As we enter July, semiconductor stocks remain on the radar of many investors. We are seeing a comeback in the tech sector in the stock market and this includes semiconductor companies as well. Well, some may argue that semiconductors are one of the most important tech industries in the world today. Generally speaking, semiconductors are a fundamental part of most electronic parts and elements. In turn, these parts serve as core components for most electronic devices in our world today.  

Take NVIDIA Corporation (NASDAQ: NVDA) for example. The company’s stock has been on a bullish momentum ever since it delivered its impressive earnings report back in May. On top of that, many are keeping an eye on NVIDIA’s potential $40 billion acquisition of Arm Holdings from Softbank Group (OTCMKTS: SFTBF). Once the deal is completed, it will accelerate NVIDIA’s deployment of AI computing across all of the markets where Arm’s chip architecture is already dominant. With the growing momentum surrounding the industry now, here are some of the top semiconductor stocks to watch in the stock market today.  

Best Semiconductor Stocks To Watch Now

Seagate Technology Holdings 

Seagate Technology is a provider of electronic data storage technology and solutions. The company’s principal products are hard disk drives (HDDs). In addition to HDDs, it produces a range of electronic data storage products, including solid-state hybrid drives, solid-state drives, peripheral component interconnect express (PCIe) cards, and serial advanced technology architecture (SATA) controllers. STX stock has been up by more than 40% year-to-date. 

Last week, the company partnered with Axle Ai, the leading independent vendor of media search software. This collaboration is centered around Seagate’s Lyve™ edge-to-cloud mass storage platform. Axle’s software is a browser-based front end that makes it easy for media teams to remotely search and manage their content from anywhere. Hence, this provides complete solutions to manage video content and users will also have instant access. So, not only is your media safer, but it is also easier to locate now. 

There are also encouraging signs from the company’s financials. During its first quarter, Seagate delivered a strong financial performance that was driven by the record sales of its high capacity nearline drives. Seagate posted revenue of $2.73 billion and a GAAP operating margin of 14.1%. Well, this goes to show the strength of its HDD product portfolio and illustrates the increasing demand for mass capacity storage. With all these in mind, would STX stock be a top semiconductor stock to buy? 

semiconductor stocks (STX Stock)
Source: TD Ameritrade TOS

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Western Digital Corp 

Next, we have another semiconductor giant that specializes in data storage devices, Western Digital. Essentially, the company offers client devices, including HDDs, and solid-state drives (SSDs) for computing devices, smart video systems, gaming consoles, and various other electronic products. The company’s products are sold under the G-Technology, SanDisk, and WD brands. It has been a steady climb for the company stock this year. WDC stock has risen by over 30% since the start of the year.

In June, Western Digital announced its second-generation UFS 3.1 storage solution for 5G smartphones. The new Western Digital iNAND MC EU551 delivers the high-performance storage consumers need to be able to use their phones for emerging applications like AR/VR, 8k videos, and ultra-high-resolution cameras. Given how the average capacity in phones is growing, the demand for higher performance storage solutions such as the Universal Flash Storage (UFS) 3.1 would be on the rise as well. 

Furthermore, Western Digital has also announced the availability of its new high-performance Ultrastar® Edge server family. This brings computers closer to where data is generated for faster processing, lower latency, and real-time decision making, even when disconnected. With the growing adoption of 5G and the cloud, businesses and consumers are starting to expect super-fast performance with their applications. All this tells us that the company is geared in line with the technological advancement of today’s world. So, would you consider adding WDC stock to your watchlist? 

WDC stock
Source: TD Ameritrade TOS

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Micron Technology, Inc 

Micron designs, manufactures and sells memory and storage products worldwide. It offers memory and storage technologies, including DRAM, NAND, NOR, and 3D XPoint memory. The company also provides memory products for the cloud server, enterprise, client, graphics, and networking markets, as well as for smartphone and other mobile device markets.  

Last Thursday, Micron announced its third-quarter fiscal 2021 earnings report. The company’s revenue came in at $7.42 billion, an increase of 36.4% year-over-year. Meanwhile, its operating income was $1.8 billion, representing a 50.6% increase year-over-year. It is worth noting that this is the largest sequential earnings improvement in the history of the company. So, it appears that the company is firing on all cylinders in a thriving industry with increasing demand.  

The company’s third-quarter also saw the unveiling of its memory and storage innovations across its portfolio based on its 176-layer NAND and 1α (1-alpha) DRAM technology, as well as the industry’s first UFS 3.1 solution for automotive applications. Now, it represents a meaningful portion of its production. Therefore, one could say that the company is in the best position to capitalize on the long-term demand trends across the data center, intelligent edge, and user devices. All things considered, would you be keeping tabs on MU stock? 

MU stock price
Source: TD Ameritrade TOS

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Applied Materials, Inc 

Lastly, we have Applied Materials Inc (AMAT). In brief, the company is a leading name in terms of materials engineering solutions. Primarily, AMAT specializes in providing the necessary equipment, services, and software for the semiconductor manufacturing industry. Notably, the company achieves this via its expertise in modifying materials at atomic levels and on industrial scales. Given AMAT’s vital role in enabling the semiconductor industry, AMAT stock would be in the spotlight now. 

The California-based company unveiled last month a new way to engineer the wiring of advanced logic chips that enables scaling to the 3nm node and beyond. It has developed a new solution called the Endura® Copper Barrier Seed IMS™ that combines seven different process technologies in one system under high vacuum to improve chip performance and power consumption. 

With this solution, consumers can now have more capable devices and longer battery life. This unique, integrated solution is designed to accelerate performance, power, and area-cost roadmaps for its customers. Thus, do all these developments excite you as an investor? If so, would AMAT stock be at the top of your watchlist?

AMAT stock price
Source: TD Ameritrade TOS

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