4 Top Semiconductor Stocks To Check Out Now
With renewed concerns over elevated levels of inflation and the possibility of an economic slowdown, the markets remain volatile. As such, investors could be turning to semiconductor stocks in the stock market this week. After all, semiconductors can be found in virtually every electronic device we use these days. And thanks to our growing reliance on our electronic devices and the rise of the Internet of things, semiconductors are crucial to our modern everyday lives. Hence, semiconductor companies such as Intel (NASDAQ: INTC) and AMD (NASDAQ: AMD) remain hard at work innovating to keep up with global demand.
In fact, Intel just recently made a rather notable announcement at its Intel Vision event. The company announced various advancements across silicon, software, and services. One of which is its Habana Gaudi 2 AI processor, which brings a massive leap in deep learning processing. With growing needs for cutting-edge technology, Intel aims to showcase how it can help fuel digital transformation and bring business value to its customers. Elsewhere, AMD announced last week the new additions to its graphics card lineup, which include the Radeon RX 6950 XT. This graphics card delivers incredible performance and breathtaking visuals for the most demanding games. With that being said, here are four semiconductor stocks to watch in the stock market today.
Semiconductor Stocks To Buy [Or Sell] Right Now
- Tower Semiconductor Ltd. (NASDAQ: TSEM)
- Marvell Technology Ltd. (NASDAQ: MRVL)
- Microchip Technology Inc (NASDAQ: MCHP)
- Skyworks Solutions Inc. (NASDAQ: SWKS)
Kicking us off today is Tower Semiconductor, 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%.
Yesterday, 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, is TSEM stock a buy?
Another notable semiconductor stock to watch 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. MRVL stock has risen nearly 30% over the past year.
The company last week announced that it has entered into an agreement to acquire the privately-held tech start-up, Tanzanite Silicon Solutions. In brief, Tanzanite has extensive expertise in Compute Express Link (CXL) technology, which essentially helps firms with infrastructure agility. Marvell believes that in the future, cloud data centers will be fully built on disaggregated architecture which utilizes CXL technology. As such, this strategic buyout is likely aimed at broadening Marvell’s silicon solutions portfolio which, in turn, will enhance the company’s cloud data center business. With this takeover in the works, should you invest in MRVL stock?
Following that, we have Microchip Technology. Put simply, the company engages in developing, manufacturing, and selling connected and secure embedded control solutions. Its easy-to-use development tools and comprehensive product portfolio enable customers to create optimal designs which reduce risk while lowering total system cost and time to market. On Monday last week, the company announced its financial results for its fourth-quarter and fiscal year 2022.
Diving into revenue, Microchip brought in record net sales of $1.84 billion, rising by 25.7% from the year-ago quarter. This exceeds the midpoint of the company’s own guidance of $1.82 billion. Besides that, Microchip reported a net income of $764.6 million and a diluted earnings per share of $1.35. For comparison, net income was $521.4 million and earnings per share were $0.93 a year ago. In the same report, Microchip also provided its outlook for the next quarter. Notably, it is forecasting net sales to range from $1.918 to $1.992 billion. Along with that, it expects net income to range from $740.5 to $766.3 million. Nevertheless, MCHP stock has been moving sideways for most of the year. On that note, will you be watching MCHP stock?
Closing off our list of semiconductor stocks today is Skyworks Solutions. In essence, the company primarily specializes in semiconductor manufacturing. Among its core end markets are the radio frequency, aerospace, industrial, medical, and mobile communication systems industries. For a sense of scale, Skyworks currently has operations throughout Asia, Europe, and North America. Given the importance of semiconductor chips in the 5G and broader tech industries today, SWKS stock could be worth watching. Earlier in the month, Skyworks announced its second-quarter results for the fiscal year 2022.
Namely, it delivered record revenues of $1.34 billion, representing a rise of 14% over the year prior and exceeding analyst estimates. Next to that, the company reported an operating income of $367.3 million with diluted earnings per share of $1.86. CEO Liam Griffin shared, “Broad market revenue was particularly strong, driven by accelerating demand for our IoT and automotive solutions, underscoring our continued diversification across the entire Skyworks portfolio. Moving forward, we are well-positioned for future growth and robust cash generation, underpinned by industry-leading manufacturing capabilities, continued investment in cutting-edge technologies and design win momentum over an expanding customer set.” Given the outlook, is SWKS stock one to add to your portfolio?