While investors await the Federal Reserve’s latest monetary policy call, semiconductor stocks are in focus in the stock market today. After all, the world is still undergoing a semiconductor chip shortage. By current industry estimates, the shortage could last well into 2022. This would be the case as semiconductors are essentially the brains behind most of the tech around us today. From our home appliances and smart cars to our handheld devices, these chips are present. Now, as semiconductor giants continue to ramp up their operations to meet rising demands, investors could be eyeing the industry.
Evidently, analysts over at Goldman Sachs (NYSE: GS) are now predicting greater demand and larger markets for the semiconductor industry. Earlier this week, the firm cited Taiwan Semiconductor (NYSE: TSM) as its top pick in the sector now. According to Goldman analysts, the company could gain up to 80% of the market share in the three-nanometer processor market by 2023. At the same time, Nvidia (NASDAQ: NVDA) recently released its latest set of software integrations for Windows 11. The likes of which would provide cutting-edge features for over a hundred of the latest video games via its graphics processing units.
Overall, the case for semiconductor stocks seems to be building even amidst the current shortages. For investors looking towards long-term investments during this volatile week in the stock market, semiconductors could be a viable play. With all that said, could these top semiconductor stocks be worth watching now?Best Semiconductor Stocks To Buy [Or Sell] This Week
- ASML Holding (NASDAQ: ASML)
- ON Semiconductor Corporation (NASDAQ: ON)
- Advanced Micro Devices Inc. (NASDAQ: AMD)
- Qualcomm Inc. (NASDAQ: QCOM)
ASML is a semiconductor company that manufactures complex lithography systems that are critical to the production of microchips. In fact, lithography systems are machines that are used to make said chips. The company’s products are used by all major chipmakers and our everyday electronics may not exist without ASML’s machines. The company also offers hardware, software, and services to mass produce patterns on silicon. ASML stock currently trades at $871.57 as of 2:35 p.m. ET and has more than doubled in valuation in the past year alone.
Last month, the company opened a new state-of-the-art R&D facility in Silicon Valley. It will house computational software and metrology and inspection combined to optimize the patterning process. The 212,573 square foot facility includes a Class 1000 cleanroom, lab space, and collaboration areas to advance ASML’s holistic lithography portfolio. “As chipmakers continue to shrink the patterns to make small and powerful chips, we continue to grow to address the escalating complexities that require ever-more sophisticated approaches,” said Jim Koonmen, executive vice president of Applications Business at ASML. Given this piece of news, will you consider investing in ASML stock right now?Source: TD Ameritrade TOS ON Semiconductor Corporation
ON Semiconductor, also known as onsemi, is a tech company with over 60 years of experience in the semiconductor industry. As a leading semiconductor manufacturer with over 80,000 different parts and a global supply chain, onsemi serves tens of thousands of customers across hundreds of markets. This would also include automotive and industrial solutions, along with 5G, cloud, and Internet of Things. ON stock currently trades at $48.63 as of 2:35 p.m. ET and is up by over 120% in the past year alone.
On September 15, 2021, the company unveiled a new system solution that overcomes the main challenges associated with developing asset tracking tags. Its RSL10 Asset Tag offers an unprecedented, industry-leading battery life of up to five years. It was also recently selected for use in an indoor localization beacon designed to track and monitor hospital equipment and provide actionable insight to health care providers. Last month, the company also announced that it will acquire GT Advanced Technologies, a producer of silicon carbide (SiC) for $415 million in cash. SiC is a key material for next-generation semiconductors. All things considered, will you add ON stock to your portfolio?Source: TD Ameritrade TOS Advanced Micro Devices Inc.
Following that, we have Advanced Micro Devices (AMD), a multinational semiconductor company with headquarters in California. The company has driven innovation in high-performance computing, graphics, and visualization technologies. It boasts hundreds of millions of consumers and its products are used by leading Fortune 500 businesses. AMD stock currently trades at $104.04 as of 2:35 p.m. ET and is up by over 30% in the past year.
In late August, the company announced that its EPYC processors were picked by Argonne National Laboratory to power a new supercomputer called Polaris. Polaris will help prepare researchers for the forthcoming exascale supercomputer at Argonne called Aurora. This is testimony to AMD being a leading choice for modern high-performance computing research, and the company continues to deliver the performance and capabilities needed to help solve the complex problems that pre-exascale and exascale computing will address. With that being said, will you consider AMD stock a buy today?Source: TD Ameritrade TOS Qualcomm Inc.
Next up, we will be taking a look at Qualcomm. Similar to our previous entry, Qualcomm is among the top names in the semiconductor market now. In brief, the California-based company develops and markets a wide array of semiconductors and related software services now. This allows the company to cater to notable end markets globally. Notably, the company’s offerings have and continue to play a big role in enabling 5G and 4G wireless tech worldwide. As it stands, QCOM stock currently trades $133.23 a share as of 2:36 p.m. ET. After gaining by over 110% since its pandemic era low, could QCOM stock still have room to run?
If anything, Qualcomm seems to be firing on all cylinders now. On the operational front, the company is now collaborating with semiconductor manufacturer GlobalFoundries. Through this team-up, the duo will be expanding their existing radio frequency-related partnership, further bolstering their cutting-edge 5G offerings. On the financial end, Qualcomm posted stellar figures in its latest fiscal quarter posted back in July. In essence, the company raked in a total revenue of $8.06 billion for the quarter, a solid 64% year-over-year increase. Over the same period, Qualcomm also saw surges of over 139% in both its net income and earnings per share. After considering all of this, will you be investing in QCOM stock anytime soon?Source: TD Ameritrade TOS