The semiconductor sector involves companies that produce essential components for electronic devices. These include chips used in computers, smartphones, and various other technologies. In the stock market, semiconductor stocks represent these companies, offering a way for investors to tap into the tech industry’s backbone.
Investing in semiconductor stocks can be rewarding. The sector has seen strong demand due to the rise of digitalization and technological advancements. However, it’s also a volatile market. Supply chain disruptions and rapid technological changes can create challenges. Cyclical downturns can impact earnings, making timing and research crucial for investors.
Before buying semiconductor stocks, consider the company’s position in the market and its innovation pipeline. Evaluate how it manages supply chain risks and responds to industry shifts. Diversification within the sector or across other industries can help mitigate risks while tapping into the growth potential of this vital industry. Keeping this on top of mind, let’s look at two semiconductor stocks to check out in the stock market today.
Semiconductor Stocks To Watch Now
- Advanced Micro Devices Inc. (NASDAQ: AMD)
- Broadcom Inc. (NASDAQ: AVGO)
Advanced Micro Devices (AMD Stock)
To initiate, Advanced Micro Devices Inc. (AMD) is a global semiconductor company that designs and manufactures computer processors and related technologies for both consumer and professional markets. AMD’s product portfolio includes central processing units (CPUs), graphics processing units (GPUs), and server processors, which are used in personal computers, gaming consoles, and data centers.
Today, Advanced Micro Devices announced its agreement to acquire ZT Systems, a leading provider of AI infrastructure. This acquisition aims to enhance AMD’s capabilities in AI systems for data centers. The transaction is valued at $4.9 billion, including a contingent payment of up to $400 million. AMD expects the deal to boost earnings on a non-GAAP basis by the end of 2025.
Looking at the last month of trading, shares of AMD stock have dropped modestly by 0.90%. Meanwhile, during Monday morning’s trading session, Advanced Micro Devices stock is trading higher off the open by 1.19%, currently trading at $150.34 a share.
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Broadcom (AVGO Stock)
Next, Broadcom Inc. (AVGO) is a diversified global technology company that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. Broadcom’s products serve various markets, including data centers, networking, broadband, wireless, and industrial sectors.
This month, Broadcom announced the launch of its Catalyst initiative, strengthening support for Symantec and Carbon Black customers. The initiative empowers elite partners to lead go-to-market strategies and customer relationships for these security brands. Catalyst partners are expected to drive significant profit growth with Broadcom’s support and resources. Broadcom will continue providing product management and advanced customer support to ensure success for both partners and customers.
In the last month of trading action, shares of AVGO stock have advanced by 2.33%. Moreover, on Monday morning, Broadcom stock is trading red off the open by 2.90%, at $160.90 a share.
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