9 Best Semiconductor Stocks of September 2023

The company offers platform products, such as central processing units and chipsets, and system-on-chip and multichip packages; and accelerators, boards and systems, connectivity products, and memory and storage products. ON stock has lost 10% since the beginning of 2022 yet has appreciated 71% over the past 12 months. Shares are trading at 12 times forward earnings and 3.5 times sales. LSCC stock has fallen more than 23% since the beginning of the year. Shares are trading at 33.3 times forward earnings and 13.6 times sales.

• The semiconductor industry has also been affected by the outbreak of COVID-19.
• Eight rate it a strong buy, 20 rate it a buy and three recommend holding.
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• Clearly, MRVL is looking to the future, though what the future looks like, beyond continued, if albeit lumpy expansion, remains difficult to discern.

The company operates in two segments, Semiconductor Solutions and Infrastructure Software. The company is creating crucial technology for crafting high-performance, energy-efficient chips with applications spanning healthcare, climate change, and sustainable energy. This mission is in sync with the objectives of the European Commission and its member states to drive innovation and tackle societal challenges.

Intel (INTC)

Off the charts, though, the company – which makes semiconductors for data storage, communications and consumer markets – is still displaying a relatively strong momentum. KLIC is a solid choice among semiconductor stocks for income investors too. It is yielding about 1.6%, and the company has averaged annual dividend growth of roughly 30% since 2018, when it was instituted. Sales growth, steady EPS improvement and a decent balance sheet are probably what insulated KLAC shares from the overall downdraft in semiconductor stocks. 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%. Investing in semiconductor stocks is a great way to boost your portfolio.

Recently, the company launched Frontline Cloud Services, the first cloud-based design platform for complex printed-circuit boards (PCBs). The software solution should cut back on IT bottlenecks and time devoted to analyses. Both the SOXX and QQQ groups are expected to achieve much better sales growth than the broad market over the next two years. Except for 2020, revenue and net income growth in recent years have been largely strong.

When will semionductor stocks go up in price?

For a company with a market cap of around $53 billion, this is a big number. Still, Taiwan Semi’s revenues were up 6.2% on a monthly basis in August. Wedbush analyst Matt Bryson called that performance “a good start” to the new quarter, even as China banned iPhones for government workers. Any expansion to the ban could hurt TSM stock, though, as the company is a big supplier of chips to Apple hardware. Like other semiconductor companies, share growth has been curbed by China’s iPhone ban, while Huawei’s 5G Kirin 9000S chip-powered smartphones have cut into Monolithic Power’s revenues. Further muddying the waters for Monolithic — and all semiconductor companies — is strained trade relations between the U.S. and China, which could dampen spending sentiment for consumers and companies.

Global automakers are facing a dire shortage of semiconductors worldwide. Data firm IHS Markit estimates that the global auto industry would produce about 700,000 fewer-than-expected cars in the first three months of 2021 due to the chips shortage. Car companies are losing millions each week because of the shortage as they have to idle their plants because of insufficient semiconductors. GM is expected to take a $1.5 billion to $2 billion hit on its net income in 2021 because of this shortage in 2021. The performance of semiconductor stocks can be unpredictable, and the semiconductor industry is wildly complex. There are hundreds of steps involved in manufacturing the most advanced circuitry, and dozens of players are involved in producing the equipment used to make semiconductor chips.

Since 2009, the company’s market capitalization has grown by 17,000% to $1.1 trillion in 2023. This semiconductor giant is up 29.9% so far in 2023, although performance has slowed in the last month, with shares down 6.4% through the first week of September. The stock is held in robust regard in high places — it’s a mainstay in Warren Buffett’s Berkshire Hathaway portfolio — and Citi analyst Christopher Danely remains bullish on the stock with a price target of $216. NXP closed at $203.05 on Sept. 8, leaving plenty of upside potential. The semiconductor industry, like most of the technology sector, was hit hard during the chip shortage of 2022, but it has bounced back strongly in 2023.

QUALCOMM, Incorporated (NASDAQ:QCOM)

Taiwan Semiconductor Manufacturing Company, or TSMC, is the world’s largest dedicated chip foundry, with over 58% market share in 2020 per Gartner. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. TSMC’s scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC. The foundry leader has an illustrious customer base, including Apple and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs.

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Best Semiconductor Stocks To Invest In Right Now

Shares in even the most promising companies in the industry can be volatile, so investing in top-performing semiconductor stocks requires a willingness to accept a degree of uncertainty. Over the long term, though, investing in these building law of average blocks of technology will likely continue to be a market-beating and profitable investment motif as demand for semiconductor chips continues to rise. Semiconductors are arguable the most complex things ever developed by humankind.

Specifically, while the A100 can send data at 600 gigabytes per second, the A800 can only transmit data at 400 gigabytes per second. 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. And the sledding was tough for the stock in 2022, down more than 38% for the year-to-date in October. In its fiscal first-quarter report ended Dec. 31, the company reported a 62% and 60% year-over-year decrease in revenue and earnings, respectively.

It works with other big tech companies—like Apple, AMD and NVIDIA—to design and then produce custom microchip designs. Qualcomm announced on Sept. 11 that it has signed a new agreement to supply 5G chips for iPhones until 2026, which gave its stock a bump up above breakeven year to date. The CHIPS and Science Act, passed in 2022, was intended to stimulate semiconductor research, development and production in the U.S. The country currently produces only about 10% of the world’s semiconductors, but this law aims to increase that number and reduce reliance on chips imported from Asia. After the semiconductor index fell by about 30% in 2022, it has bounced strongly in 2023, up about 37% year-to-date. Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here.

The shift to work from home generated demand for more tech devices, and the semiconductor industry struggled to keep up with the demand for chips worldwide. However, as the central banks have started monetary tightening, causing a slowdown in the global economy, the demand for discretionary tech products has reduced, causing a decline in sales for semiconductor companies. In 2023, the total sales of the global semiconductor industry are forecasted to be at $596 billion, a 3.6% decline YoY. With its stock surging 212% in 2023, Nvidia just keeps on rolling, buoyed by a huge demand for its artificial intelligence chip solutions that a wide spectrum of companies use to process AI-related tasks.

P/E ratios have ranged between 13.1 and 40.5 over the last five years. The stock is 7% below its 52-week high, and 30% below its 2022 all-time high. Analysts expect TSM’s earnings to expand by just over 20% per year over the next five years.

The company’s hardware is used to test logic, optical and memory integrated circuits, helping to boost quality and reliability. The firm’s earnings are expected https://1investing.in/ to rise 18.3% next year, accompanied by a sales increase of 10.8%. The longer-term analyst forecast is for yearly EPS growth approaching 30%, on average.

You can cash in on these new waves of innovation by investing in semiconductor stocks today. Shares are trading at 10.8 times forward earnings and 2 times sales. Though the semiconductor industry faced disruptive operations due to the pandemic and chip shortage, the overall performance of the industry remained intact. According to the Semiconductor Industry Association, global semiconductor sales showed 6.5% year-over-year growth at $439 billion in 2020. Moreover, the demand for data and services is nowhere near the end, so the future of this industry holds good prospects.