Do You Have These Semiconductor Stocks On Your Radar?
Semiconductor stocks are among the hottest stocks in the stock market this year. This should not come as a surprise as demand for semiconductor chips is also at an all-time high. According to the Semiconductor Industry Association (SIA), semiconductor shipments reached an all-time high in the third quarter of 2021. During the quarter, worldwide sales of semiconductors totaled $144.8 billion, an increase of 27.6% from the same quarter last year. Well, with the ongoing high demand for chips, the industry is putting extraordinary efforts to ramp up production. After all, most would agree that semiconductors are the nerve center of the world’s economy, national security, and critical infrastructure.
Recently, we saw major corporate leaders, including Apple’s (NASDAQ: AAPL) CEO Tim Cook urging the congressional leaders to speed up a semiconductor aid bill. The legislation would provide $52 billion in grants and incentives for domestic chip production. Other notable companies supporting the letter are Intel (NASDAQ: INTC), Alphabet (NASDAQ: GOOGL), and many more. So, should Congress get these initiatives across the finish line, it would be a huge boost for semiconductor stocks. With that in mind, here are some of the top semiconductor stocks worth considering in the stock market today.
Best Semiconductor Stocks To Buy [Or Sell] This Month
- NVIDIA Corporation (NASDAQ: NVDA)
- Marvell Technology Inc (NASDAQ: MRVL)
- Micron Technology, Inc. (NASDAQ: MU)
- ON Semiconductor Corp (NASDAQ: ON)
Firstly, we will be looking at the semiconductor giant, NVIDIA. The company made its name through its graphics processing units (GPUs) for the gaming and professional markets. Not to mention, it also makes system-on-chip units (SoCs) for the mobile computing and automotive market. Given its ability to deliver excellence in various markets, it is no wonder that NVDA stock is having a stellar year thus far.
During the third quarter, NVIDIA posted record revenue of $7.1 billion, up 50% year-over-year. Out of which, gaming revenues were $3.22 billion and Data Center revenues were $2.94 billion. Both increased by 42% and 55% respectively compared to the prior year’s quarter. With record revenues across the board, the demand for NVIDIA’s products and services is surging at an unprecedented level.
Furthermore, the company along with Atos announced the Excellence AI Lab last month. Both companies hope to advance climate and health care research with exascale computing. Also, the lab will bring together scientists and researchers to help advance European computing technologies, education, and research. In the long run, it can only be beneficial for both companies as they continue to push the boundaries with the help of supercomputers. Given these considerations, would NVDA stock be worth buying now?
Marvell is a data infrastructure semiconductor solutions provider. Put simply, it principally engages in delivering the data infrastructure technology that connects the world. On top of that, the company’s subsidiary, Inphi Corporation, engages in providing analog and mixed-signal semiconductor solutions for the communications and cloud markets. MRVL stock has risen by over 10% in premarket trading today. So, let us see what has been the catalyst for this movement.
For starters, Marvell announced its third-quarter financial report yesterday. The company posted a record revenue of $1.21 billion, an increase of 61% year-over-year. This exceeds the high end of the company’s guidance. Meanwhile, its Non-GAAP net income for the quarter was $364 million or $0.43 per diluted share. These results instill confidence in investors and are a testament to the company’s progress thus far.
Concurrently, the company also introduced the industry’s first 802.1AE MACsec integrated dual 1000BT1 and 100BT1 PHYs. These Ethernet PHY solutions enable energy-efficient, secure in-vehicle networks and assist in achieving functional safety compliance at the system level. Ultimately, these new products would extend Marvell’s leadership position in automotive Ethernet PHY. With that in mind, would now be the right time to jump on the MRVL stock bandwagon?
Another top name in the semiconductor space now would be Micron. The company is a world leader in innovative memory solutions that transform how the world uses information. With a history of more than 40 years, it has been instrumental to the world’s most significant technology today. Despite trading sideways for most of the year, the company’s stock is slowly picking up its pace. MU stock has risen more than 15% just within the past month.
Last month, Micron announced that MediaTek has validated Micron’s low-power double data rate 5X DRAM for MediaTek’s new Dimensity 9000 5G flagship chipset for smartphones. Micron’s LPDDR5X will enable smartphone ecosystems to unlock the next wave of data-intensive applications powered by artificial intelligence (AI) and 5G innovations. These new levels of memory performance are increasingly critical and Micron aims to remain at the forefront of this growing industry.
Well, Micron is not one that easily rests on its laurels. On Wednesday, it announced an expansion of its business relationship with United Microelectronics Corporation (NYSE: UMC). This strengthens its customers’ supply chains and continuous access to products that are critical to its automotive and mobile customers. With all these exciting developments taking place, would you say that MU stock is a top semiconductor stock to buy now?
Last but not least, we will be looking at ON Semiconductor. The company is driving energy-efficient innovations to empower customers to reduce global energy use. Its portfolio includes sensors, power management, analog, logic, timing, connectivity, discrete, SoC, and custom devices. ON stock is yet another semiconductor stock that has been having an excellent year. It saw gains of more than 110% over the past year.
Earlier in November, the company announced that it will be collaborating with SensiML™ Corporation. The partnership aims to deliver a complete machine learning solution for autonomous sensor data processing and predictive modeling. In addition, developers using the RSL10-based platform and the SensiML software together can implement AI for smart industrial applications regardless of their expertise in data science.
On the financial end, ON Semiconductor has also been firing on all cylinders. Last month, the company reported yet another quarter of record results driven by strong demand for its intelligent power and sensing solutions. It posted a record revenue of $1.74 billion, up 32% year-over-year. Meanwhile, its GAAP diluted earnings per share were $0.70 compared to $0.38 in the prior year’s quarter. Safe to say, the company appears to be making sustainable progress in the right direction. All things considered, would you be investing in ON stock?