Top Semiconductor Stocks For Your Watchlist This Week

There is little doubt that technology plays a vital role in our daily lives these days. In light of this, semiconductor stocks are often on the top of many investor’s watchlists in the stock market. By now, it is probably the worst kept secret that we are facing a global shortage of semiconductor chips. Whether it is automotive vehicles or tech devices, every industry is facing challenges in its supply chain due to the chip shortage. However, as demand remains high, semiconductor companies are also ramping up their effort to meet the increasing demand. 

We saw Intel Corporation (NASDAQ: INTC) breaking ground on its two new factories in Arizona last Friday. This is part of its turnaround plan to become the leading manufacturer of chips for outside customers. With this addition, the factories will house Intel’s most advanced chipmaking technology and play a pivotal role in its effort to regain its title as the undisputed leading semiconductor chip company. The U.S. chip factory race appears to be heating up as rivals Taiwan Semiconductor (NYSE: TSM) has also purchased land to build its first U.S. campus in Phoenix. All in all, semiconductor stocks look to be in a strong position. So, would a list of the top semiconductor stocks in the stock market today be of your interest? 

Best Semiconductor Stocks To Watch This Week

Analog Devices

First, we shall be looking at the semiconductor giant, Analog.  Essentially, this is a company that designs, manufactures, and markets a portfolio of semiconductor solutions. This includes integrated circuits, software, and subsystems that leverage analog, mixed-signal and digital signal processing technologies. Despite trading sideways for most parts of the year, ADI stock is slowly picking up its pace, gaining more than 20% this year.

Last Wednesday, Analog announced that British brand Lotus Cars is planning to incorporate the company’s wireless battery management system in its next-generation electric vehicle (EV) architecture. Analog was selected for its increased design flexibility, battery repairability, and lighter weight. Also, the lack of a wire harness will ensure that Lotus can offer a lightweight solution that will optimize performance while delivering powerful performance cars with exceptional handling. 

It is also worth noting that the company has finally closed the acquisition of Maxim Integrated Products, Inc. last month. Together, it strengthens Analog’s position as a high-performance analog semiconductor company that aims to deliver the next wave of semiconductor innovations. Given these considerations, would you add ADI stock to your portfolio?

top semiconductor stocks (ADI stock)
Source: TD Ameritrade TOS

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ON Semiconductor

Following that, we have ON Semiconductor on the list. Put simply, the company is a leading supplier of intelligent power, and sensing technologies. It offers a portfolio of sensors, custom and system on chip (SoC), analog, logic, timing, and discrete devices. Investors have been bullish on the company’s stock and this should not come as a surprise. ON stock has more than doubled in price over the past year and is showing strong upward momentum. 

Earlier this month, the company unveiled a new system solution that overcomes the main challenges associated with developing asset tracking tags. The RSL10 Asset Tag will offer an industry-leading battery life of up to five years. Well, up to now, the accepted battery life for asset tracking tags has been a year or less. So, this major obstacle would hopefully be solved with the company’s new solution. 

On top of that, Ramaxel, a leading supplier of server, storage, and design service solutions, has selected intelligent cloud power technologies from ON Semiconductor for its upcoming Intel-based VR13.HC servers. The company has been a strategic partner for Ramaxel due to its superior quality, innovation, and supply capabilities that have enabled Ramaxel to deliver high quality and volume production. With these recent developments in mind, would you put ON stock on the top of your semiconductor watchlist?

ON stock chart
Source: TD Ameritrade TOS

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Aehr Test Systems

Another hot semiconductor company on the rise right now would be Aehr. For those unfamiliar, the company engages in the design, engineering, and manufacturing of test and burn-in equipment used in the semiconductor industry. AEHR stock is showing plenty of promise as of late. In fact, it has risen more than 50% just within the past week. So, let us look at the catalyst for this movement.

For starters, it announced an impressive fiscal first-quarter earnings last week. The company’s net sales were $5.6 million, up 181% year-over-year. Also, its GAAP net income was $696,000, compared to a mere $107,000 the prior year’s quarter. With its current trajectory, the company has raised its revenue guidance for fiscal 2022 by approximately 80% to at least $50 million. Should this come to fruition, it would be a monumental achievement for Aehr. 

Furthermore, the company has also added an additional $19.4 million in bookings. That brings its total bookings for the fiscal year to over $40 million as of the date of the announcement. The company’s strong bookings include several sizable orders from its lead silicon carbide test and burn-in customer for its FOX-XP™ systems and WaferPak™ Contractors. Safe to say, the company is firing on all cylinders and remains confident that the best is yet to come. All things considered, would you consider AEHR stock as an up-and-rising semiconductor company to watch? 

AEHR stock chart
Source: TD Ameritrade TOS

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Micron Technology

Micron is a company that offers memory and storage solutions. The company’s portfolio includes dynamic random-access memory (DRAM), negative-AND (NAND), three-dimensional (3D) XPoint memory, and NOR. The company’s stock has been trading sideways this year as there were uncertainties in the prices of memory chips as supply increased. That said, some may see its current price as an attractive entry point ahead of its fourth-quarter earnings report on September 28. 

Well, Wall Street expects the company to post earnings per share (EPS) of $2.33 and revenue of $8.22 billion. These numbers are a huge leap compared to its previous year’s quarter, whereby Micron posted $1.08 in EPS and $6.06 billion in revenue. Also, investors should also be aware that the company has a history of beating its earnings expectations. So, it would not be out of this world to assume that the company may repeat its strong financial performance.

Prospective investors should also note that the company has started volume shipping of the world’s first 176-layer NAND Universal Flash Storage (UFS) 3.1 mobile solution during the quarter. This piece of technology can unlock 5G’s potential with up to 75% faster sequential write and random read performance. So, do you think this would contribute to its fourth-quarter financials? If so, would you consider investing in MU stock ahead of its earnings report?

MU stock chart
Source: TD Ameritrade TOS

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