Semiconductor stocks to watch in December

November 29, 2022 01:13 AM AEDT | By Abhishek Sharma

Semiconductor stocks to watch in December — Image source: © Alexandersikov | Megapixl.com

Highlights:

MPs have called for a strategy for the semiconductor industry, which has been delayed for a long time.

In a report, they suggested supporting the creation of new "fabs", the industry name given to semiconductor factories.

After suffering a major setback during the COVID-19 pandemic, the semiconductor industry is gradually recovering to the track. However, the UK is lagging behind other nations and is missing out on the wave of investment in the sector.

Raising concerns over this, MPs have called for a strategy for the semiconductor industry, something that has been delayed for a long-time now. In a report on parliament's business committee, the MPs have also said that the government should explore forming partnerships to ensure that the country remains a part of the semiconductor supply chain.

Image source: © Wrightstudio | Megapixl.com

The requirement for semiconductors is expected to grow exponentially. During the COVID-19 pandemic, lockdown restrictions forced the chip factories to shut down, exposing the vulnerabilities of the economies. The MPs noted that the UK depends on chipmakers in other countries for its semiconductor requirements, with just a little prospect of a turnaround unless there's better support from the government. They further suggested supporting the creation of new "fabs", the industry name given to semiconductor factories.

Notably, manufacturers used more than one trillion semiconductor chips last year in devices ranging from cars and vacuum cleaners to artificial intelligence (AI) computers.

Amid this information, let's explore some related stocks listed on the London Stock Exchange.

Alphawave Ip Group Plc (LON: AWE)

The semiconductor firm provides next-generation wired connectivity solutions. It enjoyed a market cap of £767.44 million as of 28 November, with an EPS (earnings per share) of 0.02. The company's share value has depreciated by over 44% over the past year. The YTD (year-to-date) return also stands in a similar range at -45.45%. Shares of the company fell more than 2% on Monday and were trading at GBX 108.20 as of 1:17 pm GMT+1 on 28 November.

CML Microsystems PLC (LON: CML)

CML Microsystems is an FTSE AIM All-Share constituent which develops semiconductors for global communications markets. The company holds a market cap of £74.58 million, and its one-year and YTD return stands at 11.03% and 11.11%, respectively. The company has an EPS of 0.07. As of 1:23 pm GMT on Monday, its share price stood at GBX 470.00.

IQE Plc (LON: IQE)

The company belongs to the FTSE AIM UK 50 Index and supplies compound semiconductor epitaxial wafers for several electronics. The company has a market cap of £403.19 million and a negative EPS of -0.04 as of 28 November. The stock price has increased by almost 50% over the past year and on a YTD basis. As of 1:28 pm GMT on Monday, it was trading at GBX 52.00, up 3.79%.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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