Are These The Best Chip Stocks To Buy Right Now?
Chip stocks, much like most tech sectors in the stock market today, have been under significant pressure over the past year. Sentiments around the $550 billion chip industry were mixed on concerns of weakening consumer demand. Fortunately, it appears that there could be light at the end of the tunnel. On Thursday, Samsung posted a “better than feared” earnings guidance for its second quarter. Making it one of the earliest major chip companies to report earnings after a pivotal quarter.
The company announced that it expects the upcoming quarter’s revenue to increase to $59.8 billion, up 22% year-over-year. Meanwhile, its operating profit would likely grow by 12% to $10.6 billion. To say the least, it appears that fears of a slowdown among tech manufacturers could be less severe than initially expected. With Taiwan Semiconductor (NYSE: TSM), another major chip company, scheduled to release its earnings next week, all eyes could be on the sector. Building off these positive sentiments, chip stocks could be worth a look right now. So, here are five of the top names in the industry worth noting in the stock market today.
Chip Stocks To Watch Right Now
- Intel Corporation (NASDAQ: INTC)
- Advanced Micro Devices, Inc. (NASDAQ: AMD)
- Micron Technology, Inc. (NASDAQ: MU)
- Marvell Technology Inc (NASDAQ: MRVL)
- Texas Instruments Incorporated (NASDAQ: TXN)
First, we have one of the top names in the industry, Intel. Put simply, the company designs and manufactures products and technologies. For more than half a century, the company has been the heart of computing breakthroughs. Even now, many believe that Intel will play a huge role in several technological inflections such as artificial intelligence (AI), 5G network transformation, and many more. Now, why is that so? Well, silicon and software is the main driver for these inflections, and the company is at the heart of it all.
Recently, Intel officially acquired the land required for its Ohio manufacturing plant. According to NBC, an Intel spokesman confirmed that crews have begun work on the land. It appears that a team led by Gilbane Building Company will be responsible for the construction site preparation for its planned factories. Investors would be delighted with this piece of news as there were speculations that the $20 billion project could be scaled back if the CHIPS Act is not passed in the near term. Considering these circumstances, should investors be optimistic about the future of INTC stock?
Advanced Micro Devices
Similar to Intel, Advanced Micro Devices (AMD) is a force to be reckoned with in the chip sector. In detail, its segments include Computing and Graphics, and Enterprise, Embedded and Semi Custom. Today, AMD offers the industry’s broadest portfolio of leadership high-performance and adaptive processor technologies. The company combines CPUs, GPUs, FPGAs, Adaptive SoCs, and deep software expertise to enable leadership computing platforms for cloud, edge, and other end devices. Therefore, AMD stock is often mentioned among the top chip stocks in the stock market.
On top of that, AMD is not one that easily rests on its laurels. Late in June, the company announced the Versal™ AI Core series has been selected by Canon for its Free Viewpoint Video System. The Versal AI Core devices can deliver powerful machine learning-based video processing at the edge for Canon camera systems. With this, one may expect a revolution in the viewing experience for live sports broadcasting and webcasting. With that in mind, would AMD stock make it to the top of your watchlist?
Micron is a world leader in innovating memory and storage solutions. The company aims to accelerate the transformation of information into intelligence, inspiring the world to learn, communicate and advance faster than ever. Despite the company predicting a slightly weakened industry demand, Micron is still fundamentally sound. During its third quarter, the company reported revenue of $8.64 billion, an increase of 16.2% year-over-year. Meanwhile, its GAAP net income was $2.63 billion, or $2.34 per diluted share. Overall, the company is still confident that its long-term growth plans are intact.
Furthermore, Micron announced on Wednesday the commercial and industrial channel partner availability of its DDR5 server DRAM. This is in support of industry qualification of next-generation Intel and AMD DDR5 server and workstation platforms. It is a significant development as DDR5 memory enables up to an 85% increase in system performance over its previous generation, DDR4 DRAM5. Hence, as data continues to grow over time, this will address the critical need for the success of most businesses today. All things considered, would you bank on the future of MU stock?
Following that, we have a semiconductor company that focuses on chip development for the data infrastructure industry, Marvell. 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.
Last month, the company announced an expansion of its Canadian presence in Ottawa, Toronto, and Vancouver. With growth in mind, Marvell will be adding over 120 new employees to the Marvell Canada team. The team in Canada will be working on the development of critical technologies and solutions for some of the fastest-growing and lucrative end markets in the chip sector. Aside from that, it also shows that the company is reinforcing its commitment to hiring top semiconductor talent across major hubs around the world. With all said and done, would you consider investing in MRVL stock?
To sum up the list, we will be looking at Texas Instruments. Essentially, the company designs and manufactures semiconductors and various integrated circuits. Specifically, Texas focuses on developing analog chips and embedded processors, which account for more than 80% of its revenue. It is also one of the biggest semiconductor companies in the world based on sales volume. Additionally, the company produces its digital light processing technology and education technology products such as calculators and microcontrollers.
In June, Texas announced the expansion of its connectivity portfolio with a new family of wireless microcontrollers. These will allow high-quality Bluetooth Low Energy at half the price of competing devices. Not to mention, these microcontrollers feature the best-in-class standby current and radio-frequency performance. The SimpleLink™ Bluetooth LE CC2340 family is built on the foundation of the company’s decades of wireless connectivity expertise. Given such an exciting development, should investors be keeping a close tab on TXN stock?