Are These The Top Semiconductor Stocks To Invest In Today?
Even with inflation concerns chugging along, many would agree that semiconductor stocks remain relevant in the stock market today. After all, semiconductor chips are essentially the brains behind most of the tech surrounding us today. Not to mention, there is also the ongoing global shortage of semiconductor chips. The likes of which remain in demand across consumer and professional markets. As such, at a time where semiconductor stocks continue to recover from year-to-date losses, investors could be eyeing the industry.
For one thing, some of the biggest names in the space are not sitting idly by amidst all this as well. Take Taiwan Semiconductor Manufacturing (NYSE: TSM) for example. Yesterday, the company released its monthly revenue report. For the month, TSM reported a revenue of about $5.18 billion. This would mark a sizable 37.9% year-over-year increase for the company. On a year-to-date basis, TSM is seeing a 36.8% year-over-year jump in overall revenue so far. While all this is great, the company does not plan to slow down in the least bit on the operational end. As it stands, TSM is planning to invest up to $44 billion toward boosting manufacturing capacity and its workforce.
Likewise, other semiconductor firms like Qualcomm (NASDAQ: QCOM) remain hard at work expanding their portfolios. Namely, Qualcomm is now working with Chinese telco ZTE on end-to-end 5G time-sensitive networking (TSN) solutions for power grids. According to John Smee, SVP of Engineering at Qualcomm, open 5G TSN ecosystems such as this continue to benefit the industry. All in all, semiconductor chips are more in demand than ever and chip companies are upping their game accordingly. Could that make one of these semiconductor stocks top picks in the stock market now?
Semiconductor Stocks To Buy [Or Sell] In March 2022
- Advanced Micro Devices Inc. (NASDAQ: AMD)
- Nvidia Corporation (NASDAQ: NVDA)
- Marvell Technology Inc. (NASDAQ: MRVL)
Advanced Micro Devices Inc.
Starting us off today, we have Advanced Micro Devices, a semiconductor company that has driven innovation in high-performance computing, graphics, and visualization technologies. In fact, its products are used by billions of people all around the globe. Earlier in the week, the company announced the availability of its new AMD Radeon PRO W6600X GPU for the Mac Pro.
In detail, it is developed to help professional users push the limits of what is possible. Built on the award-winning AMD RDNA™ 2 architecture, AMD Infinity Cache™, and other advanced technologies, the new GPU delivers stunning visuals and exceptional performance to power a variety of today’s popular professional applications and workloads. “The AMD Radeon PRO W6600X GPU completes the AMD Radeon PRO W6000X product family, providing a mid-range solution with great performance for graphics-rich content creation,” said Scott Herkelman, senior vice president and general manager, Graphics Business Unit at AMD. “AMD is proud to offer Mac Pro users a comprehensive portfolio of powerful graphics solutions with amazing performance to meet all their creative design and content creation needs.”
Last month, the company also announced the expansion of Amazon’s (NASDAQ: AMZN) AWS. Diving in, AMD EPYC processor-based offerings with the general availability of compute-optimized Amazon EC2 C6a instances. According to AWS, the C6a instances offer up to 15% better compute price performance over previous generation c5a instances for a variety of compute-focused workloads. Given this piece of news, is AMD stock worth investing in?
Nvidia is a tech company that has essentially redefined modern computer graphics and revolutionized parallel computing. Also, the company has made huge strides in artificial intelligence (AI) through its GPU deep learning. It hopes to usher in the next era of computing, with the GPU acting as the brain of computers, robots, and self-driving cars. The company will be hosting its Nvidia Investor Day on March 22, 2022.
On February 16, 2022, the company announced its fourth-quarter and fiscal 2022 financial results. Firstly, it reported a record quarterly revenue of $7.64 billion, up by 53% from a year earlier. Its Gaming, Data Center, and Professional Visualization market platforms each achieved record revenue for the quarter and year. Secondly, the company also posted a GAAP earnings per diluted share of $1.18 for the quarter, more than doubling from a year ago. Nvidia says that it continues to see exceptional demand for its Nvidia computing platforms. It is also propelling advances in AI, digital biology, climate sciences, gaming, and autonomous vehicles among others.
Recently, it announced that, for the 14th consecutive year, each Academy Award nominee for the Best Visual Effects have used Nvidia’s technologies. They include names like Dune and blockbusters like Spider-man: No Way Home. All things considered, is NVDA stock a top semiconductor stock to add to your portfolio right now?
Marvell Technology Inc.
Another leading semiconductor industry player to know now would be Marvell Technology. In essence, the company specializes in making chips that serve to move, store, process, and secure data. Through Marvell’s semiconductors, organizations across a wide array of industries can move their information efficiently and safely. Among the company’s core end markets are the enterprise, cloud, automotive, industrial, and consumer spaces.
By and large, seeing as we live in the age of information, there would be plenty of use cases for Marvell’s offerings. This is evident from its latest quarterly earnings update. Last week, the company posted a record revenue of $1.34 billion for the quarter. In particular, this marks a solid 68.3% year-over-year jump in terms of revenue. According to CEO Matt Murphy, this is thanks to persistent revenue growth across all five of the company’s end markets.
Despite its current momentum, Marvell continues to grow its offerings. Earlier this week, the company unveiled its first-generation cloud-optimized co-packaged optics (CPO) tech platform. Simply put, the tech serves to enable overall faster connectivity for switches used in cloud data centers. At the same time, Marvell also claims that the CPO platform accomplishes this while reducing power consumption. With Marvell seemingly going from strength to strength, will you be keeping an eye on MRVL stock?