4 Semiconductor Stocks To Watch Right Now
With the stock market attempting a recovery last week, investors may arguably be keeping tabs on the best semiconductor stocks in the stock market right now. This could be the case considering the rise of internet-of-things, which has contributed to chip demand skyrocketing in the past few years. From electric cars to medical equipment to our smartphones, semiconductors are needed in virtually every modern device these days. As such, seeing that the industry will continue to benefit from this growing demand, semiconductor stocks would continue to be in focus.
AMD (NASDAQ: AMD) could be a semiconductor stock that investors may be watching now. Recently, 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. This 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. With that being said, here are four semiconductor stocks to watch in the stock market today.
Semiconductor Stocks To Buy [Or Sell] Right Now
- Marvell Technology Inc. (NASDAQ: MRVL)
- Broadcom Inc. (NASDAQ: AVGO)
- Analog Devices Inc. (NASDAQ: ADI)
- Tower Semiconductor Ltd. (NASDAQ: TSEM)
Starting off our list today is Marvell Technology. For the most part, it is a semiconductor firm that primarily focuses on developing chips for the data infrastructure industry. Through Marvell’s cutting-edge chips, tech firms across the globe can move, store, process, and secure their data assets. Among Marvell’s core end markets are the enterprise, cloud, automotive, and carrier architecture industries. As tech firms continue to upscale their data processing infrastructure, MRVL stock could be worth looking out for. Over the past year, MRVL stock has increased in price by about 27%.
Last Thursday, the company reported its financial results for the first quarter of fiscal year 2023. For starters, Marvell brought in a net revenue of $1.45 billion, an increase of 74% year-over-year and exceeding the midpoint of its guidance it provided in March. The company attributes this growth to higher-than-forecasted results from the data center end market. Besides that, the company also posted a gross margin of 51.9%. In the same report, Marvell also provided its outlook for the second quarter. Namely, it expects revenue at the midpoint to grow by 5% sequentially and 41% year-over-year. All in all, given the strong quarter, is MRVL stock one to add to the portfolio?
Following that, we have Broadcom. In essence, the company designs develop, and manufactures semiconductors and related infrastructure software. Broadcom caters to the data center, networking, enterprise software, broadband, industrial, and storage industries. It accomplishes this by supplying hardware in the form of its semiconductors. On the flip side, Broadcom also offers software infrastructure solutions. These include data center networking, enterprise, mainframe, and cyber-security services. The likes of which focus on automation, monitoring & security, smartphone components, and telecoms. Over the past year, AVGO stock has risen in value by nearly 25%.
On Thursday last week, Broadcom announced that it will be acquiring enterprise software company VMware (NYSE: VMW). Accordingly, the cash-and-stock transaction will value the company at approximately $61 billion. For those unfamiliar, VMware is the company that pioneered virtualization technology, an innovation that transformed x86 server-based computing. CEO Hock Tan said, “Building upon our proven track record of successful M&A, this transaction combines our leading semiconductor and infrastructure software businesses with an iconic pioneer and innovator in enterprise software as we reimagine what we can deliver to customers as a leading infrastructure technology company. We look forward to VMware’s talented team joining Broadcom, further cultivating a shared culture of innovation and driving even greater value for our combined stakeholders, including both sets of shareholders.” Given this strategic acquisition, would you invest in AVGO stock?
Another top semiconductor company to note today is Analog Devices. Put simply, it designs, manufactures, tests, and markets a portfolio of semiconductor solutions. This includes integrated circuits (ICs), software, and subsystems that leverage analog, mixed-signal and digital signal processing technologies. In today’s tech-driven world, Analog prides itself on creating unmatched technologies and solutions for its customers in various industries such as automation, health care, and communications. Therefore, it is understandable why ADI stock is often on the radar of many investors.
On May 18, Analog announced the financial results for its second quarter of fiscal 2022. Some of the notable highlights include a revenue of $2.97 billion, which was up 79% year-over-year, and double-digit growth across all its end markets. Impressively, 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?
Last but not least, we have Tower Semiconductor. It is a leading Israeli-based foundry of high-value analog semiconductor solutions. For the most part, it manufactures advanced analog integrated circuits using specialty process technologies. In fact, Tower leads the analog ecosystem, bringing high-quality, innovative manufacturing solutions to various growing markets. The company provides solutions in industries such as the automotive, industrial, and medical industries. In the past year, TSEM stock has seen gains of nearly 80%.
Earlier in the month, the company posted record results for its first quarter in 2022. For starters, Tower brought in a revenue of $421 million, reflecting a 21% growth in revenue from the first quarter of 2021. Moreover, the company’s organic revenue grew by 29% year-over-year. Moving on to profits, Tower raked in a net profit of $54 million, up by 91% from the $28 million recorded last year. Accordingly, earnings per share were $0.50 compared to $0.26 last year. Besides that, the company managed to generate $137 million worth of cash flow from operating activities in the past quarter. Overall, considering the company’s performance, would you be watching TSEM stock?