Semiconductors are small electronic devices that are used to power everything from computers and cell phones to solar panels and cars. The semiconductor industry is very important because semiconductor chips are used in most electronic devices. Semiconductor stocks refer to the stocks of companies that manufacture these chips. Chipmakers, such as Intel Corporation (NASDAQ: INTC) and Samsung Electronics (OTCMKTS: SSNLF), are among some of the largest semiconductor companies in the world.
Investing in semiconductor stocks can be risky, as the industry is subject to volatile swings in demand. Though, many stock market investors believe that semiconductor stocks will continue to outperform the market in the long run. However, there are also risks associated with investing in semiconductor stocks, such as the potential for technological obsolescence.
Semiconductors becoming increasingly important as our world becomes more digital and interconnected, could be contributed to making them a potential attractive bet for long-term investors. With that, here are four top semiconductor stocks for your list this week.
Semiconductor Stocks To Buy [Or Avoid] Now
1. Micron Technology (MU Stock)
Starting off our list today is Micron Technology (MU). In summary, Micron is one of the largest producers of semiconductor devices in the world. The company offers a wide range of products, including DRAM, SRAM, flash memory, and other semiconductor devices. Micron’s products are used in a variety of applications, including computer memory, mobile phones, digital cameras, and automobile electronics.
MU Recent Stock News
Meanwhile, just last week, Micron Technology reported its 4th quarter 2022 and 2022 full-year financial results. In the report, the company announced record revenue in verticals such as mobile, auto, industrial, and networking. For the fourth quarter of 2022, Micron Technology reported earnings of $1.36 per share with revenue of $6.6 billion. However, revenue fell for Q4 2022 by 19.7% on a year-over-year basis.
Separate from that, for the full-year 2022, Micron reported revenue of $30.76 billion, compared with $27.71 billion the previous year. Also, operating cash flow for fiscal 2022 came in at $15.8 billion, versus $12.47 billion in 2021. What’s more, the company said it’s projecting first-quarter non-GAAP results to range from a loss of $0.06 per share to earnings of $0.14 per share along with revenue estimates of $4.00 billion to $4.50 billion.
Micron Technology President and CEO Sanjay Mehrotra commented, “In fiscal 2022, Micron generated record revenue of $30.8 billion and delivered our sixth consecutive year of positive free cash flow, allowing us to return a record $2.9 billion to our shareholders. Our technology and manufacturing leadership in both DRAM and NAND, deep customer relationships, diverse product portfolio, and strong balance sheet put Micron on solid footing to navigate the weakened near-term supply-demand environment.“
MU Stock Chart
MU stock is set to open this week’s trading session at $50.10 after closing the last trading week modestly in the green at 0.35%. With this in mind, will you be keeping Micron Technology stock on your radar of semiconductor stocks in the stock market this week?
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2. Texas Instruments (TXN Stock)
Next up, let’s check out Texas Instruments Incorporated (TXN Stock). For the most part, Texas Instruments is a global semiconductor design and manufacturing company. The company’s focus is on developing analog chips and embedded processors. In turn, Texas Instruments supplies electronics manufacturers in the automotive, computing, consumer electronics, industrial automation, and healthcare markets.
TXN Recent Stock News
Just last month, Texas Instruments announced it has increased its quarterly cash dividend from $1.15 per share to $1.24 per share, reflecting an 8% increase. As a result, this equals a current annual dividend yield for TXN shareholders of 3.20%. With this dividend increase, the company has now increased its dividend for 19 consecutive years.
What’s more, the company also announced its Board of Directors has authorized an extra $15 billion in share buybacks of common stock. For context, this is additional to the company’s previously announced share repurchase program in June 2022 of approximately $8.2 billion. Therefore, as of the 2nd quarter of 2022, TXN has shrunk its outstanding shares by nearly 47% since the end of 2004 through share repurchases of common stock.
TXN Stock Chart
Shares of TXN stock are still down 18.79% so far in 2022. Going into the new trading week, TXN stock is set to open Monday’s trading session at $154.78 per share.
3. Taiwan Semiconductor MFG Co. (TSM Stock)
Taiwan Semiconductor Manufacturing Company (TSM) is a Taiwan-based company. In fact, TSMC is one of the world’s largest semiconductor foundries. For starters, the company offers a comprehensive range of wafer fabrication processes, including embedded non-volatile memory, silicon on insulators (SOI), high voltage, and 3D IC technologies.
TSMC also provides a wide range of packaging and testing services. For a sense of scale, as of 2021, Taiwan Semiconductor Manufacturing Company has deployed 291 distinct process technologies, while manufacturing 12,302 products for 535 customers.
TSM Recent Stock News
Last month, the company said it will announce its third-quarter 2022 earnings on Tuesday, October 13, 2022, at 2 pm EST. In the meantime, let’s dive into how TSMC performed in Q2 2022.
Back in July, Taiwan Semiconductor Manufacturing Company posted stronger-than-estimated 2nd quarter 2022 financial results. Diving in, TSM reported second-quarter 2022 revenue of $18.2 billion. This represents a 37% increase in revenue during the same period, a year prior. Additionally, TSMC posted Q2 2022 earnings of $1.55 per share.
In the second quarter, the company showed that most of its advances are results from robust markets for the automotive and IoT chip industry. Needless to say, it wouldn’t be surprising to see investors starting to pay close attention to TSMC ahead of its Q3 2022 financial results.
TSM Stock Chart
Going into this trading week, shares of TSM stock look to open at $68.56 per share. Considering that TSM stock is trading 52.71% off its 52-week highs of $145 per share, do you think now could be the right time to add TSM to your long-term portfolio?
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4. NVIDIA (NVDA Stock)
Rounding off the list is NVIDIA Corporation (NVDA). For the uninitiated, Nvidia Corporation is an American technology company. The company focuses on the design and manufacturing of graphics processing units (GPUs) for the gaming and professional markets. As well as system-on-a-chip units (SoCs) for the mobile computing and automotive market. Nvidia’s flagship product line, GeForce, offers high performance for gaming and other demanding applications.
NVDA Recent Stock News
In recent news, last month NVIDIA announced, that in collaboration with Deloitte, they will be working together to launch news services that are built on NVIDIA’s AI and Omniverse Platform. Specifically, this expansion of collaboration will aim to enable enterprises worldwide to develop and deploy hybrid-cloud solutions using Nvidia’s technology platforms.
“AI and metaverse technologies are reshaping the foundations of our economy,” commented Jensen Huang, founder, and CEO of NVIDIA. “Together, NVIDIA and Deloitte can help enterprises apply AI to create new products and services that reinvent their industries.”
NVDA Stock Chart
Shares of NVDA stock are still down approximately 59.70% as of this past Friday’s closing bell. NVDA stock is set to open this new trading week at $121.39 per share. All in all, do you think now is a good time to buy NVDA stock at these price levels?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.