The semiconductor sector comprises companies that design, manufacture, and distribute microchips and related technologies. These components are essential for electronics, from smartphones to data centers and artificial intelligence systems. Semiconductor stocks represent ownership in these companies traded on public exchanges. The sector’s performance often indicates broader technology industry trends and global economic health.
Investing in semiconductor stocks can offer exposure to technological innovation and growth. The increasing demand for chips in various industries may provide long-term growth opportunities. Many established semiconductor companies pay dividends to shareholders. However, the sector faces unique challenges. Chip manufacturing requires significant capital investment and ongoing research and development. The industry is cyclical, with periods of high demand followed by oversupply. Global supply chain disruptions can impact production and sales. Competition is intense, particularly in specialized chip markets.
When evaluating semiconductor stocks, consider a company’s market position and technological capabilities. Assess their ability to adapt to rapidly changing technological requirements. Look at factors like research spending and manufacturing capacity. Be aware of geopolitical factors affecting global chip supply chains. Consider the impact of government policies on semiconductor manufacturing and trade. That being said, let’s look at two semiconductor stocks to watch in the stock market today.
Semiconductor Stocks To Watch Today
- Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM)
- Advanced Micro Devices Inc. (NASDAQ: AMD)
Taiwan Semiconductor Manufacturing Co. (TSM Stock)
First off, Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) is the world’s largest dedicated semiconductor foundry. They manufacture chips for other companies, including major technology firms, using advanced process technologies. TSMC produces a wide range of integrated circuits used in everything from smartphones to automotive systems.
Just this month, TSMC announced better-than-expected third-quarter 2024 financial results. In detail, the company reported Q3 2024 earnings of $1.94 per share, with revenue of $23.50 billion. This is in comparison with Wall Street’s estimates for the quarter which were earnings per share of $1.74, on revenue estimates of $22.72 billion. Moreover, revenue increased by 36.03% versus the same period, the prior year.
In the last six months of trading, shares of TSM stock have moved higher by 53.84%. Moving along, during Tuesday morning’s trading session, Taiwan Semiconductor stock opened red, down 1.32% so far, trading at $199.29 a share.
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Advanced Micro Devices (AMD Stock)
Next, Advanced Micro Devices Inc. (AMD) is a semiconductor company that designs and develops high-performance computing and graphics processors. They create processors for computers, data centers, and gaming systems, competing in both consumer and enterprise markets.
Earlier this month, Advanced Micro Devices announced when they will be releasing their third-quarter 2024 financial results. Diving in, the company said it will report its Q3 2024 financial results on Tuesday, October 29, 2024, following the close of the U.S. stock market.
Looking at the past six months of trading action, Advanced Micro Devices stock has gained by 3.84%. Meanwhile, on Tuesday morning, shares of AMD stock opened lower by 2.25%, currently trading at $154.34 a share.
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