Top Semiconductor Stocks To Watch This Week
Semiconductor stocks have been one of the most resilient industries in the stock market this year. Despite most of the tech stocks facing significant setbacks at some point in time, many semiconductor stocks continue to push on. For instance, we saw Marvell Technology (NASDAQ: MRVL) showing a strong bullish momentum over the past month. In fact, the MRVL stock more than doubled its value over the past year. Its recent momentum is in light of the company’s recent strong financial results that reflect a strong demand for its products and services.
On top of that, some other semiconductor companies are also trading at new highs. The likes of ON Semiconductor (NASDAQ: ON) and NXP Semiconductors (NASDAQ: NXPI) continue to edge higher despite the broader stock market volatility. After all, the semiconductor chip shortage may well be a blessing in disguise for these companies. As demand continues to rise, semiconductor companies are also operating at maximum capacity. Naturally, this would lead to higher levels of growth compared to previous years. With all said and done, if you have done your research, you may be able to find some hidden gems out there. So, here is a list of some of the top semiconductor stocks in the stock market today.
Best Semiconductor Stocks To Watch This Week
- Silicon Motion Technology Corp. (NASDAQ: SIMO)
- Broadcom Inc (NASDAQ: AVGO)
- Alpha and Omega Semiconductor Ltd (NASDAQ: AOSL)
- Microchip Technology Inc (NASDAQ: MCHP)
Silicon Motion Technology
First, we will be looking at Silicon Motion. The company is a provider of negative-AND flash controllers for Solid State Drives (SSDs) and other solid-state storage devices. It mainly engages in the design, development, and sale of low-power semiconductor solutions. SIMO stock has climbed more than 25% just within the past week. So, let us see what recent developments are getting investors excited.
For starters, the company announced yesterday that its Board of Directors has authorized a new share repurchase program of up to $200 million. We also saw the company announcing recently that its annual dividend is now 43% higher than the previous one. These build on the company’s track record of returning excess capital to shareholders primarily through dividends and share repurchases.
Financially, Silicon Motion has also been firing on all cylinders. During its third quarter, it posted revenue of $254.2 million, doubling from the previous year’s quarter. Meanwhile, its GAAP net income increased to $55.4 million or $1.58 per diluted share. Safe to say, it has been a stellar year for the company thus far. The company also reaffirmed its fourth-quarter financial guidance recently. Given these considerations, would SIMO stock have more room to run?
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Broadcom
Another top semiconductor company right now would be Broadcom. Put simply, it designs, develops, and supplies a range of semiconductor and infrastructure software solutions. Its semiconductor solutions aim to manage the movement of data in data centers, telecom, enterprise, and embedded networking applications. Now, if you’re looking for bullish stocks in the semiconductor space right now, AVGO stock would be at the top of the list.
Yesterday, Broadcom announced its intent to acquire AppNeta Inc. For those unfamiliar, AppNeta is a leading SaaS-based network performance monitoring solution for the distributed enterprise. So, it provides IT teams with precise, end-to-end visibility into network performance from the end user’s point of view. By combining AppNeta’s solutions with Broadcom’s proven infrastructure capabilities, its customers will now have access to a single source of truth to support their cloud journey.
Furthermore, the company announced in November that it will be supporting Meta (NASDAQ: FB) and its ecosystem of partners on the transition to a leading-edge 25.6 Tbps networking fabric. It will now deploy the world’s highest bandwidth Ethernet switch chip, the Broadcom StrataXGS Tomahawk 4 switch series. All things considered, would AVGO stock be a top semiconductor stock to watch now?
Alpha and Omega Semiconductor
Alpha and Omega Semiconductor (AOS) is a designer, developer, and global supplier of power semiconductors. Its portfolio of products focuses on high-volume applications, including personal computers, flat-panel televisions, light-emitting diode (LED) lighting, smartphones, and many more. Impressively, AOSL stock has risen more than 120% since the start of the year.
Last week, the company announced the release of its 600V Low Ohmic and Fast Body Diode αMOS5™ Super Junction MOSFETs Family. This latest generation of high voltage MOSFET is designed to meet the high efficiency and high-density needs for applications such as Adapter, PC Power, Server, and Hyperscale Datacenters. Safe to say, AOS’s commitment to high-power SMPS applications is getting stronger by the day.
In addition, investors should also note that the company recently announced a transaction in regards to a sale of approximately 2.1% of equity interest in a joint venture in China to a third-party investor. AOS is reducing its ownership to below 50%. Thus, increasing the flexibility of the joint venture to raise capital to find its future expansions. Well, this could be in the best interest of all shareholders. With that in mind, would AOSL stock be worth watching now?
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Microchip Technology
Last but not least, we have Microchip Technology. In detail, the company engages in developing, manufacturing, and selling connected and secure embedded control solutions. Its easy-to-use development tools and comprehensive product portfolio enable customers to create optimal designs which reduce risk while lowering total system cost and time to market.
Late last month, Microchip introduced a new maXTouch-touchscreen controller for the automotive industry. As touch displays are becoming more popular in cars, manufacturers are looking for various formats to accommodate their interior design and emphasize their brand identity. So, the company’s new application will allow automotive designers to satisfy these needs.
The MXT1296M1T can reconfigure its driving and receiving touch channels to match the exact screen format. Hence, customers will be able to efficiently use the number of touch channels available. Besides that, customers can also save additional development and validation time by reusing a common PCB design to support different touch sensor aspect ratios. Given the company’s status as the number one touchscreen controller supplier in the industry, would MCHP stock be a viable investment now?
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