Are These The Best Semiconductor Stocks To Buy Right Now?
Semiconductor stocks are back in focus in the stock market today. This is in light of President Joe Biden’s recent call for a big cash infusion into the country’s semiconductor industry. During Biden’s State of the Union speech on Tuesday, he pushed Congress to send bipartisan legislation to his desk that would include more than $50 billion in subsidies to aid chip makers. This would help support the increase in U.S. chip manufacturing capacity. Certainly, this is partly due to the ongoing semiconductor chip shortage. However, the U.S. is also trying to reduce its dependence on foreign companies like Taiwan Semiconductor (NYSE: TSM).
With that being said, semiconductor companies are constantly working around the clock to advance their crafts. For instance, Microchip Technology (NASDAQ: MCHP) recently announced the NVMe 4016 SSD controller to address the market demand for high-performance solid-state drives. The company claims that it can deliver greater than 14 GB per second throughput and over 3 million IOPS. Besides, the technology would enable efficient utilization of resources in ever-growing data center and cloud computing infrastructures.
Elsewhere, Marvell (NASDAQ: MRVL) introduced the industry’s first 800 Gbps multimode platform solution. This would enable data center infrastructure to achieve higher speeds for short-reach optical modules and Active Optical Cable applications. This would allow the company to deliver the required bandwidth to support the data centers of tomorrow. With the continuous progress of the industry, it is no surprise that many investors pay attention to semiconductor companies. Thus, let’s take a look at some of the top semiconductor stocks worth considering in the stock market today.
Semiconductor Stocks To Buy [Or Sell] Right Now
- Broadcom Inc (NASDAQ: AVGO)
- Intel Corporation (NASDAQ: INTC)
- Advanced Micro Devices, Inc (NASDAQ: AMD)
- Micron Technology, Inc (NASDAQ: MU)
Starting off the list, we have the semiconductor giant, Broadcom. In detail, the company specializes in a range of semiconductor and infrastructure software solutions. Its semiconductor solutions segment is responsible for its semiconductor product lines and Internet protocol licensing. On the other hand, its infrastructure software segment includes its mainframe, BizOps, and cybersecurity software solutions. Basically, its field of expertise is in the movement of data in data centers, telecom, enterprise, and embedded networking applications. Despite a lackluster start to the year, AVGO stock has still risen by about 26% over the past year.
Last Thursday, Broadcom announced its industry-leading PCle Gen 5.0 portfolio as it sets the foundation for the ecosystem to build high-performance, next-generation servers. This would give the company the ability to seamlessly unify data centers where high-speed computing, data processing, and low latency is of utmost importance. In addition, new applications such as artificial intelligence, machine learning, and cloud computing will have a better platform for improvements moving forward. Now, investors should note that the company will be announcing its fiscal first-quarter earnings report after the market closes today. So, would you consider adding AVGO stock to your portfolio ahead of its earnings?
Following that, we will be looking at one of the largest semiconductor companies in the world, Intel. Essentially, the company engages in the design, manufacture, and sale of computer products and technologies worldwide. Intel supplies microprocessors to some of the top computer manufacturers which include the likes of Dell (NYSE: DELL) and HP (NYSE: HPQ). That said, INTC stock has been going through some rough patches over the past year. Could things be turning around this year? Well, the company seems to believe so.
In February, Intel hosted its 2022 Investor Meeting and provided key elements in its strategy for long-term growth. The company believes that the continued proliferation of technology would be a catalyst for sustained demand for semiconductors. This could potentially create a $1 trillion market opportunity by 2030. “With that opportunity in mind, today we outlined our strategy and roadmap for accelerating to 10%-12% year-over-year revenue growth by 2026,” said Pat Gelsinger, Intel’s CEO.
What’s more, the company announced earlier this year a new $1 billion fund to support companies building disruptive technologies for the foundry ecosystem. The fund will prioritize investments in capabilities that accelerate foundry customers’ time to market. Given these considerations, do you believe INTC stock will make a comeback soon?
Advanced Micro Devices
Similar to Intel, Advanced Micro Devices (AMD) is a semiconductor company that primarily caters to high-performance computing, graphics, and visualization technologies. Its products include x86 microprocessors, discrete graphics processing units (GPUs), chipsets for personal computers, data centers, and many more. Over the past year, AMD stock has climbed more than 45% despite the volatility in the stock market.
Not to mention, Amazon (NASDAQ: AMZN) Web Services announced last month that it will be expanding the use of the 3rd Gen AMD EPYC™ processors for its Amazon EC2 C6a instances. It appears that the C6a instances can offer up to 15% better compute price performance over previous generation C5a instances for various compute-focused workloads. So, it would be perfect to support compute-intensive workloads such as batch processing, distributed analytics, ad serving, and video encoding. Safe to say, this continued adoption is a testament to AMD’s advancement of technology in the cloud. With that in mind, would you consider buying AMD stock?
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Micron is a company that offers memory and storage solutions. Its portfolio of memory and storage technologies includes dynamic random-access memory (DRAM), negative-AND (NAND), three-dimensional (3D) XPoint memory, and NOR. For over 40 years, the company has played a significant role in the world’s most innovative technological advancements. These range from disruptive breakthroughs such as artificial intelligence to emerging autonomous vehicles. Factoring these thoughts, it is understandable why investors are often on the lookout for MU stock.
Furthermore, Micron recently announced it is delivering the world’s most advanced 176-layer NAND data center SSD. This would include Micron’s industry-leading NAND, which contains 176 layers of storage cells and proven CMOS-under-the-array technology. When integrated with its own DRAM, internally developed SoC and associated firmware, this vertically integrated SSD would allow the company to rapidly respond to customer needs in the market and support strengthened device security. Given these exciting developments, would you consider MU stock a top semiconductor stock to buy?