Semiconductors are small electronic devices 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 shares of the companies that make these chips. Chip manufacturers, such as Intel Corporation (NASDAQ:INTC) and Samsung Electronics (OTCMKTS: SSNLF), are among some of the world’s largest semiconductor companies.
Investing in semiconductor stocks can be risky, as the industry is subject to volatile changes in demand. However, many stock market investors believe that semiconductor stocks will continue to outperform the market over the long term. However, there are also risks associated with investing in semiconductor stocks, such as the possibility of technological obsolescence.
Increasingly important as our world becomes more digital and interconnected, semiconductors could help make them an attractive potential 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 (Stock MU)
Starting our list today is micron technology (MU). In short, Micron is one of the world’s largest producers of semiconductor devices. The company offers a wide range of products, including DRAM, SRAM, flash memory, and other semiconductor devices. Micron products are used in a variety of applications, including computer memory, mobile phones, digital cameras, and automotive electronics.
Recent MU Stock News
Meanwhile, last week, Micron Technology reported fourth quarter 2022 and full year 2022 financial results. In the report, the company announced record revenue across verticals such as mobile, automotive, industrial, and networking. For the fourth quarter of 2022, Micron Technology reported earnings of $1.36 per share on revenue of $6.6 billion. However, revenue fell in the fourth quarter of 2022 by 19.7% year over year.
Other than that, for the full year 2022, Micron reported revenue of $30.76 billion, compared to $27.71 billion a year earlier. Additionally, operating cash flow for fiscal 2022 was $15.8 billion, compared to $12.47 billion in 2021. Additionally, the company said it is projecting non-GAAP first-quarter results ranging from a loss from $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 revenues 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 a strong footing to navigate the weakening near-term supply and demand environment.“
MU Stock Chart
MU shares are scheduled to open this week’s trading session at $50.10 after closing the last trading week modestly in the green at 0.35%. With that in mind, will you keep Micron Technology shares on your radar of semiconductor stocks in the stock market this week?
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2. Texas Instruments (TXN Stock)
Next, let’s take a look Texas Instruments Incorporated (TXN Action). 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, computer, consumer electronics, industrial automation and healthcare markets.
Recent TXN Stock News
Last month, Texas Instruments announced that it increased its quarterly cash dividend from $1.15 per share to $1.24 per share, reflecting an increase of 8%. As a result, this equates to a current annual dividend yield for TXN shareholders of 3.20%. With this dividend increase, the company has already increased its dividend for 19 consecutive years.
In addition, the company also announced that its Board of Directors has authorized an additional $15 billion in repurchases of common stock. For context, this is in addition to the company’s previously announced June 2022 share buyback program of approximately $8.2 billion. Therefore, as of the second quarter of 2022, TXN has reduced its outstanding shares by nearly 47% since the end of 2004 through repurchases of common shares.
TXN Stock Chart
TXN stock is still down 18.79% YTD in 2022. As the new trading week begins, TXN stock will open the Monday trading session at $154.78 per share.
3. Taiwan Semiconductor MFG Co. (TSM shares)
Taiwan Semiconductor Manufacturing Company (TSM) is a company based in Taiwan. In fact, TSMC is one of the largest semiconductor foundries in the world. For starters, the company offers a wide range of wafer fabrication processes, including embedded non-volatile memory, silicon on insulators (SOI), high voltage, and 3D IC technologies.
TSMC also offers a wide range of packaging and testing services. To get a sense of scale, as of 2021, Taiwan Semiconductor Manufacturing Company has implemented 291 different process technologies, while manufacturing 12,302 products for 535 customers.
Recent TSM Stock News
Last month, the company said it will announce its third-quarter 2022 earnings on Tuesday, October 13, 2022, at 2 p.m. EST. In the meantime, let’s break down how TSMC performed in the second quarter of 2022.
In July, Taiwan Semiconductor Manufacturing Company posted better-than-expected second-quarter 2022 financial results. Diving in, TSM reported Q2 2022 revenue of $18.2 billion. This represents a 37% increase in revenue over the same period, a year earlier. Additionally, TSMC posted earnings in the second quarter of 2022 of $1.55 per share.
In the second quarter, the company showed that most of its advances are the result of strong markets for the automotive and IoT chip industry. Needless to say, it wouldn’t be surprising to see investors start paying close attention to TSMC ahead of its Q3 2022 financial results.
TSM Stock Chart
Starting this trading week, TSM shares appear to open at $68.56 per share. Considering that TSM stock is trading 52.71% below its 52-week high of $145 per share, do you think now might be the right time to add TSM to your long-term portfolio?
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4. NVIDIA (NVDA stock)
Completing the list is NVIDIA Corporation (NVDA). For the uninitiated, Nvidia Corporation is an American technology company. The company focuses on the design and manufacture of graphics processing units (GPUs) for the professional and gaming markets. As well as system-on-a-chip (SoC) units for the automotive and mobile computing market. Nvidia’s flagship product line, GeForce, offers high performance for games and other demanding applications.
NVDA Recent Stock News
In recent news, last month, NVIDIA announced that, in collaboration with Deloitte, they will work together to launch news services that are powered by NVIDIA’s Omniverse platform and AI. Specifically, this collaboration expansion will aim to enable companies around the world 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 companies apply AI to create new products and services that reinvent their industries.”
NVDA Stock Chart
NVDA shares are still down approximately 59.70% from last Friday’s close. NVDA shares are scheduled to open this new trading week at $121.39 per share. Overall, do you think now is a good time to buy NVDA stock at these price levels?
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