The best semiconductor stocks to buy this week? 3 to know
Are these the top semiconductor stocks to invest in this month?
As investors digest the latest earnings mix from big banks, semiconductor stocks remain relevant in the stock market today. For the most part, this industry has played and continues to play a crucial role around the world today. As most tech investors know, these chips are essentially the brains behind much of today’s technology. From smart wearables and cars to computers and high-end gaming and cloud computing technologies, this is evident. Couple that with the current weakness in the broader tech sector and investors could see an opportunity.
For example, we could look at the largest semiconductor manufacturer in the world, the Semiconductor manufacturing in Taiwan (NYSE:TSM). In its latest quarterly earnings update yesterday, the company saw green across the board. He notably envisages record revenues for the quarter, a total of 17.57 billion dollars. This represents a solid increase of approximately 36% year over year. According to TSM vice president and chief financial officer Wendell Huang, the company is seeing strong demand for its high-performance computing and automotive offerings. For the current quarter, TSM expects its momentum to continue in these areas with revenue growth of up to 43% year-over-year. Despite all this, TSM stock is still trading with a loss of around 23% year-to-date.
Nevertheless, other industry leaders also continue to push forward. Earlier this week, Intel (NASDAQ:INTC) has launched a $3 billion expansion of its Oregon research facility. With this move, Intel adds approximately 270,000 square feet of cleanroom space, boosting facility efficiency. Safe to say, semiconductor companies at all levels are taking advantage of the current global chip shortages. If all of this makes you want to jump on top semiconductor stocks, here are three more worth watching in the stock market right now.
Semiconductor stocks to buy [Or Sell] Now
Marvell Technology Inc.
To start, let’s take a look at Marvell Technology. In short, this semiconductor company mainly focuses on the development of chips for the data infrastructure industry. Using cutting-edge chips from Marvell, technology companies around the world can move, store, process and secure their data assets. Some of Marvell’s primary end markets include the enterprise, cloud, automotive, and carrier architecture industries. As tech companies continue to upgrade their data processing infrastructure, MRVL stock might be worth seeking out.
For one thing, even with investors moving into more defensive stocks, Marvell continues to expand its operations. Earlier this week, the company provided a key update on its cloud data center business. According to Marvell, its cloud data center’s Ethernet switch port shipments were up more than 100% year-over-year. This would show that the company’s offerings remain relevant as shipments have more than doubled. In addition, Marvell also points out that its share of the “overall data center switch market” has grown from 6% to 10% year over year. In detail, the company notes that its share of the 50G SerDes segment is at an all-time high of 31% for the quarter. This is commendable since it is a switch that is deployed by the “fast-growing cloud infrastructure market,according to Marvell.
Overall, the current developments bode well for the company’s future. This comes at a time when the Ethernet switch market continues to grow to greater heights. Throughout the previous quarter, the industry topped the $9 billion mark per quarter for the first time. With Marvell seemingly becoming a benchmark for companies in the ever-growing cloud data center space, MRVL stock could be in focus. Would you accept?
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Micron Technology Inc.
Another player to consider in the booming semiconductor industry would be Micron Technology. Namely, Micron is focused on providing innovative memory and storage solutions for customers. These come in the form of DRAM, NAND, and NOR memory storage products and related services. With its broad portfolio of modern storage solutions, Micron enables a wide range of technology industries today. From advancements in artificial intelligence (AI), 5G applications and data centers, to even companies scaling their data stores, Micron remains relevant.
Despite all this, Micron continues to find more room for growth. On Tuesday, the company revealed the volume production of its latest gaming memory product, the 16GB GDDR6X. Along with this reveal, Micron is also highlighting the differences between this iteration and its predecessor. According to the company, GDDR6X memory offers twice the capacity and up to 15% better performance. In theory, this increase in overall capacity will serve to push the limits of today’s cutting-edge gaming setups.
As it stands, the GDDR6X will ship with NVIDIA (NASDAQ: NVDA) RTX 3090 Ti flagship graphics cards. Commenting on all this, Mark Montierth, vice president of Micron. He says, “Micron is once again at the forefront of memory innovation powering today’s highest bandwidth solutions and built with advanced process and interface technology to enable continued leadership in graphics performance.“As such, do you consider MU shares a top buy in the stock market today?
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Last but not least, we have Broadcom. Overall, the company designs, develops and manufactures semiconductors and related infrastructure software. Similar to our previous entries, Broadcom caters to the data center, networking, enterprise software, broadband, industrial, and storage industries. It achieves this by providing hardware in the form of its semiconductors. On the other hand, Broadcom also offers software infrastructure solutions. These include data center, enterprise, mainframe, and cybersecurity networking services. The likes that focus on automation, surveillance and security, smartphone components, and telecommunications.
Even with its diverse library of offerings, Broadcom strives to innovate. This is evident as the company recently released an example of the availability of its Wi-Fi 7 ecosystem chip solutions. Why is this important you might ask? Well, quite simply, this is the first set of complete end-to-end chipset solutions for this generation of the ecosystem. According to Micron’s calculations, “These Wi-Fi 7 chips more than double the speed of Wi-Fi 6 and 6E solutions currently on the market, while simultaneously delivering reliable low-latency communications and extended range.”
Regarding the general demand for such a product, Broadcom notes that consumers continue to upgrade their Wi-Fi systems. This, he argues, is likely the result of the continued change in lifestyles due to the global pandemic. . More than two years after the initial onslaught, organizations around the world are adopting hybrid working arrangements. With such a change, Broadcom’s latest Wi-Fi technology would come in handy. After considering this, could AVGO stocks be worth investing for you?
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.