NVDA to AMD: 5 top semiconductor stocks to explore amid supply woes

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NVDA to AMD: 5 top semiconductor stocks to explore amid supply woes

 NVDA to AMD: 5 top semiconductor stocks to explore amid supply woes
Image source: © 4designersart | Megapixl.com

Highlights:

  • NVIDIA Corporation (NASDAQ: NVDA) revenue jumped 46% YoY in Q1, FY23.
  • Intel Corporation (NASDAQ: INTC) will report its second quarter fiscal 2022 financial results on July 28.
  • Advanced Micro Devices, Inc. (NASDAQ: AMD) revenue soared 71% YoY in Q1, FY22.

The semiconductor industry is crucial to almost every sector ranging from technology to EVs.

However, the semiconductor sector has faced several hurdles in the past two years amid global chip shortages due to the Covid-19 pandemic. The demand for semiconductors also increased manifold in recent years, and companies have struggled to meet that demand.

Talking about the supply hurdles, Intel CEO Pat Gelsinger said that he expects the global chip shortage to remain till 2024 due to the insufficient availability of key chip manufacturing equipment.

Here, we explore some of the top semiconductor stocks for Q3:

NVIDIA Corporation (NASDAQ: NVDA)

Nvidia is one of the leading technology firms that specializes in manufacturing GPUs for gaming and other professional markets. It is based in Santa Clara, California.

The shares of the company traded at US$165.58 at 10:58 am ET on July 18, up 5.05% from their closing price of July 15. Its stock value decreased by 47.67% YTD.

The firm has a market cap of US$413.22 billion, a P/E ratio of 44.39, and a forward one-year P/E ratio of 35.10. Its EPS is US$3.73.

The 52-week highest and lowest stock prices were US$346.47 and US$140.55, respectively. Its trading volume was 38,593,550 on July 15.

The company reported a revenue of US$8.29 billion in Q1, FY23, up 46% YoY. Its GAAP net income was US$1.61 billion, or US$0.64 per diluted share, against an income of US$1.91 billion, or US$0.76 per diluted share in Q1, FY22.

Top semiconductor stocks to explore amid global supply hurdlesSource: ©2022 Kalkine Media®

Intel Corporation (NASDAQ: INTC)

Intel is a chip manufacturing firm that engages in designing products and technologies related to cloud computing, data center, IoT, etc. It is based in Santa Clara, California.

The stock of the company traded at US$39.055 at 11:01 am ET on July 18, up 1.13% from its previous closing price. The INTC stock fell 27.42% YTD.

The market cap of the company is US$159.63 billion, the P/E ratio is 6.47, and the forward one-year P/E ratio is 11.13. Its EPS is US$6.02.

The stock touched the highest price of US$56.93 and the lowest price of US$35.54 in the last 52 weeks. Its share volume on July 15 was 32,892,290.

The company will report its second quarter fiscal 2022 financial results on July 28, after the market close.

Meanwhile, in the first quarter of fiscal 2022, its GAAP revenue decreased by 7% YoY to US$18.4 billion, and its net income was US$8.1 billion, or US$1.98 per diluted share.

Qualcomm Incorporated (NASDAQ: QCOM)

Qualcomm is a semiconductor manufacturing firm that also provides software and other related services for wireless technology. The company is based in San Diego, California.

The shares of the company traded at US$144.48 at 11:06 am ET on July 18, up 0.08% from their closing price of July 15. Its stock value declined 22.47% YTD.

The firm has a market cap of US$161.96 billion, a P/E ratio of 14.72, and a forward one-year P/E ratio of 13.07. Its EPS is US$9.77.

The 52-week highest and lowest stock prices were US$193.58 and US$118.22, respectively. Its trading volume was 11,880,450 on July 15.

The company will release its third quarter fiscal 2022 financial results on July 27, after the market close.

Meanwhile, in the second quarter of fiscal 2022, its revenue soared 41% YoY to US$11.16 billion, and its net income was up 67% YoY to US$2.93 billion, or US$2.57 per diluted share.

Micron Technology, Inc. (NASDAQ: MU)

Micron Technology is an American chip maker that produces computer memory and computer data storage like dynamic random-access memory, flash memory, and USB flash drives. It is based in Boise, Idaho.

The stock of the company traded at US$61.58 at 11:12 am ET on July 18, up 0.08% from its previous closing price. The MU stock plunged 35.74% YTD.

The market cap of the company is US$68.00 billion, the P/E ratio is 7.03, and the forward one-year P/E ratio is 7.58. Its EPS is US$8.77.

The stock touched the highest price of US$98.45 and the lowest price of US$51.40 in the last 52 weeks. Its share volume on July 15 was 20,317,790.

The company's revenue was US$8.64 billion in Q3, FY22, as compared to US$7.42 billion in the year-ago quarter. Its net income was US$2.62 billion, or US$2.34 per diluted share, against an income of US$1.73 billion, or US$1.52 per diluted share in Q3, FY21.

Top semiconductor stocks: NVDA, INTC, QCOM, MU, AMDSource: ©Kalkine Media®; © CristianIS via Canva.com

Advanced Micro Devices, Inc. (NASDAQ: AMD)

Advanced Micro Devices is one of the leading multinational semiconductor firms that specializes in developing computer processors and other related technologies for businesses as well as consumers. It is based in Santa Clara, California.

The shares of the company traded at US$83.45 at 11:17 am ET on July 18, up 2.88% from their closing price of July 15. Its stock value slumped 46.01% YTD.

The firm has a market cap of US$135.79 billion, a P/E ratio of 30.99, and a forward one-year P/E ratio of 20.28. Its EPS is US$2.69.

The 52-week highest and lowest stock prices were US$164.46 and US$71.60, respectively. Its trading volume was 76,050,600 on July 15.

The company will report its second quarter fiscal 2022 financial results on August 2, after the closing bell.

Meanwhile, in the first quarter of fiscal 2022, its revenue soared 71% YoY to US$5.9 billion. Its net income came in at US$786 million, or US$0.56 per share, against an income of US$555 million, or US$0.45 per diluted share, in Q1, FY21.

Bottom line:

Even though the supply disruptions and other macroeconomic factors like soaring inflation and the Fed's aggressive monetary policies to tame it, have hurt the sector, experts anticipate that the sector may grow in the coming years. The increasing demand from sectors like online gaming, cloud computing, AI, communication, EV, and other related sectors could bolster gains in the sector.

Meanwhile, Semiconductor Industry Association said that the US accounted for around half of the US$440 billion in global semiconductor investments in 2020.

The Dow Jones US Semiconductors Index fell 13.80% over the past 12 months, while decreasing 33.03% YTD, making it one of the worst performing sectors this year so far. Hence, investors should closely evaluate the companies before spending on the stocks.

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