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Summary
- Stocks of semiconductor manufacturing company MoSys Inc (NASDAQ:MOSY, MOSY:US) jumped 44 per cent on Wednesday, May 19.
- MOSY shares have been riding high over the past week, recording a jump of 81.4 per cent.
- Its five-day average trading volume was over 31.7 million shares.
Stocks of semiconductor manufacturing company MoSys Inc (NASDAQ:MOSY, MOSY:US) jumped 44 per cent to close at US$ 5.46 on Wednesday, May 19.
The spike came after US Senate Democratic Leader Chuck Schumer presented a revised bipartisan legislation to approve a US$ 52 billion funding to boost the production and research of semiconductors in the US over the next five years.
In a bid to compete against China, the US is expanding its research on semiconductors. Schumer reportedly said that manufacturing in the US has suffered due to a chip shortage, adding that the US does not want to rely on foreign companies for chips.
Stocks of MoSys Inc, which engages in the development of semiconductors for communication devices, cloud networking and security appliances, seem to have received a positive response from investors following this development.
MOSY shares have been riding high over the past week, recording a jump of 81.4 per cent. Its five-day average trading volume was over 31.7 million shares.
MoSys Inc – Stock & Financial Performance
MoSys stock skyrocketed by 276.5 per cent in the past six months. Meanwhile, its year-to-date (YTD) growth is about 124 per cent. It touched a 52-week high of US$ 7.12 on February 18, 2021.
1-year chart of stock performance, RSI and moving average of MoSys Inc (Source: EODHD/Others)
While it holds a debt-to-equity ratio of 1.03, MoSys’ market cap stands at C$ 33.5 million, as per TMX.
On the financial front, MoSys posted a total net revenue of US$ 6.8 million and a gross profit of US$ 4.5 million in the fiscal year of 2020. The company's total assets valued at US$ 8.3 million in fiscal 2020, while its cash and cash equivalents amounted to US$ 5.9 million.
Semiconductors Industry Outlook
Ever since the trade spat between the US and China began, there has been an increased demand from lawmakers to revitalize US semiconductor manufacturing.
After US President Joe Biden took over the Oval Office this year, his administration identified the semiconductors industry as a strategic sector for domestic investment to compete with China.
According to reports, the size of the global semiconductor market is estimated to be valued at US$ 452.25 billion in 2021. It is likely to reach US$ 803.15 billion by 2028.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
