Explore five semiconductor stocks powering the US electronics industry

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Explore five semiconductor stocks powering the US electronics industry

 Explore five semiconductor stocks powering the US electronics industry
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Highlights

  • The stock of Meta Materials Inc. (NASDAQ: MMAT) grew by 243.9% YTD.
  • Intel Corp (NASDAQ: INTC) has raised the full-year revenue guidance to US$73.5 billion.
  • Broadcom Inc. (NASDAQ: AVGO) Q2 FY 2021 revenue was up 15% YoY to US$6.61 billion.

Semiconductor stocks are companies that design, develop, and manufacture processor chips. These companies build integrated circuits like microchips, memory chips, etc., used in a wide range of industries, including space, consumer electronics, electric vehicles, and healthcare, among others.

The semiconductor stocks are on investors' radar of late as demand for chips has been increasing, with the electronics and the electric vehicle markets are witnessing robust growth.

Let's explore the top five semiconductor stocks drawing investors' attention amid a chip shortage.

Also Read: How a rise in TSMC chip price could affect the electronics industry?

Intel Corporation (NASDAQ: INTC)


Intel is a California-based semiconductor firm and operates globally. It manufactures computer processors and provides a range of cloud computing services.


Intel’s market cap is US$218.63 billion, the P/E Ratio is 11.98, and the forward P/E one year is 11.25. Its earnings per share (EPS) is US$4.50.

Microsoft has raised the system requirements for Windows 11. It is the first time that Microsoft raised the requirement for the operating system since the release of Windows 7. In addition, it is expected that the users of AMD Zen 1 chips will not be able to upgrade to the Windows 11 version due to the latest specifications. However, some Intel 7th gen processors might be able to run the latest version.

The company’s non-GAAP revenue rose by 2 percent YoY to US$18.5 billion in Q2, 2021. The non-GAAP net income increased by 6 percent to US$5.2 billion compared to US$4.9 billion in the previous year's quarter. Its earnings per share came in at US$1.28 against US$1.14 in Q2 2020.

It raised the full-year FY 2021 non-GAAP revenue to US$73.5 billion and non-GAAP EPS to US$4.80.

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The Intel stock was priced at US$54.86, up 1.80 percent from its previous close, at 9:35 am ET on August 30. Its stock value rose by 8.5 percent YTD.

Intel’s 52-week highest and lowest stock prices were US$68.49 and US$43.61, respectively. Its share volume on August 27 was 16,524,990.

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Advanced Micro Devices (NASDAQ: AMD)

AMD is a Sunnyvale, California-based semiconductor manufacturing company. It manufactures computer processors and other technologies. The company has a market cap of US$136.74 billion, a P/E ratio of 40.26, and a forward P/E one year of 49.07. Its EPS is US$2.80.

The company’s revenue surged 99 percent YoY to US$3.85 billion in Q2 of FY 2021. Its gross profit jumped 116 percent YoY to US$1.83 billion against US$848 million in the previous year's quarter.

AMD’s operating income soared 380 percent YoY to US$831 million compared to US$173 million in Q2, 2020. In addition, its net income was US$710 million or US$0.58 per share.

Also Read: Seven electronic stocks to keep an eye on post chip shortage

The AMD stock was up 1.13 percent to US$112.69 at 10:04 am ET on August 30. The stock increased by 20.69 percent YTD.

AMD’s 52-week highest and lowest stock prices were US$122.49 and US$72.50, respectively. Its share volume on August 27 was 61,030,010.

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NVIDIA Corporation (NASDAQ: NVDA)


NVIDIA is a technology company based in Santa Clara, California. It manufactures graphics processing units (GPUs) for gaming and other professional uses.

NVIDIA’s revenue surged 68 percent YoY to US$6.51 billion in Q2, 2022. Its gaming and data center revenue came in at US$3.06 billion and US$2.37 billion, respectively.

The company reported its non-GAAP net income of US$2.62 billion, or US$1.04 per diluted share in Q2, 2022, compared to US$1.36 billion or US$0.55 per diluted share in the year-ago quarter.

The stock of this GPU manufacturer was priced at US$228.32, up 0.87 percent, at 10:30 am ET on August 30. The NVDA stock soared 72.62 percent YTD. It has a market cap of US$570.29 billion, a P/E ratio of 81.33, a forward P/E one year of 63.41, and an EPS of US$2.80.

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NVIDIA’s 52-week highest and lowest stock prices were US$227.22 and US$115.67, respectively. Its share volume on August 27 was 30,472,220.

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Broadcom Inc. (NASDAQ: AVGO)


Broadcom is a leading American semiconductor manufacturing company based in San Jose, California. It manufactures and sells various semiconductor chips and software products for wireless, broadband, networking, and other related markets.

The company’s Q2 FY 2021 revenue was US$6.61 billion, up 15 percent from the year-ago quarter. Its GAAP net income was US$1.49 billion. On a GAAP basis, the diluted earnings per share were US$3.30 in the second quarter of 2021. Its adjusted EBITDA came in at US$3.96 billion.

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Broadcom has a market cap of US$207.43 billion, a P/E ratio of 47.12, a forward P/E one year of 20.61, and an EPS of US$10.73.

The AVGO stocks rallied ahead of its Q3 earnings on September 2. The stock was priced at US$504.71, up 1.77 percent from the previous close at 10:52 am ET on August 30. The Broadcom stock jumped 16.63 percent YTD.

Broadcom’s 52-week highest and lowest stock prices were US$496.44 and US$337.70, respectively. Its share volume on August 27 was 1,646,077.

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Meta Materials Inc. (NASDAQ: MMAT)


Meta Materials Inc. is a Canadian company and manufactures smart materials and photonics. It develops high-performance nanomaterials used for various applications.

The stock of this Dartmouth-based firm has been attracting investors’ attention after it agreed to acquire Nanotech Security for C$90.8 million.

Also Read: Seven electronic stocks to keep an eye on post chip shortage

The total revenue of the company soared 197 percent YoY to US$0.624 million in Q2 of fiscal 2021, compared to US$0.21 million in the year-ago quarter. Its gross profit was US$0.623 million.

The company reported a net loss of US$5.1 million, or a loss of US$0.03 per share, compared to a net loss of US$1.81 million, or a loss of US$0.01 apiece in Q2, 2020.

The company has a market cap of US$1.43 billion. Its share volume was 40,050,770 on August 27.

The MMAT stock was up 15.98 percent to US$4.7899 at 11:07 am ET on August 30, compared to its previous close. The stock of Meta Materials ticked up 243.9 percent YTD.

The stock’s 52-week highest and lowest prices were US$10.88 and US$0.21.

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Bottom Line


Demand for semiconductors is rapidly increasing with the boom in the EV market. US President Joe Biden's plan to increase the zero-emission vehicles by at least 50 percent of all new automobiles sold in the US by 2030 also has accelerated the demand for chips used in EVs.

Besides, there has also been a growing demand from the consumer electronics industries. But due to a current chip shortage, most companies have been struggling to meet their orders. Analysts expect the situation to improve by next year.

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