Intel Corporation (NASDAQ: INTC)
Texas Instruments Inc
To start off the list, we have the semiconductor company, Texas Instruments. In detail, the company makes and sells semiconductors to electronics designers and manufacturers globally. As of now, the company operates through two segments, namely, Analog and Embedded Processing. Impressively, TXN stock has risen almost 50% over the past year.
Yesterday, Texas Instruments introduced a new high-performance microcontroller (MCU) portfolio that advances real-time control, networking, and analytics applications at the edge. With its new Sitara AM2x MCUs, engineers could achieve 10 times the computing capability of traditional, flash-based MCUs. This means that designers will be able to push the limits in applications such as factory automation, robotics, automotive systems, and sustainable energy management. Hence, this is an important development as the demand for fast, accurate microcontrollers at the edge is on the rise.
Also, earlier this month, the company announced that it has signed an agreement to acquire Micron Technology, Inc’s (NASDAQ: MU) 300-mm semiconductor factory in Lehi, Utah, for a reported price tag of $900 million. This would continue to strengthen its competitive advantage in manufacturing and technology. So, would you say that Texas Instrument is a top semiconductor company today? If so, would you consider buying TXN stock?
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Taiwan Semiconductor Manufacturing Co. Ltd
Following that, we have one of the largest semiconductor companies in the world, Taiwan Semiconductor (TSMC). Essentially, it manufactures and sells integrated circuits and semiconductors. It also offers customer service, account management, and engineering services. Moreover, TSMC also owns and operates the largest semiconductor design ecosystem globally, the Open Innovation Platform.
The company will be announcing its second-quarter earnings report later on Thursday. So, investors could be expecting a strong financial quarter as the company had a better-than-expected sales performance in June. TSMC said that its sales in June increased by 22.8% year-over-year. This is likely contributed by shipments of silicon for Apple’s next generation of iPhones. So, this all bodes well with the upcoming earnings report.
It is also noteworthy that TSMC claims that it has already begun construction at its Arizona chip factory site in June. This $12 billion project is the company’s first U.S. factory in two decades and will be one of the few production sites outside of Taiwan. The company’s stock may have been trading sideways this year. But TSM stock has still been up by over 80% over the past year. Hence, would it be wise to buy TSM stock ahead of its earnings report?
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International Business Machines Corporation
IBM is a multinational tech company that is headquartered in New York, with operations in over 170 countries. The company offers a range of semiconductor technologies, products, and services. This goes from product development and manufacturing, to supply chain, marketing, and sales. Some would say that IBM is a hub of innovation as it invests more than $6 billion a year in research and development, holding more patents than any other U.S. tech company.
Last week was an eventful week for the company. First, we saw plans of collaboration with Atos to build a new digital infrastructure for the Dutch Ministry of Defense. It hopes to capitalize on the expertise of both companies to construct new data centers, safeguard its IT system, and build a proprietary broadband mobile network. Ultimately, to help ensure classified government information remains protected.
Then, we also saw the company announcing plans to acquire BoxBoat Technologies, a premier hybrid cloud consulting firm. BoxBoat will extend IBM’s container strategy and implementation services portfolio to further advance IBM’s hybrid cloud strategy. IBM acknowledges that its clients require a cloud architecture that allows them to operate across a traditional IT environment, private cloud, and public cloud. So, this acquisition makes sense as BoxBoat is at the forefront of container services innovation. Given the exciting developments surrounding the company, would you consider investing in IBM stock?
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Intel Corporation
Summing up this list, we have the tech giant, Intel Corporation. Simply put, the company engages in designing and manufacturing products and technologies. For those unaware, it is still the world’s largest semiconductor chip manufacturer by revenue. Intel is also the developer of the x86 series of microprocessors, ones found in most personal computers (PCs).
In June, the company and Microsoft Corporation (NASDAQ: MSFT) further deepened their partnership to deliver a completely new computing experience with the upcoming Windows 11. This would involve more than three-fourths of Windows PCs powered by Intel processors. Users will be able to access their favorite mobile apps to PCs with Intel Bridge Technology. Also, there will be Windows Snap and Thunderbolt™ 4 for the best multi-monitor experience. All these matter as it ensures that the PC continues to offer the best experience for the broadest ecosystem of applications.
Intel is not resting on its laurels. At the 2021 International Supercomputing Conference, the company showcased how the company is extending its lead in high-performance computing (HPC) with a range of technology disclosures, partnerships, and customer adoptions. Also, it announced its new High-Performance Networking with Ethernet (HPN) solution. On top of the ease of use offered by the Ethernet, HPN also allows application performance that is comparable to InfiniBand at a lower cost. All things considered, would INTC stock be a top semiconductor stock to buy?
