The semiconductor sector is a vast and complex industry that has been growing in recent years. It encompasses the design, manufacture, and sale of integrated circuits used in a variety of applications from consumer electronics to medical devices. As technology continues to advance, demand for semiconductors grows across multiple industries. This makes investing in semiconductor stocks a potentially attractive option for investors.
Semiconductor stocks are often grouped into three main categories: semiconductor manufacturers, foundries, and equipment suppliers. The key to success in the semiconductor sector is understanding the dynamics of each company’s business model and how they are impacted by industry trends. Investing in semiconductor stocks requires a deep understanding of the market and the ability to spot potential opportunities.
When investing in semiconductor stocks, it is important to analyze each company’s financials, including its balance sheet, cash flow statement, and income statement. Additionally, investors should look at the company’s product portfolio and how they are positioned in the industry. By taking these factors into consideration, investors can make informed decisions when investing in semiconductor stocks. With the right knowledge and research, investors can potentially reap the rewards of their investments in this rapidly growing sector. Keeping this in mind, here are two large-cap semiconductor stocks to watch in the stock market this week.
Semiconductor Stocks To Watch Now
- NVIDIA Corporation (NASDAQ: NVDA)
- Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM)
NVIDIA Corporation (NVDA Stock)
First up, NVIDIA Corporation (NVDA) is a leading semiconductor company. In brief, NVIDIA designs manufactures and markets computer graphics processors and related media communications products. Its core business lies in the visualization of complex data for professional workstations, gaming PCs, notebooks, mobile devices, and other consumer electronics.
Late last month, NVIDIA reported its 4th quarter and full-year 2022 financial results. In the report, the company announced fourth-quarter 2022 earnings of $0.98 per share, with revenue of $6.1 billion. This came in better than Wall Street’s consensus estimates for the quarter which were earnings per share of $0.81 and revenue estimates of $6.0 billion. Additionally, NVIDIA said it estimates Q1 2023 revenue in the range of $6.37 billion to $6.63 billion.
Over the last month of trading action, shares of NVDA stock have surged by 24.55%. Meanwhile, going into Monday morning’s trading session, NVDA stock is trading slightly higher during pre-market trading up by 0.12% at $257.55 a share.
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Taiwan Semiconductor Manufacturing Co. (TSM Stock)
Next, Taiwan Semiconductor Manufacturing Company Ltd. (TSM) is a world-leading provider of semiconductor design, manufacturing, and packaging services. It offers integrated semiconductor solutions to its customers worldwide, including advanced technologies such as application-specific integrated circuit (ASIC) design, foundry services, system-on-chip (SoC) development, and memory module fabrication. TSM is the world’s largest dedicated foundry with a global customer base.
Back in January, TSM reported its 4th quarter 2022 financial results. Diving in, the company released earnings of $1.82 per share on revenue of $19.9 billion. This is in comparison to analysts’ consensus estimates for Q4 2022 which were earnings of $1.80 per share and revenue estimates of $20.3 billion. Moreover, the company said it estimates Q1 2023 revenue in the range of $16.7 billion to $17.5 billion.
Looking at the last month of trading action, shares of TSM stock are up 2.09%. While, during Monday’s premarket trading session, TSM stock is trading modestly lower by 0.85% ahead of the open at $89.47 a share.
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