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  • Best Semiconductor Stocks to Buy Right Now

    Best Semiconductor Stocks to Buy Right Now

    In the bearish market conditions that brought stocks from all backgrounds to the ground, the tech sector had fallen quite significantly.

    With serious macroeconomic headwinds impacting the industry, and supply chain complications persisting in what seems indefinite, investors seem hesitant to take long positions.

    The semiconductor industry too has taken its fair share of a beating amid these uncertain circumstances.

    However, with the long-term promise this sector offers, we believe the mass selloff brings a unique opportunity for those with their sights set far to invest in the best semiconductors stocks.

    As the world continues its transition to the digital realm, the hardware to power this rising phenomenon grows ever more critical.

    Semiconductor chips essentially act as the core unit of thousands of computing devices that continue to play an important role in all areas of life.

    Therefore, in light of this, we share our perspective on some of the most promising semiconductor stocks you could buy right now.

    What are Semiconductor Stocks?

    Semiconductor stocks are shares of companies that are engaged in the design, manufacturing, and distribution of semiconductors, which are electronic components used in a wide range of devices and technologies.

    Semiconductors serve as the foundation for various electronic devices, including computers, smartphones, televisions, and automotive systems.

    Best semiconductor stocks are involved in various aspects of the semiconductor industry, such as designing and producing microchips, integrated circuits, and other electronic components.

    They play a crucial role in advancing technology and enabling the development of innovative products across multiple industries.

    The demand for semiconductor products is driven by factors such as consumer electronics, cloud computing, artificial intelligence, the Internet of Things (IoT), and automotive advancements.

    As a result, the performance and growth potential of the best semiconductor stocks are often influenced by trends and developments within these sectors.

    Investing in the best semiconductor stocks can provide exposure to the fast-paced and rapidly evolving technology industry.

    However, it is important to note that the semiconductor sector can be volatile due to factors like global economic conditions, industry competition, technological advancements, and supply chain disruptions.

    Investors interested in the best semiconductor stocks should conduct thorough research, consider market trends, and assess the financial health and growth prospects of individual companies before making investment decisions.

    Who is the Biggest Semiconductor Maker?

    Taiwan Semiconductor Manufacturing Company Limited (TSMC) is widely regarded as the largest semiconductor manufacturer in the world.

    TSMC, headquartered in Taiwan, specializes in the fabrication of advanced semiconductor chips and is a key player in the global semiconductor industry.

    The company provides manufacturing services to a wide range of customers, including fabless semiconductor companies and integrated device manufacturers (IDMs).

    TSMC’s cutting-edge manufacturing processes and technological capabilities have made it a dominant force in the semiconductor market.

    Are Semiconductor Stocks Good to Trade or Invest in?

    Investing or trading in the best semiconductor stocks can be attractive for several reasons, but it’s important to note that any investment carries risks and individual research and analysis are essential before making investment decisions.

    Here are a few factors to consider when evaluating the best semiconductor stocks:

    • Growth Potential

      The semiconductor industry is known for its potential for significant growth.

      Semiconductor chips are essential components in various technologies, including smartphones, computers, automobiles, and emerging technologies like artificial intelligence and the Internet of Things (IoT).

      The increasing demand for these products can drive the growth of semiconductor companies.

    • Technological Advancements

      The semiconductor industry is highly innovative and constantly evolving.

      Companies that can stay ahead of technological trends and develop cutting-edge products have the potential to generate substantial returns.

      Investing in well-established semiconductor companies with a strong track record of innovation and research and development can be beneficial.

    • Cyclical Nature

      The semiconductor industry is cyclical and can experience periods of both growth and contraction.

      Economic factors, global demand for electronic devices, and supply chain dynamics can impact the performance of top semiconductor stocks.

      Investors should be aware of these fluctuations and consider the timing of their investments.

    • Competitive Landscape

      The semiconductor industry is competitive, with companies vying for market share and technological advancements.

      Understanding the competitive landscape and assessing a company’s competitive advantage is crucial.Competitive Landscape

      Companies with strong market positions, proprietary technology, and strategic partnerships may have an edge over their competitors.

    • Risks

      Investing in top semiconductor stocks carries risks.

      Factors such as global economic conditions, geopolitical tensions, regulatory changes, and supply chain disruptions can impact the performance of top semiconductor stocks.

      Additionally, technological shifts, changing consumer preferences, and intense competition can also pose challenges.

    Investing in Microchip Stocks

    Best chip companies to invest in can be an appealing option for investors looking to gain exposure to the growing semiconductor industry.

    Investing in Microchip Stocks

    Microchips, or integrated circuits, are crucial components used in a wide range of electronic devices, from smartphones and computers to automobiles and industrial equipment.

    Here are some key points to consider when evaluating the best chip companies to invest in:

    • Growing Demand

      The demand for microchips is expected to continue growing as technology advances and new applications emerge.

      Factors such as the proliferation of smartphones, the Internet of Things (IoT), artificial intelligence, and autonomous vehicles are driving the need for more sophisticated and powerful microchips.

      This sustained demand can present great opportunities for investors considering the best chip companies to invest in.

    • Industry Leaders

      It is important to research and identify the industry leaders in microchip manufacturing.

      Companies like Intel, NVIDIA, Advanced Micro Devices (AMD), Taiwan Semiconductor Manufacturing Company (TSMC), and Samsung Electronics are well-known players in the microchip industry.

      These companies often have strong market positions, established customer relationships, and significant research and development capabilities.

    • Technological Advancements

      Technological advancements in microchip design and manufacturing can significantly impact a company’s competitiveness and growth prospects.

      Investors should assess a company’s ability to innovate and stay ahead of the curve.

      Factors such as smaller chip sizes, improved power efficiency, and new materials and architectures can drive the success of microchip stocks.

    • Supply Chain Dynamics

      Understanding the global supply chain for microchips is essential.

      Many companies outsource manufacturing to specialized foundries, such as TSMC, which have expertise in advanced chip fabrication.

      Disruptions in the supply chain, geopolitical tensions, or shifts in manufacturing trends can impact the performance of microchip stocks.

    • Risks

      Investing in microchip stocks carries certain risks. The industry is highly competitive, and companies need to adapt quickly to evolving market dynamics.

      Factors such as economic cycles, regulatory changes, intellectual property disputes, and technological shifts can affect the performance of microchip stocks.

    What Trends Drive Semiconductor Stocks?            

    Best semiconductor stocks are influenced by various trends that shape the demand and growth prospects of the industry. Two significant trends that currently drive semiconductor stocks are

    • Connectivity and Mobility

      The increasing demand for connectivity and mobility is a major driver for semiconductor stocks.

      The proliferation of smartphones, tablets, wearable devices, and the Internet of Things (IoT) has created a need for advanced semiconductor chips that enable seamless communication, data transfer, and wireless connectivity.

      The growth of 5G networks and the expansion of smart home and smart city technologies further fuel the demand for semiconductor components, such as wireless modems, sensors, and RF chips.

    • Computing Accelerators

      The demand for computing accelerators, including graphics processing units (GPUs), field-programmable gate arrays (FPGAs), and application-specific integrated circuits (ASICs), is another trend driving semiconductor stocks.

      These specialized chips are designed to handle complex computational tasks and accelerate the performance of artificial intelligence (AI), machine learning, and data analytics applications.

      As these technologies become more prevalent across industries, the demand for computing accelerators and the semiconductor companies that produce them is expected to grow.

    Best Microchip Stocks to Buy Right Now 

    • Micron Technology, Inc. (MU)
    • Intel Corporation (INTC)
    • Texas Instruments Inc. (TXN)
    • Marvell Technology, Inc. (MRVL)
    • NXP Semiconductors (NXPI)
    • KLA Corporation (KLAC)
    • Infineon Technologies (IFNNY)
    • Samsung Electronics (SSNLF)
    • Navitas Semiconductor Corp (NVTS)
    • Advanced Micro Devices (AMD)
    • ON Semiconductor Corporation (ON)
    • ASE Technology Holding (ASX)
    • Lattice Semiconductor Corporation (LSCC)
    • NVIDIA Corporation (NVDA)
    • Taiwan Semiconductor Manufacturing (TSM)
    • Broadcom (AVGO)
    • ASML Holding (ASML)
    • Qualcomm (QCOM)
    • Applied Materials (AMAT)

    NVIDIA (NASDAQ: NVDA)

    Market Cap: $687 billion

    NVIDIA is a top semiconductor designer that initially focused on the video game industry.

    Over time, it has expanded its reach and is now known for its cutting-edge graphics processing units (GPUs) and artificial intelligence (AI) technologies.

    NVIDIA’s products are utilized in gaming, data centers, autonomous vehicles, and other high-performance computing applications.

    Taiwan Semiconductor Manufacturing (NYSE: TSM)

    Market Cap: $429 billion

    Taiwan Semiconductor Manufacturing (TSMC) is the largest contract chip manufacturer globally.

    The company specializes in manufacturing semiconductors for various clients, including fabless semiconductor companies and integrated device manufacturers.

    TSMC is known for its advanced manufacturing processes and plays a vital role in the supply chain of the semiconductor industry.

    Broadcom (NASDAQ: AVGO)

    Market Cap: $256 billion

    Broadcom is a significant player in the semiconductor industry, offering a range of chip designs for various applications.

    The company’s product portfolio spans multiple sectors, including networking equipment, data centers, broadband, wireless communications, and smartphones. Broadcom’s diverse offerings and expertise make it a key player in the market.

    ASML Holding (NASDAQ: ASML)

    Market Cap: $250 billion

    ASML Holding is the largest chip fab equipment company in terms of market capitalization.

    It specializes in the development and production of advanced lithography systems used in semiconductor manufacturing processes.

    ASML’s most notable technology is extreme ultraviolet (EUV) lithography, which enables the production of smaller, more efficient chips.

    Advanced Micro Devices (NASDAQ: AMD)

    Market Cap: $132 billion

    Advanced Micro Devices (AMD) is a semiconductor company that has gained market share in the PC and data center spaces.

    It designs and produces processors, graphics cards, and other semiconductor solutions.

    AMD’s products are known for their competitive performance and value, providing an alternative to its main competitor, Intel.

    QUALCOMM (NASDAQ: QCOM)

    Market Cap: $126 billion

    Qualcomm is the world’s largest mobile chip designer, primarily known for its development of smartphone processors and wireless technologies.

    In addition to its dominance in mobile, Qualcomm is expanding its presence in emerging areas such as 5G connectivity, Internet of Things (IoT), and automotive applications.

    Applied Materials (NASDAQ: AMAT)

    Market Cap: $95.7 billion

    Applied Materials is a leading developer of chip fabrication (fab) equipment, offering a wide range of machines necessary for semiconductor manufacturing processes.

    The company’s equipment is utilized in various stages of chip production, including deposition, etching, and inspection.

    Applied Materials has a comprehensive portfolio of solutions and plays a crucial role in enabling semiconductor production.

    Undervalued Semiconductor Stocks

    Identifying undervalued semiconductor stocks with sustainable revenue growth, above-average profit margins, attractive returns on invested capital, and a strong balance sheet requires thorough research and analysis.

    These are the most undervalued semiconductor stocks at the moment.

    • Skyworks Solutions (SWKS)
    • NXP Semiconductors (NXPI)
    • Microchip Technology (MCHP)

    Skyworks Solutions (SWKS)

    At a current stock price of $109.57, Skyworks Solutions stands as a prominent player in the field of radio frequency components, catering to renowned smartphone manufacturers and electronics companies.

    While the industry presents a highly competitive environment, Skyworks Solutions is poised for success in the foreseeable future.

    The company’s prospects are bolstered by the growing emphasis on 5G devices within the handset industry.

    As the demand for 5G devices surges, we anticipate a corresponding need for increased radio frequency dollar content per phone, a niche in which Skyworks Solutions excels.

    With its strong market positioning and focus on evolving technologies, Skyworks Solutions is well-positioned to capitalize on the expanding opportunities in the mobile communications sector.

    NXP Semiconductors (NXPI)

    NXP Semiconductors emerges as a formidable player in the semiconductor realm, particularly in the automotive market.

    As one of the largest suppliers in this sector, NXP wields significant influence in the analog and mixed-signal chip markets.

    The company’s resilient position in the automotive, industrial, mobile, and communications infrastructure sectors stems from a potent combination of switching costs and intangible assets.

    These competitive advantages provide us with the confidence that NXP will generate substantial returns above its cost of capital over the next decade.

    A momentous merger between Freescale and the former NXP in 2015 catapulted the company into a dominant force in the realm of automotive semiconductors, with this segment contributing approximately 50% of NXP’s total revenue.

    Positioned at the forefront of technological advancements, NXP stands to benefit from the rising wave of safer, greener, and smarter cars in the years ahead.

    Its prowess in automotive semiconductors, especially in microcontrollers that serve as the intelligent cores of various electronic functions within vehicles, places NXP among the market leaders in this domain.

    Our optimism is further fueled by NXP’s commitment to developing cutting-edge products for active safety systems.

    NXP Semiconductors’ stock price of $195.75 not only reflects its current standing but also signifies the immense potential it holds for investors.

    With a solid foundation, a focus on innovation, and a firm grasp on emerging automotive trends, NXP is positioned to drive growth, fuel advancements, and seize opportunities in the semiconductor landscape.

    Microchip Technology (MCHP)

    With a stock price of $85.37, Microchip Technology takes center stage as a leading supplier of microcontrollers (MCUs) – the brilliant semiconductors that power an extensive range of everyday electronic devices.

    From the humble garage door opener to electric shavers, and even household appliances like dishwashers, Microchip’s MCUs serve as the intelligent brains behind these indispensable gadgets.

    What sets Microchip apart is not only its exceptional performance in the chip industry but also its remarkable ability to generate free cash flow, regardless of the prevailing economic conditions.

    We consider Microchip to be among the best-run firms within the semiconductor space, delivering consistent results and demonstrating resilience in any market environment.

    The beauty of MCUs and analog chips lies in their highly desirable attributes. Unlike their counterparts dependent on cutting-edge designs, both MCU and analog chips require relatively low capital investments.

    Furthermore, their selection is primarily driven by performance rather than price, as the cost of these chips represents only a fraction of the overall product expenses.

    This characteristic fosters customer loyalty, as switching to a competing MCU would entail a complete redesign of the entire end product.

    As a result, MCU and analog firms can maintain robust profit margins and achieve impressive returns on invested capital.

    Microchip’s stronghold in the MCU and analog chip businesses, coupled with their ability to sustain high margins, positions them as a standout player in the industry.

    Their focus on delivering superior performance and long product lifecycles, combined with the loyalty of their customer base, ensures their continued success.

    Microchip Technology is not just a reliable investment option; it represents a strategic opportunity to capitalize on the steady growth and profitability of the chip market.

    Best Online Brokers for Semiconductor Stocks

    Choosing an online broker for trading semiconductor stocks involves considering factors such as trading fees, platform features, research tools, customer service, and user experience.

    Here are some popular online brokers known for their comprehensive services:

    Best Online Brokers for Semiconductor Stocks

    • TD Ameritrade

      Known for its powerful trading platform Thinkorswim, TD Ameritrade offers a wide range of research tools, educational resources, and competitive trading fees.

      It provides access to a diverse selection of semiconductor stocks and offers a user-friendly trading experience.

    • Fidelity Investments

      Fidelity is recognized for its extensive research offerings and robust trading platform.

      It provides access to a broad range of semiconductor stocks, offers competitive commission fees, and provides a user-friendly interface.

    • Charles Schwab

      Charles Schwab offers a comprehensive suite of tools and resources for investors.

      It provides access to semiconductor stocks, offers low trading fees, and has a user-friendly trading platform.

      The company also offers a range of educational resources for beginners.

    • ETRADE

      ETRADE offers a variety of investment options, including semiconductor stocks.

      It provides a user-friendly platform, access to research and analysis tools, and competitive trading fees.

      Additionally, E*TRADE offers educational resources and a range of account types to cater to different investor needs.

    • Interactive Brokers

      Known for its advanced trading platform, Interactive Brokers offers a wide range of investment options, including semiconductor stocks.

      It provides access to global markets, competitive pricing, and powerful trading tools.

      However, it caters more to experienced traders and may have a steeper learning curve for beginners.

    Features to Look for in Semiconductor Stock

    When considering the best semiconductor stocks, there are several key features and factors to consider. Here are some important features to look for:

    • Technological Leadership

      Look for semiconductor companies that have a strong track record of technological innovation and leadership within their respective markets.

      Companies that develop cutting-edge products and technologies tend to have a competitive advantage and are better positioned for long-term growth.

    • Market Demand and Growth Potential

      Assess the demand drivers and growth potential for the semiconductor products offered by the company.

      Consider factors such as the growth of emerging technologies (e.g., 5G, AI, IoT), industry trends, and the company’s ability to capture market share in growing sectors.

    • Diversified Customer Base

      A semiconductor company with a diversified customer base is often more resilient to fluctuations in demand from specific customers or industries.

      Look for companies that have a wide range of customers across various sectors to reduce reliance on a single client or market.

    • Financial Performance

      Evaluate the company’s financial performance, including revenue growth, profitability, and cash flow generation.

      Look for consistent and sustainable revenue growth, healthy profit margins, and a strong balance sheet.

      A financially stable company is better equipped to navigate industry challenges and invest in future growth.

    • Research and Development (R&D) Investments

      Assess the company’s commitment to research and development.

      Semiconductor companies that allocate a significant portion of their revenue to R&D tend to stay ahead in technology and maintain a competitive edge.

      Strong R&D capabilities contribute to the development of innovative products and drive future growth.

    • Supply Chain Management

      Consider the company’s ability to manage its supply chain effectively.Supply Chain Management

      Semiconductor companies with strong relationships with suppliers and efficient supply chain operations are better positioned to meet customer demands and mitigate supply chain disruptions.

    Conclusion

    In conclusion, the current market conditions and trends suggest that semiconductor stocks offer promising investment opportunities.

    The semiconductor industry is driven by the increasing demand for connectivity, mobility, and computing accelerators, making these stocks well-positioned for future growth.

    However, it is important for investors to conduct thorough research, consider their investment goals and risk tolerance, and diversify their portfolios.

    While the semiconductor sector presents opportunities, it is crucial to monitor market conditions, stay updated on technological advancements, and seek professional advice when making investment decisions.

    By doing so, investors can make informed choices and potentially benefit from the growth and potential returns offered by the best semiconductor stocks available in the market today.

    Frequently Asked Questions

    Are Semiconductors a Good Investment?

    Semiconductors have been considered a good investment by many investors due to their significant role in technology and various industries.

    Semiconductors are essential components in electronic devices, computers, communication systems, automotive technology, and more.

    With the increasing demand for advanced technologies such as artificial intelligence, the Internet of Things (IoT), and 5G, the semiconductor industry is expected to continue growing.

    When Will Semiconductor Stocks Go Up in Price?

    Predicting the exact timing for semiconductor stocks to go up in price is challenging and can be influenced by various factors. Stock prices are determined by a combination of market dynamics, company-specific factors, industry trends, and broader economic conditions.

  • Advanced Micro Devices Inc. (AMD) stock Rises After Hours on Impressive Q4 & Full year 2021 Results

    On February 01, Advanced Micro Devices Inc. (AMD) declared its financial results for the quarter and the full year ended December 31, 2021. Consequently, the stock made some good gain in the after-hours session on Tuesday.

    During the regular session, the stock varied between a high of $117.26 and a low of $112.73. AMD closed the session at $116.78 with a gain of 2.21% at a heavy volume of 122.47M shares. Following the announcement, the stock added a further 10.46% at an active after-hours volume of 13.45M. Hence, AMD was trading at $129.00 per share in the after-hours session on Tuesday.

    Founded in 1969, Advanced Micro Devices Inc. is a semiconductor company. Currently, the company has a market capitalization of $137.97B with 1.21B outstanding shares. AMD has lost 18.85% year to date while it gained 31.42% last year.

    AMD’s Q4 and Full-year 2021 Financials

    On Tuesday, AMD reported revenue of $4.8B and $16.4B for Q4 and full-year 2021, respectively. Thus, the Q4 revenue increased by 49% YOY and the full year’s revenue increased by 68% YOY.

    Moreover, the company had a non-GAAP net income of $1.1B in Q4 2021, against $636M in the year-ago quarter. Resultantly, the non-GAAP net income per diluted share was $0.92 and $0.52 in Q4 of 2021 and 2020, respectively.

    For the full year 2021, the company had a non-GAAP net income of $3.4B, against $1.6B in the previous year. Therefore, the non-GAAP net income per diluted share was $2.79 and $1.29 in 2021 and 2020, respectively.

    Additionally, the company ended the year with cash, cash equivalents, and short-term investments of $3.6 B.

    Future Outlook

    The expected revenue for Q1 2022 is $5.0B (+/- $100M), an approximate growth of 45% YOY.

    Furthermore, the full year 2022 expected revenue is nearly $21.5B with 31% growth YOY.

    In addition, the company expects the growth in both Q1 and full-year revenue to be driven by growth in all sectors.

    AMD’s Recent Developments

    On January 19, the company announced the release of the new AMD Radeon PRO W6000 Series graphics lineup for desktop and mobile workstations. The new graphics card delivers quality performance enmeshed with stability and reliability. Further, the card is not only usable by professional users, CAD designers, and engineers but also office knowledge workers.

    Conclusion

    On Tuesday, the company reported earnings that topped the analyst’s expectations. The anticipation before the release had already made the stock trade heavily in the regular session. But the impressive results caused it to soar high in the after-hours session.

  • AMD stock is rising in the current trading session; here’s why

    Shares of Advanced Micro Devices Inc. (NASDAQ: AMD) were up 4.30% at $81.93 in the current trading as of this writing. AMD stock closed the last session at $78.55. AMD stock price was fluctuating between $77.935 and $80.13. The number of shares exchanged was 12.06 million, less than the company’s 50-day daily volume of 40.46 million and lower than its Year to date volume of 43.63 million. In the past 12 months, the AMD stock has advanced 43.00%, and in the last one week, the stock has moved down -4.44%. For the last six months, the stock has lost a total of -6.81%, and over the last three months, the stock has decreased by -17.62%. The stock has returned -14.35% so far this year. Additionally, the stock is trading at a price-to-earnings ratio of 38.49.

    About AMD stock

    Advanced Micro Devices is a global semiconductor company. The company works on two ends of tech spectrum – Graphics and Computers. Both segments revolve around enterprise, embedded and Semi-custom. The product offerings include x86 microprocessors, integrated graphics, chipsets, discrete graphics processing unit, data center and professional GPUs. AMD stock also has development services like embedded and server processors, SoC products and tech for gaming setups and platforms. The brand names for its microprocessors, embedded processor solutions and discrete GPUs are AMD Ryzen, AMD Ryzen PRO, Threadripper, AMD A-series, AMD Athlon, AMD Athlon PRO, AMD Athlon PRO A-series, AMD EPYC, AMD Opteron, AMD Geode, AMD R-series, AMD G-series, AMD Radeon, AMD Radeon PRO and AMD FirePro.

    Boom in the Ryzen 5000 sale performance

    AMD’s Central Processing Unit market has seen boom in the month of March.  According to latest Steam Hardware Survey, AMD had chalked up 28.97% of the market control. The first three months of 2021 have been good for AMD as this market share increased specifically 0.46 percentage points increased in March.

    Aggressively rivaling the Chipzilla

    Due to the global chip shortages, AMD’s market growth was handicapped in last three months of 2020; especially with Intel chipping away up to 75% market share of CPUs in December. However the sales-profit of chipzilla were lower relatively in the market as Intel had reduced the prices of its processors to increase its shipping. AMD has seized the opportunity and shipped 1 million units of Ryzen 5000 processors in the last two months of 2020 according to Mercury Research. Furthermore, the supply of Ryzen 5000 is expected to be amped up in the second quarter of 2021 by 20%, as sourced by supply chain related people familiar with the matter.

    Intel has more market share but Ryzen performance is better

    The reviews about AMD processors made by demand side third party has come up to be better in performance than its Intel counterparts thus AMD sales are likely to see a positive response for Ryzen 5000. Furthermore, AMD has also dethroned Intel as CPU crown due to Ryzen 5000 series processor’s superior tech built. This is beneficial for AMD stock since it plans to aggressively target the PC processor market and seems to be gaining tailwind as the year progresses.

  • Three Best Semiconductor Stocks to Investment in the long-term

    Three Best Semiconductor Stocks to Investment in the long-term

    The semiconductor stocks are bullish as we see the digital world move one step ahead.

    The semiconductor market is going to get bigger in the next few years. During the pandemic, the semiconductor stocks performed extremely well last year. Consumer electronics sales are increasing and trends such as cloud computing and e-gaming have created massive opportunities for semiconductors and their equipment market.

    Analysts believe that due to the rising bullish trends in the semiconductor sector, the stocks will have another high year in 2021. Moreover, the growth and infrastructural development of the 5G system will pave way for cloud services.

    So, let’s have a look at the three best semiconductor stocks for long-term investment.

    Advanced Micro Devices (AMD)

    Advanced Micro Devices (AMD) is one of the most decorated and well-positioned semiconductor firms in the market. AMD has staged an amazing turnaround over the past five years, powered by new products and improved profitability.

    With the booming demand for semiconductors, AMD has been at the forefront of this profitable market. In Q4 2020, the company reported better-than-expected results surpassing Wall Street estimates. For the three months ended in Dec. 2020, AMD recorded sales of $3.24 billion, compared to estimates sales of $3.02 billion. While on the yearly basis, the sales were up by 53%. The massive spike in sales was driven by the strong demand for PC, gaming, and data center products.

    The company announced the portfolio of AMD Ryzen 5000 Series Mobile Processors. Whereas, on Oct. 8, AMD launched its next-generation Ryzen processors for desktop computers. The company describes its Ryzen 5000 series CPU as the “fastest gaming CPUs in the world.”

    Heading forward, the company expects its revenue of around $3.2 billion for the current, which would be 79% higher than last year. On the other side, Wall Street anticipates AMD to record sales of $2.73 billion.

    QUALCOMM (QCOM)

    QUALCOMM (QCOM) is another prominent stock in the semiconductor market with much potential in the long-term. The company continues to lead the way as 5G networks blanket cities far faster than expected. For most of 2020, QCOM was on the bullish side.

    In the recent Q1 2021 outcomes, the semiconductor firm produced mixed results. The company reported earnings of $2.17 per share compared to an estimated $2.10. While it lagged the revenues estimates by a little margin, with net revenue of around $8.23 billion. The overall sales grew 63% year-over-year while earnings soared over 119%.

    The news that may be hunting QCOM investors is the partnership deal of the company with Apple. There have been reports that the iPhone maker could cut out Qualcomm and make its own iPhone modem chips.

    NXP Semiconductors (NXPI)

    The semiconductor manufacturer, NXP Semiconductors (NXPI) produces high-performance, mixed-signal chips for the auto, mobile payment, and other end markets. The company is well-positioned to benefit from the market share in both the mobile payment and auto markets in 2021.

    NXP will be a bigger part of the electric and autonomous vehicle technology and would also bring long-term investing opportunities. In the recent quarterly update, the company reported better-than-expected Q4 2020 results. The earnings per share were $2.68, surpassing the Zacks Consensus Estimate of $2.11. This represents an 11.2% jump from the last year and 57.6% sequentially. While the net sales were $2.51 million, 1.7% higher than the estimates.

    As we head forward, analyst Angelo Zino anticipates NPX’s revenue growth of 12% and EPS growth of 30.9% during 2021. So, NXP Semiconductors (NXPI) is one of the long-term options for investors.

  • Early Morning Vibes: 3 Upgraded & 4 Pre Market Hot Stocks Inside

    Early Morning Vibes: 3 Upgraded & 4 Pre Market Hot Stocks Inside

    On December 10, the American stock indexes finished trading in different directions. The S&P 500 Index dropped 0.13% to 3668 points, the Dow Jones lost 0.23% and the NASDAQ rose 0.54%. Investors could not determine the direction of movement and took a wait and see attitude. Note that small-cap stocks showed more pronounced positive dynamics: the Russel 2000 index rose 1.08%. The industrial sector was an outsider, shedding 0.93%. 

    Corporate updates 

    Starbucks (SBUX: 5%) management presented a positive outlook for the company over the next few years.

    Snap (SNAP: + 8.1%) and Twitter (TWTR: + 8.4%) have announced a service integration partnership. Tweets can be shared on the Snapchat platform.

    Adobe’s quarterly results (ADBE: -1.4%) were better than expected, but its stock corrected.

    Today, global stock exchanges are showing mostly negative dynamics. The focus of attention is the decision of the FDA expert panel, which recommended approval of the coronavirus vaccine developed by Pfizer and BioNTech. However, no official permission was issued for the use of this drug, although market participants were counting on this. The market now assumes that a positive decision will be made this weekend, and then within 24 hours the first 6.4 million doses will be shipped to different states. Waiting for a vaccine approval within three months was the main driver of market growth.

    Lack of further progress in negotiations on the US economic aid package, persisting tensions with China and COVID-19 incidence statistics are factors that reduce risk appetite in the short term. The alarming signal yesterday was the publication of data on applications for unemployment benefits. Their number unexpectedly increased to 853 thousand in a week, while the forecast was 725 thousand. Macro statistics were ignored by the market, however, in our opinion, it serves as a harbinger of a deterioration in the state of the economy in early 2021 due to quarantine restrictions reintroduced by some states.

    Economic Update

    The University of Michigan Preliminary Expectations and Consumer Sentiment Index for December will be released today. The consensus assumes an increase in the first indicator from 70.5 to 71.0, while the second decreases from 76.9 to 76.5 points. The Expectations Index should be boosted by consumer hopes for mass vaccinations. Before the pandemic, the sentiment index was at the level of 99-100, the pressure on it continues to be the absence of a new package of economic assistance measures and stabilization of the epidemiological situation.

    Top Upgrades & Downgrades

    Morgan Stanley turned bullish on Diamondback Energy Inc. (FANG), upgrading the stock to “Overweight” and assigning a $65.0 price target.

    CommScope Holding Company Inc. (COMM) has won the favor of JP Morgan’s equity research team. The firm upgraded the shares from Neutral to Overweight and moved their price target to $18.0.

    Cognizant Technology Solutions Corporation (CTSH) received an upgrade from analysts at JP Morgan, who also set their one-year price target on the stock to $93.0. They changed their rating on CTSH to Overweight from Neutral in a recently issued research note.

    Earlier Friday JP Morgan reduced its rating on Juniper Networks Inc. (JNPR) stock to Neutral from Overweight and assigned the price target to $25.0.

    JP Morgan analysts reduced their investment ratings, saying in research reports covered by the media that its rating for Corning Incorporated (GLW) has been changed to Neutral from Overweight and the new price target is set at $39.0.

    Today Top Movers

    vTv Therapeutics Inc (VTVT) share price soared 184.47% at $6.23 in today’s pre-market session after the report that in compliance with the terms of the letter arrangement between the Firm and the Investor dated December 23, 2019, the company exercised the right to allow MacAndrews & Forbes Group LLC buy 625,000 shares of the Company’s Class A common stock at a per share price of $1.60.

    In trading session of premarket today, BioNTech SE (BNTX) share price went up 0.07% at $29.63 after the company and Pfizer reported the receipt FDA advisory committee vote in supporting potential first emergency use authorization for vaccine to combat COVID-19 in the U.S.

    Sonoma Pharmaceuticals Inc (SNOA) showing bullish trend in early morning on Friday, increasing 33.44% of its share price at $8.18 following an announcement of agreement with Crown Laboratories, Inc., to Launch Microcyn technology-based anti-Itch over-the-counter products.

    Zedge Inc (ZDGE) is going up 21.48% in premarket session on Friday after reporting first fiscal quarter revenue growth of 85% and record overall quarterly financial results.

    Latest Insider Activity

    Advanced Micro Devices Inc. (AMD) President & CEO Su Lisa T announced the sale of shares taking place on Dec 08 at $92.89 for some 150,000 shares. The total came to more than $13.93 million.

    Twitter Inc. (TWTR) Chief Financial Officer SEGAL NED D. sold on Dec 08 a total 634,970 shares at $47.93 on average. The insider’s sale generated proceeds of almost $0.34 million.

    Regulus Therapeutics Inc. (RGLS) 10% Owner Sonsini Peter W. declared the purchase of shares taking place on Dec 04 at $0.62 for some 4,398,602 shares. The transaction amount was around $2.74 million.

    Boxlight Corporation (BOXL) CHIEF EXECUTIVE OFFICER Pope Michael Ross bought on Dec 09 a total 287,942 shares at $1.65 on average. The purchase cost the insider an estimated $66,000.

    Earnings To Watch

    Top US earnings releases scheduled for today include Construction Partners Inc. (NASDAQ:ROAD). It will announce its Sep 2020 financial results. The company is expected to report earnings of $0.3 per share from revenues of $241.5M in the three-month period.

    Analysts expect Johnson Outdoors Inc. (NASDAQ:JOUT) to report a net income (adjusted) of $0.8 per share, when the bank releases its quarterly results shortly. Revenue for the fiscal quarter ended Sep 2020 is predicted to come in at $125.44M.

  • Advanced Micro Devices (NASDAQ:AMD) Announces Acquisition Of Xilinx

    Advanced Micro Devices (NASDAQ:AMD) Announces Acquisition Of Xilinx

    Advanced Micro Devices, Inc. (NASDAQ:AMD) announced today the plan to acquire chip peer Xilinx, Inc (NASDAQ: XLNX). AMD signed a $35 billion acquisition agreement with Xilinx in an all-stock transaction. This acquisition will make a high-performance computing company and AMD will be able to expand its product portfolio. AMD and Xilinx, Inc. both deal in complementary product portfolios and customers.

    The transaction is anticipated to increase AMD margins, EPS, and free cash flow production immediately and lead to industry-leading growth. Advanced Micro Devices is involved in the production of high-performance processor technologies, combining CPUs, GPUs, FPGAs, Adaptive SoCs, and deep software expertise to enable leadership computing platforms for cloud, edge, and end devices.

    As per the agreement, the shareholders of Xilinx will get a fixed exchange ratio of 1.7234 shares of AMD common stock for each share of Xilinx common stock they are owing at the closing of the transaction. Based on the exchange ratio, this represents approximately $143 per share of Xilinx common stock. AMD is anticipating to gain operational efficiencies of approximately $300 million within 18 months of closing the transaction.

    AMD has also announced the 2020 Third quarter financial results. AMD has reported a revenue of $2.80 billion, and a net income of $390 million. Semiconductors company recorded an operating income of $449 million and diluted earnings per share of $0.32. Its Gross Margin increased 44% and revenue was up 56% year-over-year.

    Advanced Micro Devices, Inc. (NASDAQ: AMD) shares were trading up 0.33% at $82.33 during the trading session of Monday. Its shares trading down -4.23% during the pre-market trading session of Tuesday. AMD market cap has remained high, hitting $93.55 billion at the time of writing.  While the Shares of Xilinx (NASDAQ: XLNX)  up 10.00% during the pre-market trading session of Tuesday. It has a total market capitalization of $27.08 billion.

    AMD strives to become the high-performance computing leader and aimed to become the partner of choice for the largest technology companies in the world. This acquisition will create value for shareholders of both the semiconductors companies. The team of Xilinx is considered to be the strongest team in the industry.

     

  • Here Are 2 Stocks You Should Keep Your Eyes On AMD and INTC

    Here Are 2 Stocks You Should Keep Your Eyes On AMD and INTC

    The semiconductor industry is considered to be the most important industry and most nations are striving to remain competitive at least some aspect of this critical industry. Advanced semi-conductors create better products that lead to a greater demand in this industry. Currently, economic uncertainty is prevailing in almost every sector of the world because of the ongoing viral pandemic. Here are two stocks in the semiconductor industry that investors should consider buying are Advanced Micro Devices, Inc. (NASDAQ: AMD) and Intel Corporation (NASDAQ: INTC). Both these semiconductor companies are facing new challenges but their competitive edge makes both stocks worth buying.

    Advanced Micro Devices, Inc. (NASDAQ: AMD)

    Advanced Micro Devices, Inc. (NASDAQ: AMD) share has experienced unusual options activity on Tuesday as the company stock price moved up 2.88% during the trading session of Tuesday. Investors will be expecting a good performance from AMD as it heads towards its next earnings release. AMD is anticipating to report earnings of $0.36 per share, which would represent year-over-year growth of 100%.

    Advanced Micro Devices has recently launched the first AMD RyzenTM mobile processors and the latest AMD AthlonTM mobile processors for Chromebook platforms. These processors have 178% faster web browsing capability as compared to the previous generation. These two processors were designed in partnership with Google.

    The AMD Ryzen and Athlon 3000 C-Series Mobile Processor lineup introduces the first-ever ‘Zen’ architecture-powered Chromebooks of its kind with systems from Acer, ASUS, HP, and Lenovo launching in Q4 2020. AMD Ryzen 3000 C-Series Mobile Processor has the ability to perform 212% better compared to the previous generation of AMD Chromebooks. It offers 104% faster office productivity performance compared to the previous generation AMD Chromebooks.

    Advanced Micro Devices now holds nearly 20% of the PC Chip market and nearly 6% of the server chip market. This company is using third-party Taiwan Semiconductor Manufacturing for its chips. It has been disclosed that its EPYC server chips and Ryzen PC Chips are currently manufactured on TSMC’s 7nm process.

    This company share has gained +2.29 on Tuesday at $81.77. Its share price went from a low point around $27.43 to briefly over $94.28 in the past 52-weeks of trading. AMD stock has moved up 198.10% from its 52-weeks low and moved down -13.27% from its 52-weeks high. Looking at its profitability, it has a return on assets, equity, and investment of 10.30%, 21.50%, and 12.40%, respectively. AMD market capitalization has remained high, hitting $93.25 billion at the time of writing.

    Intel Corporation (NASDAQ: INTC)

    If we look at Intel Corporation (NASDAQ: INTC) has launched the 11th Gen Intel® Core™ processors, Intel Atom® x6000E series, and Intel® Pentium® and Celeron® N and J series which has different internet of things capabilities. Intel’s main competitive advantage is that it has worked closely with its customers. INTC enabled its customers and developers to work faster and deliver more powerful results with enhanced, containerized packages to enable sensing, vision, automation, and other transformative edge applications.

    On the other hand, the company has entered into a strategic collaboration with Lightbits labs to solve the problems of today’s data center operators. Intel Corporation has also announced that it is scheduled to host its second of two Intel® Partner Connect events on October 20, 2020. It aimed to build a trusted foundation for computing in a data-centric world.

    This company shares headed falling 0.47% after its lost -0.24 on Tuesday. In the past 52-weeks of trading, this company’s stock has fluctuated between the low range of $43.63 and a high range of $69.29. It has moved up 17.33% from its 52-weeks low and moved down -26.12% from its 52-weeks high. Focusing on its liquidity, it has a current ratio of 2.00. This company’s market capitalization has remained high, hitting $214.13 billion at the time of writing.  Intel Corporation is still making a lot of money and has been growing during the pandemic.