Are These The Best Semiconductor Stocks To Buy Right Now?
Much like most industries in the stock market, many semiconductor stocks have been in a correction from their pandemic-driven highs. Well, this has been going on for quite some time now. With that said, some investors may be wondering if the worst could be over soon. Notably, some of the biggest names, including Nvidia (NASDAQ: NVDA) and Marvell Technologies will be reporting their earnings this week. Thus, it could be a good idea to keep a close watch on the industry. Mixed sentiments aside, there are still plenty of exciting developments within the semiconductor industry.
For instance, GlobalFoundries (NASDAQ: GFS) recently announced the launch of GF Labs. This is a new program that extends the development horizon of innovative semiconductor technology. Also, GF Labs will focus on long-term roadmap differentiation that will enable its customers to develop innovative products and accelerate their time-to-market. Meanwhile, a report by Bloomberg suggests that Broadcom (NASDAQ: AVGO) is in talks to acquire VMware Inc (NYSE: VMW). If true, the deal would catapult Broadcom into a specialized area of software. Overall, the industry is still moving on the right trajectory. So, here are some of the top semiconductor stocks to watch in the stock market today.
Semiconductor Stock To Watch Right Now
- Marvell Technology Inc (NASDAQ: MRVL)
- Intel Corporation (NASDAQ: INTC)
- Advanced Micro Devices, Inc. (NASDAQ: AMD)
- Analog Devices, Inc. (NASDAQ: ADI)
Firstly, we have the semiconductor infrastructure supplier, Marvell. In detail, the company engages in the design, development, and sale of integrated circuits. The markets that it serves include data center, carrier infrastructure, enterprise networking, consumer, and automotive/industrial. Coming off a record fourth quarter to close off the fiscal year 2022, many investors will be keeping a close eye on its upcoming earnings result later this week. During the previous quarter, it reported a net revenue of $1.34 billion, up 68% year-over-year and exceeding the midpoint guidance provided by the company. Along with that, the company posted a non-GAAP net income of $429 million or $0.50 per diluted share.
Furthermore, Marvell also announced a definitive agreement to acquire Tanzanite Silicon Solutions earlier this month. For those unaware, this is a leading developer of advanced Compute Express Link™ (CXL) technologies. With this addition, Marvell will strengthen its CXL development initiatives. Silicon components based on CXL will facilitate new cloud data center architectures with significant performance and efficiency benefits. Keeping these factors in mind, would you consider investing in MRVL stock ahead of its earnings release on Thursday, May 26, 2022?
Intel would be no stranger to most people around the world. The multinational tech giant is one of the world’s largest semiconductor chip manufacturers. It is also the developer of the x86 series of microprocessors which are found in most personal computers (PCs) today. Despite mixed sentiments within the semiconductor industry, there has been plenty of excitement surrounding Intel this month. For starters, the company turned its focus to how it will meet the growing security needs of organizations during its inaugural Intel Vision event earlier this month. To help organizations better prepare for the challenges of tomorrow, Intel introduced an innovative service-based security implementation code-named Project Amber. This will provide organizations with remote verification in the cloud, edge, and on-premises environments.
On top of that, the company also recently introduced an open-source tool to migrate code to SYCL through a project called SYCLomatic. Naturally, this will help developers to easily port CUDA code to SYCL and C++ to accelerate cross-architecture programming for heterogeneous architectures. Additionally, this open-source project would also enable community collaboration to advance the adoption of the SYCL standard. In fact, this is a key step in freeing developers from a single-vendor proprietary ecosystem. All in all, there are multiple reasons for optimism surrounding Intel right now. With that said, would you add INTC stock to your watchlist?
Advanced Micro Devices
Next on our list, we have Advanced Micro Devices (AMD), a semiconductor company that continues to drive innovation in high-performance computing along with graphics and visualization technologies. In fact, its products are used by billions of people all over the world. Last week, the company announced a collaboration with Qualcomm (NASDAQ: QCOM) to optimize the Qualcomm FastConnect connectivity system for AMD’s processor-based computing platforms.
The collaboration will begin with AMD Ryzen PRO 6000 Series processors and the Qualcomm FastConnect 6900. Jason Banta, CVP and General Manager, OEM Client Computing of AMD, had this to say, “AMD Ryzen™ PRO 6000 Series processors with Qualcomm FastConnect 6900 enable next-generation business laptops to have the processing and connectivity tools needed to perform in modern environments, offering professional-strength remote manageability for users in the new, hybrid workplace.” The collaboration also represents the first step in forging a strong relationship between the two companies to bring superior wireless connectivity to the AMD mobile computing roadmap. Given this piece of news, is AMD stock worth investing in right now?
To sum up the list, we will be looking at another semiconductor giant, Analog Devices. Essentially, this is a company that designs, manufactures, and markets a portfolio of semiconductor solutions. This includes integrated circuits, software, and subsystems that leverage analog, mixed-signal and digital signal processing technologies. Now, ADI stock has been trading sideways since the start of the year. That still compares favorably to the performance of some of the top names within the industry this year.
Last week, Analog announced the financial results for its second quarter of fiscal 2022. Some of the notable highlights include revenue of $2.97 billion, which was up 79% year-over-year, and double-digit growth across all its end markets. Now, this marks the fifth consecutive quarter of record revenue by the company. This appears to be a testament to the unprecedented demand for Analog’s technology and its ability to meet those demands in a challenging supply backdrop. Aside from that, Analog also increased its share repurchases to $776 million and paid $398 million in dividends. With that in mind, would you consider ADI stock as a top semiconductor stock to watch?