Are These The Top Semiconductor Stocks To Invest In This Month?
While investors digest the latest mix of earnings from big banks, semiconductor stocks remain relevant in the stock market today. For the most part, this industry has and continues to serve crucial roles across the globe today. As most tech investors would know, these chips are essentially the brains behind most of today’s tech. From smart handheld devices and cars to computers and high-end gaming and cloud computing tech, this is apparent. Pair this with the current weakness in the broader tech sector and investors could be seeing an opportunity here.
For example, we could look at the largest semiconductor maker in the world, the Taiwan Semiconductor Manufacturing (NYSE: TSM). In its latest quarterly earnings update from yesterday, the company saw green across the board. Notably, it is looking at record revenue for the quarter, a total of $17.57 billion. This represents a solid year-over-year increase of about 36%. According to TSM’s VP and CFO, Wendell Huang, the company is seeing strong demand for its high-performance computing and automotive offerings to thank for this. For the current quarter, TSM expects its momentum to continue in these sectors with revenue growing by as much as 43% year-over-year. Despite all this, TSM stock is still trading at a year-to-date loss of about 23%.
Nevertheless, other industry leaders continue to press forward as well. Earlier this week, Intel (NASDAQ: INTC) launched a $3 billion expansion of its Oregon research factory. Through the move, Intel is adding about 270,000 square feet of cleanroom space, bolstering the facilities’ efficiency. Safe to say, semiconductor firms across the board are leveraging the current global chip shortages. Should all this have you keen to jump on the top semiconductor stocks, here are three more worth watching in the stock market now.
Semiconductor Stocks To Buy [Or Sell] Now
- Marvell Technology Inc. (NASDAQ: MRVL)
- Micron Technology Inc. (NASDAQ: MU)
- Broadcom Inc. (NASDAQ: AVGO)
Marvell Technology Inc.
For starters, we will be taking a look at Marvell Technology. In brief, this semiconductor firm 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.
For one thing, even with investors rotating towards more defensive stocks, Marvell continues to grow its operations. Earlier this week, the company provided a key update on its cloud data center business. According to Marvell, its cloud data center ethernet switch port shipments are up by over 100% year-over-year. This would go to show that the company’s offerings remain relevant as shipments more than double. Additionally, Marvell also highlights that its share in the “overall data center switch market” is up from 6% to 10% year-over-year. In detail, the company notes that its share of the 50G SerDes segment is at a record high of 31% for the quarter. This is commendable seeing as it is a switch that is deployed by the “fast-growing cloud infrastructure market,” according to Marvell.
Overall, the current developments bode well for the company moving forward. This comes at a time when the Ethernet switch market continues to grow to greater heights. Throughout the previous quarter, the industry soared above the $9 billion per quarter run rate for the first time. With Marvell seemingly becoming a go-to for companies in the ever-growing cloud data center space, MRVL stock could be in focus. Would you agree?
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Micron Technology Inc.
Another player to consider in the booming semiconductor industry now would be Micron Technology. Namely, Micron focuses on providing innovative memory and storage solutions for clients. These come in the form of DRAM, NAND, and NOR memory storage products alongside related services. Through its deep portfolio of modern storage solutions, Micron enables a vast array of tech industries today. Whether it is advances in the fields of Artificial Intelligence (AI), 5G applications, and data centers, or even businesses scaling their data stores, Micron remains relevant.
Despite all of this, Micron continues to find more room for growth. On Tuesday, the company revealed the volume production of its latest gaming memory product, the 16Gb GDDR6X. Alongside this revelation, Micron also highlights the differences between this iteration and its predecessor. According to the company, the GDDR6X memory boasts twice the capacity and up to 15% higher performance. In theory, this increase in overall capacity will serve to extend the boundaries of today’s state-of-the-art gaming setups.
As it stands, the GDDR6X will be shipping alongside NVIDIA’s (NASDAQ: NVDA) flagship RTX 3090 Ti graphics cards. Commenting on all this is Mark Montierth, Micron’s VP. He says, “Micron is once again at the forefront of the memory innovation powering today’s highest bandwidth solutions and built with the advanced process and interface technology to enable continued graphics performance leadership.” As such, would you consider MU stock a top buy in the stock market today?
Last but not least, we have Broadcom. By and large, the company designs, develops, and manufactures semiconductors and related infrastructure software. Similar to our previous entries, 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.
Even with its diverse library of offerings, Broadcom is working to break new ground. This is evident as the company recently released sample availability of its Wi-Fi 7 ecosystem chip solutions. Why is this important might you ask? Well, simply put, it is the first set of comprehensive end-to-end chipset solutions for this generation of the ecosystem. By Micron’s calculations, “These Wi-Fi 7 chips more than double the speed of Wi-Fi 6 and 6E solutions on the market today, while simultaneously delivering reliable low-latency communications and extended range.”
Regarding the general demand for such a product, Broadcom notes that consumers continue to upgrade their Wi-Fi systems. This, it argues, is likely a result of the ongoing shift in lifestyles due to the global pandemic. Over two years since the initial onslaught, organizations around the world are adopting hybrid work arrangements. With such a shift, Broadcom’s latest Wi-Fi tech would come in handy. After considering this, could AVGO stock be worth investing in for you?