10 Semiconductor Stocks To Watch This Summer

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10 Semiconductor Stocks To Watch This Summer

 10 Semiconductor Stocks To Watch This Summer
Image source: Glitterstudio, Shutterstock

Summary

  • In Q1 ended May 2, 2021, NVIDIA’s revenue surged 84% YoY to US$5.7 billion. Its gaming and data center contributed the maximum revenue at US$4.8 billion.
  • On June 10, AMD announced that its EPYC processors would be used in Alletra 6000 HPE series.
  • Skyworks’ revenue surged 53% YoY to US$1.17 billion, and net income rose from US$181.1 million to US$325 million in the quarter ended April 2, 2021.

Emerging technologies, such as the Internet of Things, 5G and artificial intelligence, rely on semiconductor chips. These microchips are used to make electronic devices like mobile phones, laptops, washing machines, electric vehicles, cloud computing systems, and data centres. 

Due to high demand lately, semiconductor companies are working to increase their capacity. Their earnings over the past year are evidence of their growth. The pandemic had led to a chip shortage in the markets that led to strong demand for semiconductors in recent times.

Let’s explore ten semiconductor stocks here to understand their performance and plans.

Source: Pixabay.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM)

It is a US$613 company. It is the world’s largest chipmaker, with around 50% market share in 2019. The company was established in 1979 and went public in 1997. It logged revenue of US$47,694 million and a net income of US$18,189 million in the December quarter of FY20.

The company has a dividend yield of 1.19%. Its share price grew 115% over the past year and nearly 7% YTD. The stock closed at US$118.24 on June 10.


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NVIDIA Corporation (NASDAQ-GS: NVDA)

The company develops graphic processing units (GPUs).

In Q1 ended May 2, 2021, its revenue surged 84% YoY to US$5.7 billion. Its gaming and data center contributed the maximum revenue at US$4.8 billion.

It logged a net income of US$1.9 billion, up 109% YoY, during the quarter. It unveiled two new GPU models recently.

NVIDIA share rose 98% in the past year. It closed at US$697 on June 10.

Advanced Micro Devices, Inc. (NASDAQ: AMD)

The company makes microprocessors for computers and electronic items.

Its revenue grew around 93% YoY to US$3.45 billion in the March quarter. In the same quarter of the previous year, it logged revenue of US$1.79. AMD’s net income was US$555 million against US$162 million in the corresponding quarter of 2020.

On June 10, it announced that its EPYC processors would be used in Alletra 6000 HPE series.

AMD share has grown over 54% in the past year. It closed at US$81.56 on June 10.


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Skyworks Solutions, Inc. (NASDAQ: SWKS)

The company manufactures products for wireless connectivity and operates across the globe, including North America and Europe.

Skyworks’ revenue surged 53% YoY to US$1.17 billion, and net income rose from US$181.1 million to US$325 million in the quarter ended April 2, 2021.

In the year-ago quarter, its revenue was US$766 million.

Founded in 2002, the stock has a dividend yield of 1.19%. In April, the company announced to acquire Silicon Laboratories Inc.’s infrastructure and automobile business for US$2.75 billion.

The stock rose 37% rise in the year. It was trading at US$169.41 per share on June 10.

Source: Pixabay.

Micron Technology, Inc. (NASDAQ: MU)

It is another major semiconductor company and manufactures DRAM and NOR flash memory, among other products.

It booked revenue of US$6.24 billion in Q2 ended March 4, 2021, against US$4.79 in the corresponding period of 2020. Its net income increased by 48% to US$603 million against US$407 million in the same period of 2020.

It is a Fortune 500 company and is the 4th largest semiconductor company, with over 44,000 patents in its name.

Its share price has grown nearly 63% in the year. It closed at US$79.28 apiece on June 10.

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Broadcom Inc. (NASDAQ: AVGO)

It manufactures a range of semiconductors and infrastructure software solutions. In Q2 ended May 2, 2021, its revenue was up 15% YoY to US$6610 million, and GAAP net income was US$1,493 million compared to US$563 million in the corresponding period of 2020.

It has a dividend yield of 3.1%. In June, the company announced introducing an electro-optics platform with a capacity of up to 800Gb for data center and cloud networks to help support bandwidth demand.

Its share was trading at US$293.75 on June 11.

Texas Instruments Incorporated (NASDAQ: TXN)

It is the world’s largest analog chipmaker.

In the March quarter of 2021, its revenue jumped 29% YoY to US$4.29 billion. In the same quarter in the prior year, the revenue was US$3.33 billion. It logged a net income of US$1.75 billion against US$1.17 in 2020. Its dividend yield is 2.19%

On June 9, the company announced introducing SAR ADCs to its existing portfolio to enable high-precision data acquisition. The stock was trading at US$188 at the close on June 11.

Source: Pixabay. 

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Microchip Technology Incorporated (NASDAQ: MCHP)

It develops embedded control solutions for a variety of applications.

In Q4 ended in March, its revenue was US$1.47 billion, and its annual revenue stood at US$5.44 billion. In FY 2020, its revenue was US$5.27 billion.

Net income for FY 2021 ended March 31 was US$349.4 million, compared to US$570.6 million in FY 2020. This decrease was due to a loss in debt settlement.

Its products are sold across the globe, including the Americas and Europe. On June 8, it announced to deploy its MOSFET for commercial aerospace and defense applications.

Its shares were trading at US$153.44 apiece on June 11. The stock gained nearly 57% in the past year.

Applied Materials, Inc. (NASDAQ: AMAT)

It is the world’s largest semiconductor and software supplier. It reported revenue of US$5.58 billion, up 41% for the quarter ended May 2, 2021.

In the year-ago quarter, its revenue was US$3.96 billion. Net income rose 76% to US$1.33 billion against US$755 million in the 2020 quarter.

On June 10, the company announced a quarterly dividend of US$0.24%. Its dividend yield is 0.71%. The stock gained around 147% in the past year. It was trading at US$137.16 on June 10.


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Lam Research Corp. (NASDAQ: LRCX)

It manufactures wafer fabrication equipment for the semiconductor industry. It aims to build smaller and faster devices for electronic products like cellphones and computers.

Its revenue increased by nearly 54% YoY from US$2.5 billion to US$3.85 billion in the March quarter. Net income surged 86% from the previous year to stand at US$1.07 billion.

The stock closed at US$640.77 on June 10. It gained around 127% over the past year.

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