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3 Highly Ranked Chip Stocks to Buy Outside of Nvidia (NVDA)
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When it comes to semiconductor stocks, Nvidia (NVDA - Free Report) ) continues to garnish much attention as the company’s earnings potential has only increased with its popular artificial intelligence (AI) chips.
Nvidia does boast a Zacks Rank #1 (Strong Buy) and investors may be looking for other semiconductor companies that are compelling at the moment.
For those looking for options outside of the Nvidia bandwagon, let’s take a look at three alternative chip stocks that also covet a Zacks Rank #1 (Strong Buy).
The strong performance of Allegro MicroSystems stock has continued into 2023 and the producer of sensor-integrated chips is worth a look.
Allegro also produces application-specific analog power ICs with shares of ALGM up +42% this year to easily top the S&P 500’s +15% and the Nasdaq’s +30%.
More impressive, Allegro stock has soared +104% over the last year to largely outperform the broader indexes and almost double the Electronics-Semiconductors Markets' +54%.
Image Source: Zacks Investment Research
Allegro’s strong performance has been largely attributed to its very respectable growth since going public in 2020.
In Allegro's current fiscal 2024 earnings are projected to rise 9% and jump another 10% in FY25 at $1.54 per share. Plus, earnings estimate revisions have trended higher over the last two months.
Furthermore, fiscal 2025 projections would represent a very stellar 541% EPS growth over the last five years with 2021 earnings at $0.24 per share.
Israel-based Nova Ltd is also worthy of investors’ consideration among semiconductor stocks. Nova is a provider of metrology solutions for advanced process control in semiconductor manufacturing.
Nova stock has continued to rise following a record year for annual revenue at $571 million and earnings at $5.07 per share. This has been a major catalyst for Nova’s stock rising +39% this year to outperform the broader indexes.
Following the very tough-to-compete-against year, Nova’s earnings are projected to dip -17% in fiscal 2023 but rebound and climb 21% in FY24 at $5.07 per share which would be back towards record levels. Even better, earnings estimates are nicely up over the last 60 days.
Last but not least, Rambus is another semiconductor stock sporting a Zacks Rank #1 (Strong Buy) that investors will want to pay attention to.
Rambus has a unique niche with the company creating innovative hardware and software technologies, driving advancements from the data center to the mobile edge. Along with its chips, Rambus’ customizable IP cores, architecture licenses, tools, software, and services help improve the competitive advantage for customers.
Year to date, Rambus stock has soared +66% to easily top the S&P 500, Nasdaq, and even the Electronics-Semiconductors Markets' +46%.
Image Source: Zacks Investment Research
Rambus earnings are expected to rise 2% this year and soar another 24% in FY24 at $2.21 per share. Plus, FY24 EPS projections would represent 114% growth over the last five years with 2020 earnings at $1.03 per share.
It’s noteworthy that earnings estimates have modestly risen over the last 60 days offering further support to this year’s impressive rally and the company’s anticipated growth.
Image Source: Zacks Investment Research
Bottom Line
These semiconductor stocks continue to look attractive as their operating environment stabilizes in correlation with easing inflation. Positive sentiment from Nvidia’s brightened outlook and incredible rally has been beneficial to Allegro MicroSystems, Nova Ltd, and Rambus stock as well. To that note, it still appears to be a good time to buy.
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3 Highly Ranked Chip Stocks to Buy Outside of Nvidia (NVDA)
When it comes to semiconductor stocks, Nvidia (NVDA - Free Report) ) continues to garnish much attention as the company’s earnings potential has only increased with its popular artificial intelligence (AI) chips.
Nvidia does boast a Zacks Rank #1 (Strong Buy) and investors may be looking for other semiconductor companies that are compelling at the moment.
For those looking for options outside of the Nvidia bandwagon, let’s take a look at three alternative chip stocks that also covet a Zacks Rank #1 (Strong Buy).
Allegro MicroSystems (ALGM - Free Report) )
The strong performance of Allegro MicroSystems stock has continued into 2023 and the producer of sensor-integrated chips is worth a look.
Allegro also produces application-specific analog power ICs with shares of ALGM up +42% this year to easily top the S&P 500’s +15% and the Nasdaq’s +30%.
More impressive, Allegro stock has soared +104% over the last year to largely outperform the broader indexes and almost double the Electronics-Semiconductors Markets' +54%.
Image Source: Zacks Investment Research
Allegro’s strong performance has been largely attributed to its very respectable growth since going public in 2020.
In Allegro's current fiscal 2024 earnings are projected to rise 9% and jump another 10% in FY25 at $1.54 per share. Plus, earnings estimate revisions have trended higher over the last two months.
Furthermore, fiscal 2025 projections would represent a very stellar 541% EPS growth over the last five years with 2021 earnings at $0.24 per share.
Image Source: Zacks Investment Research
Nova Ltd (NVMI - Free Report) )
Israel-based Nova Ltd is also worthy of investors’ consideration among semiconductor stocks. Nova is a provider of metrology solutions for advanced process control in semiconductor manufacturing.
Nova stock has continued to rise following a record year for annual revenue at $571 million and earnings at $5.07 per share. This has been a major catalyst for Nova’s stock rising +39% this year to outperform the broader indexes.
Following the very tough-to-compete-against year, Nova’s earnings are projected to dip -17% in fiscal 2023 but rebound and climb 21% in FY24 at $5.07 per share which would be back towards record levels. Even better, earnings estimates are nicely up over the last 60 days.
Image Source: Zacks Investment Research
Rambus (RMBS - Free Report) )
Last but not least, Rambus is another semiconductor stock sporting a Zacks Rank #1 (Strong Buy) that investors will want to pay attention to.
Rambus has a unique niche with the company creating innovative hardware and software technologies, driving advancements from the data center to the mobile edge. Along with its chips, Rambus’ customizable IP cores, architecture licenses, tools, software, and services help improve the competitive advantage for customers.
Year to date, Rambus stock has soared +66% to easily top the S&P 500, Nasdaq, and even the Electronics-Semiconductors Markets' +46%.
Image Source: Zacks Investment Research
Rambus earnings are expected to rise 2% this year and soar another 24% in FY24 at $2.21 per share. Plus, FY24 EPS projections would represent 114% growth over the last five years with 2020 earnings at $1.03 per share.
It’s noteworthy that earnings estimates have modestly risen over the last 60 days offering further support to this year’s impressive rally and the company’s anticipated growth.
Image Source: Zacks Investment Research
Bottom Line
These semiconductor stocks continue to look attractive as their operating environment stabilizes in correlation with easing inflation. Positive sentiment from Nvidia’s brightened outlook and incredible rally has been beneficial to Allegro MicroSystems, Nova Ltd, and Rambus stock as well. To that note, it still appears to be a good time to buy.