2023 Semiconductor Stocks List The Top 10 Semiconductor Stocks Now

Taiwan Semiconductor Manufacturing Co. is the world’s largest semiconductor foundry, the industry term for contract manufacturing of semiconductors on behalf of customers. Many semiconductor companies outsource the manufacturing of their chips to Taiwan Semi. That said, many semiconductor stocks could generate strong returns, as the tech sector has promising growth prospects in the long run, despite its latest slowdown. Some of the major semiconductor stocks also pay strong dividends to shareholders, and raise their dividends each year. In mid-January, Taiwan Semiconductor reported (1/12/23) financial results for the fourth quarter of fiscal 2022.

Since its opening as a public company through its fiscal year 2022—31 years—TSMC has seen revenue CAGR (compound annual growth) of 20.4% and net income CAGR of 23.7%, according to data from S&P Global Market Intelligence. Long-term debt of $27.2 billion is offset by cash and cash equivalents of $50.8 billion. Fortunes have been made betting on the future of the semiconductor industry, but it can also be a tricky one. When assuring investors, SITM notes design wins, its leadership position, and quote activity, which are important.

Top Semiconductor Companies in India: Factors affecting them

Then, as cyclical investors moved into many top stocks, leading them to flash early signs of an upturn, another factor also came into play. Another sort of optimism, fueled by views that increasingly diverse end markets signaled a more durable, stable chip industry, also helped bolster the upturn. We agree with the market’s fears for a slowdown but we expect global demand for chips to recover in late 2023 or 2024. In February 2020, KLA announced the Archer™ 750 imaging-based overlay metrology system and the SpectraShape™ 11k optical critical dimension metrology system for integrated circuit (IC) manufacturing. These new systems help IC manufacturers maintain strict controls of the complex processes required to bring high-performance memory and logic chips to market, for applications such as 5G, AI, data centers and edge computing. If management can attain the growth it projects, this could be a sleeper, or possibly an acquisition target at some point.

While many tech stocks remain well below their all-time highs, NVIDIA’s stock is quickly approaching the $329 all-time high set in November 2021. The answer might be to stick with the largest companies with the easiest time producing materials. IDMs that design and manufacture their chips can keep up with demand and maintain profit margins in the face of rising costs. There are a lot of excellent semiconductor stocks and it’s not possible to cover them all.

Semiconductor Stocks Vs. ‘Trough-Calling Euphoria’

In 2021 and 2022, KLIC had customers who accounted for approximately 17% of sales in each year. The stock has also lost the favor of many analysts, suffering from earnings estimate cuts. This, combined with a bearish landscape, may make for tough sledding in KLIC shares.

Shares are up 21% in the past 12 months (more if you include the 1.4% dividend), versus the iShares Semiconductor ETF (SOXX), which is up just 2.8%. However, Qualcomm has used its connectivity chip know-how to expand into new areas to replace its Apple business and augment its slowing smartphone market, such as the Internet of Things and automotive technology. Additionally, 5G networks are creating a massive upgrade cycle as telecom companies update their services and consumers buy new smartphones to take advantage of the new network performance. The objective of the initiative is to plant around 20 semiconductor manufacturing, design, components, and display fabrication units in India. To enhance production various incentives have also been lined up for companies engaged in silicon semiconductor fabs, display fabs, semiconductor packaging, and design. It is also expected to create around 1.35 lakh jobs with the help of this scheme in the coming 4 years.

Microchip Technology

Semiconductor companies serving the auto market include Onsemi and STMicroelectronics, as well as NXP Semiconductors (NXPI) and Texas Instruments (TXN). Analysts now project Micron will book losses in all four quarters of this fiscal year, dropping for the year to an estimated $2.20 loss per share, vs. an $8.35 profit for 2022. “Meanwhile, chips used in the auto sector are now seeing a big surge in inventory,” Wood said. “The previous shortage of automotive chips has led to substantial double ordering.” “The industry got whipsawed by Covid and the supply chain issues,” Maire said.

Not only are they in everything, but are big everywhere, effectively providing diversity through exposure to economic and geographic sectors. Nvidia’s (NVDA, $277.49) share price has been on a roller-coaster ride over the past 12 months. The stock was down more than 61% for the year-to-date in October 2022, after the U.S. government initiated new restrictions on chip exports to China. Also notable also is the company’s commitment to research and development, spending nearly $450 million in the last quarter. Clearly, MRVL is looking to the future, though what the future looks like, beyond continued, if albeit lumpy expansion, remains difficult to discern. Semiconductor supply companies face a big concentration as there are a limited number of customers big enough to service the foundries and related companies.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

During the quarter, Texas Instruments generated revenues of $4.7 billion, which represented a decline of 3% versus the previous year’s quarter. This beat analyst estimates by $40 million, as the analyst community had forecasted a weaker sales performance. Texas Instruments managed to keep its gross profit margin at an attractive level of 66%, while operating profit margin of 47% remained strong as well. The company estimates there are one to two timing chips per device today, creating a market for 40 billion units. But this will grow to 125 billion units in 2030 as silicon-based timing applications proliferate and as consumers and industries own more connected devices. KLIC is a solid choice among semiconductor stocks for income investors too.

These components are highly important as they give life to the cloud computing revolution, artificial intelligence, and the software industry. Semiconductor chips act as both the “brains” and the infrastructure of the information economy. Most of the growth industries of today rely on processors, memory chips and integrated circuits. Without these components, there would be no cloud computing revolution, no artificial intelligence, and no software industry.

How do you invest in semiconductor stocks?

While many semiconductors stocks have been huge winners over the last decade, the sector has been rife with volatility from both economic and geopolitical sources. In this article, you’ll learn https://investmentsanalysis.info/ how to invest in semiconductors, how the industry works and where this sector will go. Discover dividend stocks matching your investment objectives with our advanced screening tools.

• TSMC has continued to make the investments to provide the newest semiconductor manufacturing possible for its customers, which include such tech luminaries as Apple
  AAPL
  , AMD, Qualcomm
  QCOM
  , NVIDIA
  DIA
  and Sony.
• SITM is a small-cap stock, and small companies can get buffeted by circumstances well beyond their control.
• Monolithic Power Systems is a leading semiconductor company that designs, develops, and markets high–performance power solutions.
• Also, the reopening of the China economy should help with the recovery, he said in a note to clients.

It accepts no liability for any damages or losses, however, caused in connection with the use of, or on the reliance of its advisory or related services. © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided ‘as-is’ and solely for informational purposes, not for trading purposes Best semiconductor stocks or advice, and is delayed. To see all exchange delays and terms of use please see Barchart’s disclaimer. NVIDIA’s institutional ownership numbers have also grown in the last three quarters following an early 2022 departure. NVIDIA’s most recent quarter saw more than $5.4 billion in inflows compared to just $2.2 billion in outflows.