With chipmakers in the spotlight, here’s a peek at five of them

Highlights

  • Advanced Micro Devices, Inc. (NASDAQ: AMD) has a P/E ratio of 37.96 and a forward P/E one-year of 45.98. The stock raked in 16.06% YTD. 
  • NVIDIA Corporation (NASDAQ: NVDA) has a forward P/E one year ratio of 61.46. The stock gained 72.21% YTD. 
  • The stock of Meta Materials Inc. (NASDAQ: MMAT), a smart materials and photonics company, increased by 271.07% YTD. 

Many industries are affected due to the ongoing shortage of semiconductors. The shortage has forced many automobiles and electronics companies to halt or slow down production in the US. Auto giants like General Motors, Toyota, etc., have reduced their production.

Meanwhile, the White House is exploring ways to address the problem. It plans to seek information from the industry leaders on how to secure and streamline the supply chain.

According to Reuters, the administration plans to seek comments from the affected industries about their inventory, demand and supply, orders, and customer segments. The goal is to ensure that the manufacturing units remain up and running.

Here we discuss five semiconductor companies that are in a positive price trajectory today.

Advanced Micro Devices, Inc. (NASDAQ: AMD)

AMD is a semiconductor company based in Santa Clara, California. Its products include x86 microprocessors (CPUs), graphics processing units (GPUs), System-on-Chip (SOC) products, accelerated processing units (APUs), and chipsets for the data center, PC, gaming, and embedded markets.

It earned a net income of US$710 million on revenue of US$3.85 million in the June quarter of 2021. The net income and revenue for the same quarter of 2020 were US$157 million and US$1.93 million, respectively. Its market capitalization is US$129 billion, with a P/E ratio of 37.96. The forward P/E for one year is 45.98.

The stock grew by 16.06% YTD. The stock was trading at US$106.56, up 2.09%, at 1:38 PM ET.

Also Read: What are ARCONA, DAI cryptos? All you need to know

 

Semiconductor companies struggle to meet demands amid various challenges

Source – pixabay

Also Read: How are pot stocks performing in US? Here’s a look at 5 of them

NVIDIA Corporation (NASDAQ: NVDA)

Nvidia is a designer of graphics processing units (GPU) used in computing platforms. Its chips are used in PCs for data centers, gaming, and automotive infotainment system. The company pays dividends to shareholders. The yield is 0.08%, with an annualized dividend of US$0.16.

Also Read: Crypto exchanges Binance vs Kraken: Where would you like to trade?

For the quarter ended Aug 1, 2021, the revenue was US$6.5 million compared to US$3.9 million in the same period the previous year. The net income was US$2.37 million compared to US$622 million in the same quarter of 2020. 

The Santa Clara, California-based technology company has a US$561.4-billion market capitalization, a P/E ratio of 80.06, and a forward P/E ratio for one year of 61.46.  

The stock gained 72.21% YTD. It is trading at US$224.7301, up 2.42%, at 1:48 PM ET.

Also Read: Check out these five real estate stocks with over 32% YTD return

Micron Technology, Inc. (NASDAQ: MU)

The company designs and manufactures memory and storage products such as DRAM for PCs and servers and makes NAND flash memory. The Boise, Idaho-based Micron technology’s products are used in PCs, smartphones, automotive, and various computer devices.

It has a presence in over 17 countries and has 13 manufacturing sites. It was ranked 135th among the Fortune 500 companies this year. This month, it was named in the list of 2021 Best Workplaces in Manufacturing and Production by Great place to Work and Fortune magazine.

Also Read: 5 airline stocks to watch as US opens travel for vaccinated visitors

The company earned revenue of US$7.4 million and net income of US$1.74 million for the quarter ended June 3, 2021. The revenue and net income for the corresponding quarter of 2020 were US$5.44 million and US$803 million, respectively. 

Its fourth-quarter results will be declared on September 28, 2021.

Its current market capitalization is US$83.6 billion, the P/E ratio is 20.46, and the forward P/E for one year is 13.09. 

ck fell 1.37% YTD. It is currently up 0.46% at US$74.31 at 2:01 pm ET.

Also Read: Pfizer-BioNTech covid vaccine for 5-11 years old shows positive results

Intel Corporation (NASDAQ: INTC)

Intel designs and manufactures microprocessors for PCs and data centers. The Santa Clara, California-based company has expanded into new areas like the Internet of Things, AI, and automotive.

Intel’s revenue for the quarter ended June 26, 2021, was US$19.63 million compared to US$19.73 million for the same period a year ago. The net income was US$5.06 million against US$5.1 million for the June quarter of 2020. 

Its market capitalization is US$220 billion, and its dividend yield is 2.63%. The P/E ratio is 12.04, the forward P/E ratio is 11.17, and the annualized dividend is US$1.39.

Intel stock rose 8.45% YTD. It is trading at US$54.085, up 1.09%, at 2:18 PM ET.

Also Read: Eleven upcoming IPOs to keep an eye on in September

Top semiconductor companies: NVIDIA Corporation (NVDA), Micron Technology, Inc. (MU), Intel Corporation (INTC), Meta Materials Inc. (MMAT)

Source - pixabay

Also Read: Why are COTI, LTX cryptos drawing attention today?

Meta Materials Inc. (NASDAQ: MMAT)

Meta Materials is a smart materials and photonics company that designs, develops, and manufactures sustainable and high functional materials such as nanofabrication and computational electromagnetics. It is based in Nova Scotia, Canada. 

Its revenue for the quarter ended June 30, 2021, was US$624.32 thousand compared to US$210.34 thousand in the same quarter a year ago. The net loss was US$(5.18) million compared to US$(1.82) million for the June quarter of 2020. 

MMAT has a market capitalization of US$1.43 billion.

The stock increased by 271.07% YTD. It is trading at US$5.245, up 2.24% at 2:34 PM ET.

Also Read: ONTX stock dives 16%, DVAX stock in green after clinical data

Bottomline

Semiconductor chips are needed in various industries like electronics and EV companies. Global chip supplies have been hit due to several factors, including the pandemic, logistics, and various geopolitical factors. For instance, Taiwan, one of the major global chip suppliers, has been under pressure due to its tense relations with Beijing. However, the demand for chips augurs well for the semiconductor industry as it moves to streamline supplies. However, investors must evaluate the companies carefully before investing in stocks.

Comment


Disclaimer