3 Semiconductor Stocks To Watch Right Now
The stock market has had its fair share of ups and downs since the start of the year. Semiconductor stocks are not spared from the volatility in the broader market. That is especially so considering that supply chain disruptions have been causing a shortage of semiconductor chips. In fact, it may even come as a surprise for some that almost every industry in the world today is reliant on semiconductors. For instance, the personal computers that we use require microprocessors, memory, graphic processing units, and many more. These are all semiconductor components that play crucial roles in making the machines operational.
Elsewhere, even the medical field utilizes advanced technology that requires semiconductors. Risky surgeries are now being aided by machines to improve precision. And, none of these would be possible without semiconductor chips. Similarly, as many newer vehicles come equipped with digital displays and semi-autonomous features, the auto industry needs more semiconductor chips than ever.
We only need to look at what Intel’s (NASDAQ: INTC) CEO Pat Gelsinger has to say. He believes that “there is an urgent need for the federal government to incentivize more private sector investment in the United States to enable a resilient and innovative semiconductor ecosystem.” On top of that, Micron’s (NASDAQ: MU) CEO Sanjay Mehrotra also calls on Congress to pass the refundable investment tax credit to create a long-term incentive that may invigorate domestic manufacturing in the industry. With that said, could we see a strong rebound from semiconductor stocks soon? If you think so, here are some of the top semiconductor stocks in the stock market today.
Semiconductor Stocks To Buy [Or Sell] Right Now
- NVIDIA Corporation (NASDAQ: NVDA)
- Axcelis Technologies Inc (NASDAQ: ACLS)
- Veeco Instruments Inc. (NASDAQ: VECO)
NVIDIA is a tech giant that has been on the rise at an unprecedented pace over the past few years. The company provides graphics and computer solutions around the world. NVIDIA invented the programmable shading graphic processing units (GPUs) two decades ago, defining modern real-time computer graphics. Today, it has reinvented computer graphics again. The company’s new approach using the NVIDIA RTX™ fuses rasterization and programmable shading with ray tracing and artificial intelligence to make graphics more realistic and almost cinematic.
On Tuesday, NVIDIA announced the launch of its new NVIDIA Omniverse™ features during the Game Developers Conference. This includes updates to Omniverse Audio2Face™, Omniverse Nucleus Cloud, Omniverse DeepSearch, and the introduction of Unreal Engine 5 Omniverse Connector. Therefore, it will make it easier for developers to share assets, sort asset libraries, and deploy AI to animate characters’ facial expressions in future games. Needless to say, these new developments would help address the challenges of doing business in today’s world.
On top of that, the company also recently announced the availability of its Jetson AGX Orin™ developer kit. This is the world’s most powerful, compact, and energy-efficient AI supercomputer for the field of robotics and autonomous machines. Besides that, there is also news reporting that NVIDIA is now open to the idea of using Intel to manufacture its chips. Intel’s CEO Pat Gelsinger also confirmed that there were ongoing discussions with Nvidia. Given these exciting developments, would you buy NVDA stock?
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Following that, we will be looking at Axcelis. Essentially, the company designs, manufactures, and services ion implantation and other processing equipment used in the fabrication of semiconductor chips. Additionally, it also provides aftermarket lifecycle products and services such as used tools, spare parts, maintenance services as well as customer training. Impressively, ACLS stock has been riding on strong bullish momentum. The stock has risen more than 115% over the past year.
Last week, Axcelis announced that it has shipped multiple of its Purion VXE™ high energy systems to multiple leading CMOS image sensor manufacturers in Asia. The Purion XVE is an extended energy range solution for its Purion XE™ high energy implanter. Evidently, the company remains a market leader in the image sensor market. Its growth in this segment appears to be sustainable and benefits from long-term trends such as the growing Internet of Things (IoT), mobile, and automotive markets.
Financially, the company has also been firing on all cylinders. During its fourth quarter, its revenue came in at $205.7 million, surpassing guidance and representing an increase of 14.7% compared to the third quarter. Net income for the quarter was $35.7 million or $1.05 per diluted share, up 29.8% compared to the prior quarter. Meanwhile, its revenue for the full year 2021 was $662.4 million, up 40% year-over-year, and is a company record. Overall, Axcelis appears to be in a prime position for a strong year ahead. With that in mind, do you consider ACLS stock a top semiconductor stock to watch?
Last but not least, we have the developer and manufacturer of semiconductor and thin-film process equipment, Veeco. In detail, its products are primarily sold to make electronic devices. The company covers a range of markets that includes semiconductor, photonics, communication and data storage, sensors, and even power markets. Despite trading sideways for most of the year, VECO stock has still risen more than 35% within the past year.
Recently, Veeco announced that a world-leading semiconductor manufacturer ordered multiple of its WaferStorm Wet Processing Systems. These are used for advanced packaging applications. The advantages that it brings are the low cost of ownership and process performance as compared to other platforms. Besides that, some customers operate its LSA201 Laser Spike Annealing System for their front-end-of-line processes. All in all, the growing demand for the company’s products puts it in a strong position for further long-term growth.
In February, Veeco announced its fourth-quarter and full-year 2021 financials. The company reported a revenue of $153.0 million, compared to $138.9 million in the same period last year. Furthermore, its GAAP net income turned positive to $8.2 million as compared to a net loss of $0.1 million in the prior year’s quarter. Safe to say, it was a successful year for the company as it continues to advance its product innovation and penetrate new customers. All things considered, do you think VECO stock will have more room to grow?