The semiconductor industry, foundational to the functioning of modern technology, has been experiencing considerable growth and attention in recent years. Semiconductors, or small chips function as the brain for various devices from smartphones and computers to vehicles and appliances. They are a vital part of our digitized society. Factors such as technological advancements, increased digitalization, and the growing need for smart, connected devices have contributed to the sector’s expansion.
The industry’s potential has led to an increasing interest in semiconductor stocks as an investment option. New technologies like 5G, artificial intelligence (AI), and the Internet of Things (IoT) are necessitating the development of more sophisticated and efficient chips. Moreover, the ongoing global chip shortage has highlighted the industry’s critical role, drawing attention from investors and impacting stock prices.
The semiconductor industry is diverse, featuring companies that design and manufacture a vast array of products. This diversity, while offering a broad investment spectrum, also presents certain risks. Fluctuations in demand, global supply chain disruptions, and rapid technological changes can create uncertainty. Nonetheless, if you’re keen on investing in the semiconductor sector, here are two companies to watch in the stock market now.
Semiconductor Stocks To Watch Today
NVIDIA Corporation (NVDA Stock)
To begin, NVIDIA (NVDA) is a designer of graphics processing units (GPUs). They are used in gaming and professional markets. As well as system-on-a-chip units (SoCs) for the mobile computing and automotive markets. Its high-performance GPUs are also popular in AI and machine learning applications.
Last month, NVIDIA announced a strategic partnership with SoftBank Corp. Their plan is to improve SoftBank’s future data centers by using NVIDIA’s powerful GH200 Grace Hopper Superchip. They want to make it easier to use AI applications and future 5G/6G services. They plan to create new AI data centers all over Japan using NVIDIA’s advanced MGX reference architecture and the GH200 Superchips, which is based on Arm Neoverse. The aim is not only to save money but also to boost energy efficiency, performance, scalability, and how resources are used for different workloads.
In the last month of trading action, shares of Nvidia stock have advanced by 7.40%. Meanwhile, as of Tuesday’s closing bell NVDA stock is trading at $424.05 a share.
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Taiwan Semiconductor Manufacturing Co. (TSM Stock)
Lastly, Taiwan Semiconductor Manufacturing Company (TSMC) is the world’s leading semiconductor foundry. The company is known for its advanced and specialized chip manufacturing processes.
Just last month, TSMC announced the inauguration of its Advanced Backend Fab 6. This significant development marks a milestone in the expansion of TSMC’s 3DFabric™ system integration technology. This new facility is TSMC’s first completely automated advanced packaging and testing fab that allows for integrated front-end to back-end process and testing services. The advanced capabilities of Backend Fab 6 provide TSMC with the flexibility to allocate capacity for advanced packaging and silicon stacking technologies like SoIC, InFO, CoWoS, and advanced testing. As a result, it aims to help improve production yield and efficiency.
Over the last month of trading, shares of TSM stock have dropped by -5.42%. While, as of the end of Tuesday’s trading day, TSM stock closed the day up 1.49% at $101.26 a share.