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Best Stocks To Buy Now? 4 Semiconductor Stocks To Watch

Are these the best semiconductor stocks to invest in amidst the ongoing global chip shortage?

best stocks to buy right now (semiconductor stocks)

Top Semiconductor Stocks To Watch This Week

Semiconductor stocks were among the best performers in the stock market last year. This was likely due to a surge in demand for all things digital as more people were forced to stay at home. This has inadvertently contributed to a global shortage of semiconductors. This is because almost everything that we use today is powered by semiconductors. The electric vehicle (EV) that you are driving from Tesla (NASDAQ: TSLA) or NIO (NYSE: NIO) is powered by semiconductors. Even the latest gadgets you have today are powered by semiconductor tech from Qualcomm (NASDAQ: QCOM) and Apple (NASDAQ: AAPL).

The outlook however is promising for the sector and could have the foundation it needs to grow in 2021. For instance, President Biden’s infrastructure plan that was announced last week would help strengthen U.S. leadership in semiconductors. The president’s plan to invest ambitiously in U.S. semiconductor workers, manufacturing, and innovation. Congress in January also enacted the CHIPS for America Act in January. The act will create a 40% refundable investment tax credit for qualified semiconductor equipment. This would help U.S. companies strengthen their supply chain to better protect their technology. Given the exciting developments surrounding the industry, will you consider buying these four top semiconductor stocks?

Best Semiconductor Stocks To Buy [Or Avoid]

Advanced Micro Devices Inc.

Advanced Micro Devices or AMD, is a global semiconductor company based in Santa Clara, California. It develops computer processors and related technologies for both business and consumer markets. In detail, it develops the world’s most powerful processors and power devices of all shapes and sizes. From supercomputers to game consoles, the company continues to make huge strides in the semiconductor industry. AMD stock currently trades at $80.91 as of 1:05 p.m. ET.

Source: TD Ameritrade TOS

The company will have a Special Meeting of Stockholders to vote on the proposed acquisition of Xilinx (NASDAQ: XLNX) by AMD on April 7, 2021. The acquisition will bring together two industry leaders with complementary product portfolios and customers. This would include CPUs, GPUs, FPGAs, and deep software expertise. Ultimately, this acquisition would enable leadership in computing platforms for cloud, edge, and end devices. The two companies will also be able to capitalize on opportunities spanning some of the industry’s most important growth segments like gaming and data centers. With so much happening to the company, will you consider buying AMD stock today?

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Taiwan Semiconductor Mfg. Co. Ltd.

Taiwan Semiconductor is a Taiwanese multinational semiconductor contract manufacturing and design company. It is a pure-play foundry business company that boasts the world’s largest dedicated semiconductor. For the uninitiated, a foundry is a factory where devices such as integrated circuits (IC) are manufactured. TSM stock currently trades at $123.52 as of 1:05 p.m. ET and has been up by over 130% in the last year.

Source: TD Ameritrade TOS

Last week, the company announced that it will be expecting to invest over $100 billion into advanced chips over the next 3 years. This would include expanding its manufacturing capacity to keep up with rising demand. Industry megatrends like 5G and high-performance computing will fuel strong demand for the company’s technology over the next several years. This could ultimately provide solid earnings for the company in the years to come. All things considered, will TSM stock be a top semiconductor stock to add to your portfolio?

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Nvidia Corporation

Nvidia is a multinational technology company based in California. It designs graphics processing units (GPUs) for the gaming and professional markets. The company also designs systems on chip units (SoCs) for the mobile computing and automotive market. Nvidia essentially reinvented modern computer graphics and has been a leader in visual computing for decades. In 2018, the company introduced Nvidia RTX ray-tracing technology that has paved the way to new levels of art and realism in real-time graphics. The company’s share currently trades at $557.15 as of 1:06 p.m. ET.

Source: TD Ameritrade TOS

It also reported its fourth-quarter and fiscal 2021 financial results in February. In it, the company posted a record quarterly and full-year revenue. Quarterly revenue was $5 billion, a 61% increase year-over-year. Its full-year revenue was an impressive $16.68 billion, a 53% increase compared to a year earlier. The year certainly reflected a breakout year for Nvidia’s computing platforms. Its pioneering work in accelerated computing has led to gaming becoming the world’s most popular entertainment. Demand for the company’s latest RTX 30 series GPUs has also been off the charts as it has started a major upgrade cycle. Its data center segment also saw a jump of 97% in revenue, at $1.9 billion. For these reasons, will you consider buying NVDA stock?

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Micron Technology Inc.

Micron is a world leader in innovating memory and storage solutions that accelerate the transformation of information into intelligence. It has the world’s broadest portfolio of technologies at the core of today’s most significant disruptive breakthroughs such as artificial intelligence and autonomous vehicles. MU stock currently trades at $93.81 as of 1:10 p.m. ET and has doubled in the last year.

Source: TD Ameritrade TOS

Last week, the company reported its second-quarter fiscal. The company continues to see strong demand for its products and continues to enjoy robust growth across multiple end markets. Micron also posted a revenue of $6.24 billion, which is an 8% increase year-over-year. GAAP net income for the quarter was $603 million.

“Micron’s strong fiscal second-quarter performance reflects rapidly improving market conditions and continued solid execution,” said Micron Technology President and CEO Sanjay Mehrotra. “Our technology leadership in both DRAM and NAND places Micron in an excellent position to capitalize on the secular demand driven by AI and 5G, and to deliver new levels of user experience and innovation across the data center and intelligent edge.” With that in mind, will you consider buying MU stock?

By Joe Samuel

Joe Samuel is a dedicated stock market researcher and financial contributor. His love for the stock market started at a young age learning from his grandfather. Joe earned a bachelor of science degree in corporate finance and business management. After finishing college, he went the route of an entrepreneur starting numerous businesses and eventually became a financial contributor to a number of outlets including Seeking Alpha, Invesitng.com, and actively contributes to FactSet. At StockMarket.com, Joe looks for emerging stories. One of his traits is identifying new trends before they become mainstream. Whether it’s a biopharmaceutical company debuting a novel treatment or the next technology start-up developing a new platform, Joe looks to be on the cutting edge of that trend.

After years of living in New York, he made the move to Miami, Florida where he’s become an active member of the finance community. Joe has worked with early-stage companies in marketing and consulting capacities, which has given him an opportunity to see what makes companies tick. His viewpoint is that while corporate news is vital to any investment, it’s what isn’t “right in front of you” that can make a good investment great. His approach to the markets is one that aims to deliver information that might not be well-known. But through deep research and diligence, Joe has written about and been able to uncover time-sensitive information when seconds matter in the stock market today.

Joe enjoys covering several stock market sectors. These include commodities, finance, biotechnology, and technology; specifically AI & machine learning. His no-nonsense approach to the market gives readers a cut and dry view of the news that matters most and topics beginning to emerge as new trends in the stock market. He was early to the table with calls on things like the last gold rush in 2019 and has been able to identify influential events and how they could impact certain industries.

During his free time, he enjoys spending time with his family and polishing up one new stock market trends. He’s also an avid car enthusiast with a passion for classic and muscle cars.

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