Are These The Best Semiconductor Stocks To Buy Today?
Semiconductor stocks have been on the rise in recent years in the stock market, as the semiconductor industry has seen increasing demand from a variety of sectors. For example, electronic manufacturers have been turning to semiconductor companies for a variety of components, including chips for mobile phones, computers, and other electronics. Additionally, the automotive industry is increasingly using semiconductors for a variety of applications, such as engine management and infotainment systems. Investors looking to profit from the semiconductor boom, semiconductor stocks could be worth turning your attention to.
However, this week in the stock market has been a rocky one for semiconductor companies. On Monday, companies like NVIDIA posted weaker-than-expected revenue guidance that weighed on the industry. The iShares Semiconductor ETF (NASDAQ: SOXX) dropped over 5% during Tuesday morning’s trading session at $391.59. Although it hasn’t been a great earnings season for chipmakers as a whole, the fact remains the world is still heavily reliant on semiconductors. As such, investors may want to keep a close eye on the industry for a potential recovery. If this describes you, here are four of the hot semiconductor stocks to watch in the stock market today.
Best Semiconductor Stocks To Buy [Or Avoid] Today
- Nvidia Corporation (NASDAQ: NVDA)
- Advanced Micro Devices Inc. (NASDAQ: AMD)
- QUALCOMM Inc. (NASDAQ: QCOM)
- Micron Technology Inc. (NASDAQ: MU)
Nvidia Corporation (NVDA Stock)
First up, we have NVIDIA Corporation (NVDA), a multinational tech company that sells its graphics processing unit (GPU) and tech services. Actually, the semiconductor giant is a pioneer of GPUs and has been influential in driving the growth of high-performance computing and artificial intelligence (AI). The company’s pioneering work in accelerated computing has also reshaped trillion-dollar industries such as healthcare and transportation.
Late last month, NVIDIA pre-announced its second quarter fiscal revenue to come in at $6.7 billion. Previously, the company provided guidance of $8.1 billion in revenue for Q2. This means NVDA cut its revenue forecast for the quarter. This is mostly due to lower-sell-in of gaming products, which reflects a drop in channel partner sales likely because of macroeconomic headwinds.
“Our gaming product sell-through projections declined significantly as the quarter progressed,” commented Founder & CEO of NVIDIA Jensen Huang. “As we expect the macroeconomic conditions affecting sell-through to continue, we took actions with our Gaming partners to adjust channel prices and inventory.” Shares of NVDA stock are down over 5% on Tuesday at $168.64 per share.
Advanced Micro Devices (AMD Stock)
Next, let’s check out Advanced Micro Devices (AMD). Advanced Micro Devices (AMD) is widely referred to as a top semiconductor stock among investors. For the uninitiated, its segments entail Computing and Graphics, Enterprise, Embedded, and Semi-Custom. Currently, the company offers the industry’s broadest portfolio of leadership high-performance and adaptive processor technologies. Furthermore, the semiconductor company combines CPUs, GPUs, FPGAs, Adaptive SoCs, and deep software expertise to enhance leadership computing platforms for cloud, edge, and other end devices.
Moving along, last month AMD released its second quarter 2022 fiscal results. In the report, the company posted a record quarterly revenue of $6.6 billion. Representing an increase of 70% in revenue year-over-year. Also, AMD reported a record quarter for operating cash flow, which surpassed $1 billion. With that, Advanced Micro Devices recorded earnings per share of $1.05, in comparison to analyst estimates of $1.03 earnings per share.
Next, the company noted it anticipates third-quarter revenue of $6.50 billion to $6.90 billion and continues to project 2022 revenue of $26 billion to $26.6 billion. In detail, the consensus revenue estimate for the quarter is $6.86 billion, and revenue of $26.36 billion for the year. With all that said, on Tuesday shares of AMD stock are down over 5% trading at $94.25 a share.
QUALCOMM (QCOM Stock)
Following that, is Qualcomm (QCOM), a company that creates semiconductors, software, and services related to wireless technology. In fact, the company is a global leader in developing and commercializing foundational technologies that are used in today’s wireless products. Also, QUALCOMM licenses its intellectual property portfolio, which includes specific patent rights to manufacture and use certain wireless products.
In July, the chipmaker reported its third quarter 2022 fiscal results. In detail, QUALCOMM posted earnings per share of $2.96 on revenue of $10.9 billion. Wall Street consensus earnings expectations were earnings of $2.86 per share on revenue of $10.9 billion. As a result, QCOM’s third-quarter earnings were right in line with analyst expectations.
Cristiano Amon, President, and CEO of Qualcomm commented, “We are also excited to announce the extension of our patent license agreement with Samsung and the expansion of our strategic partnership to deliver leading premium consumer experiences for Samsung Galaxy devices. Qualcomm is well positioned to be the company bringing advanced connectivity, data processing and intelligence to the edge, enabling cloud-edge convergence.” During Tuesday’s lunchtime session, shares of QCOM stock are down 3.92% at $142.02 a share.
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Micron Technology (MU Stock)
Lastly, let’s dive right into Micron Technologies (MU). Micron is an industry leader in innovative memory and storage solutions transforming how the world uses information to enhance life for everyone. Also, the company has a robust portfolio of high-performance DRAM, NAND, NOR memory, and storage products. Micron’s innovations aim to drive the data economy, enabling advances in 5G technology & artificial intelligence.
Shares of MU stock fell over 5% on Tuesday. This comes after the company announced a warning that its revenue for this quarter may come in below or on the lower end of its most recent outlook the company provided in late June. Micron said its macro and supply chain woes are the main reasons for the revised guidance. Aside from that, the company also announced on Tuesday that they plan to make a $40 billion dollar investment to build leading-edge memory manufacturing in the U.S.
“I thank President Biden, U.S. Secretary of Commerce Gina Raimondo, and the full Administration as well as members of Congress for their bipartisan support of the CHIPS and Science Act, which is an important step toward solidifying American semiconductor leadership for decades to come. I am honored to take part in this historic White House bill signing ceremony with them and fellow executives,” quoted Micron President and CEO Sanjay Mehrotra. On Tuesday, shares of MU stock are trading at $57.85 per share.