The semiconductor sector is integral to the modern digital economy, driving advancements in computing, telecommunications, healthcare, and automotive industries, among others. Semiconductors, or chips, are the brains behind electronic devices, powering everything from smartphones to advanced medical equipment. This sector is characterized by rapid innovation and intense competition. Companies continually push the boundaries of technology. As global demand for electronic devices grows, the semiconductor industry’s importance and influence are expected to expand.
Investing in semiconductor stocks offers the potential for significant growth, given the sector’s critical role in technological progress. Companies range from manufacturers of the chips themselves to equipment suppliers and IP licensors, providing a broad spectrum of investment opportunities. However, the sector is known for its cyclicity, with periods of high demand followed by oversupply, affecting stock performance. Furthermore, semiconductor manufacturing requires substantial capital investment and is subject to complex geopolitical factors, adding layers of risk.
For investors, semiconductor stocks can be a way to gain exposure to the forefront of technology and innovation. Diversification within the sector can help mitigate risks related to cyclical demand and supply chain vulnerabilities. Investors need to conduct thorough research, understanding the unique challenges and opportunities each company faces within the semiconductor landscape. That said, here are two semiconductor stocks to watch in the stock market this week.
Semiconductor Stocks To Watch Now
- Advanced Micro Devices Inc. (NASDAQ: AMD)
- Texas Instruments Incorporated (NASDAQ: TXN)
Advanced Micro Devices (AMD Stock)
Leading off. Advanced Micro Devices Inc. (AMD) is a global semiconductor company that designs and produces microprocessors for the computer and consumer electronics industries. In addition, AMD is popular for its contributions to the computing market. Particularly in CPUs and GPUs. The company competes in key technology sectors, including gaming consoles, servers, and personal computers.
Just this month, AMD announced its latest addition to its FPGA portfolio, the AMD Spartan™ UltraScale+™ family, designed for cost-sensitive edge applications. This new series stands out for its high I/O counts, energy efficiency, and advanced security features, targeting a variety of sectors including embedded vision, healthcare, industrial networking, robotics, and video applications.
Year-to-date, shares of AMD stock have increased by 43.86% so far. Meanwhile, during Monday morning’s trading session, Advanced Micro Devices stock opened lower by 3.55%, currently trading at $200.02 a share.
Texas Instruments (TXN Stock)
Second, Texas Instruments Incorporated (TXN) is a technology company that designs and manufactures semiconductors and various integrated circuits. Additionally, it supplies to electronics designers and manufacturers globally. Its products focus on a wide range of applications, from advanced automotive systems to consumer electronics and industrial solutions.
In late January, Texas Instrument reports its Q4 2023 financial results. Diving in, the company notched in Q4 2023 earnings of $1.49 per share, with revenue of $4.08 billion. This is versus Wall Street’s estimates for the quarter which were an EPS of $1.46 per share, with revenue estimates of $3.75 billion.
In 2024, Texas Instrument stock is up 2.22% year-to-date. While, during Monday’s early morning trading action, shares of TXN stock opened up 0.53, trading at $173.21 a share.
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