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4 Solid Semiconductor Stocks to Buy on Accelerating Sales
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The semiconductor industry that suffered in 2023 is making a steady recovery this year. The Semiconductor Industry Association (SIA) said on Aug 5 that global semiconductor sales totaled $50.0 billion, up 1.7% month over month from May’s total of $49.1 billion.
Semiconductor Sales Rebound on Higher Demand
The report also mentioned that sales totaled $149.9 billion in the second quarter, reflecting an 18.3% year-over-year jump and a 6.5% rise from the first quarter.
Regionally, year-over-year semiconductor sales rose 42.8% in the Americas, followed by 21,6% in China and 12.7% in Asia Pacific/All Other regions.
The ongoing optimism surrounding artificial intelligence (AI) has been driving demand for semiconductors, which is boosting sales. A large number of companies have been aggressively spending on AI systems in their bid to leverage AI as part of their digital transformation efforts.
Also, generative AI is becoming the focus of several tech giants, who have been investing more in its development. This has been creating massive demand for generative AI chipsets.
According to the World Semiconductor Trade Statistics (WSTS), the semiconductor industry is projected to grow 16% in 2024, up from its previous forecast of 13.1%. Global semiconductor sales are projected to hit $611.2 billion this year.
Sales in the Americas are anticipated to lead with an estimated jump of more than 25% this year. Looking ahead to 2025, WSTS expects global sales to grow by 12.5%, reaching a total of $687.4 billion.
Our Choices
Given the promising future, it would be wise to invest in semiconductor stocks like Taiwan Semiconductor Manufacturing Company Limited (TSM - Free Report) , RF Industries, Ltd. (RFIL - Free Report) , Micron Technology, Inc. (MU - Free Report) and Applied Materials, Inc. (AMAT - Free Report) which investors can gain from in the near term.
Taiwan Semiconductor Manufacturing Company Limited is the world's largest dedicated integrated circuit foundry. As a foundry, TSM manufactures ICs for its customers based on their proprietary IC designs using its advanced production processes. Taiwan Semiconductor Manufacturing Company Limited’s goal is to establish itself as one of the world's leading semiconductor companies by building upon the strengths that have made it the leading IC foundry in the world.
Taiwan Semiconductor Manufacturing Company Limited’s expected earnings growth rate for the current year is 23%. The Zacks Consensus Estimate for current-year earnings has improved 4.3% over the past 60 days. TSM presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
RF Industries, Ltd. is engaged in the design, manufacture and distribution of coaxial connectors used in radio communications applications as well as in computers, test instruments, PC LANS and antenna devices.
RF Industries’ expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the past 60 days. RFIL presently carries a Zacks Rank #2.
Micron Technology, Inc. has established itself as one of the leading worldwide providers of semiconductor memory solutions. Through global brands, namely Micron, Crucial and Ballistix, MU manufactures and markets high-performance memory and storage technologies, including Dynamic Random Access Memory, NAND flash memory, NOR Flash, 3D XPoint memory and other technologies. Micron Technology’s solutions are used in leading-edge computing, consumer, networking and mobile products.
Micron Technology’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 26.1% over the last 30 days. MU currently carries a Zacks Rank #2.
Applied Materials, Inc. is one of the world's largest suppliers of equipment for the fabrication of semiconductors, flat panel liquid crystal displays, and solar photovoltaic cells and modules. AMAT also offers deployment and support services related to the equipment supplied.
Applied Materials’ expected earnings growth rate for the current year is 3.5%. The Zacks Consensus Estimate for current-year earnings has improved 3.6% over the past 90 days. AMAT presently carries a Zacks Rank #2.
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4 Solid Semiconductor Stocks to Buy on Accelerating Sales
The semiconductor industry that suffered in 2023 is making a steady recovery this year. The Semiconductor Industry Association (SIA) said on Aug 5 that global semiconductor sales totaled $50.0 billion, up 1.7% month over month from May’s total of $49.1 billion.
Semiconductor Sales Rebound on Higher Demand
The report also mentioned that sales totaled $149.9 billion in the second quarter, reflecting an 18.3% year-over-year jump and a 6.5% rise from the first quarter.
Regionally, year-over-year semiconductor sales rose 42.8% in the Americas, followed by 21,6% in China and 12.7% in Asia Pacific/All Other regions.
The ongoing optimism surrounding artificial intelligence (AI) has been driving demand for semiconductors, which is boosting sales. A large number of companies have been aggressively spending on AI systems in their bid to leverage AI as part of their digital transformation efforts.
Also, generative AI is becoming the focus of several tech giants, who have been investing more in its development. This has been creating massive demand for generative AI chipsets.
According to the World Semiconductor Trade Statistics (WSTS), the semiconductor industry is projected to grow 16% in 2024, up from its previous forecast of 13.1%. Global semiconductor sales are projected to hit $611.2 billion this year.
Sales in the Americas are anticipated to lead with an estimated jump of more than 25% this year. Looking ahead to 2025, WSTS expects global sales to grow by 12.5%, reaching a total of $687.4 billion.
Our Choices
Given the promising future, it would be wise to invest in semiconductor stocks like Taiwan Semiconductor Manufacturing Company Limited (TSM - Free Report) , RF Industries, Ltd. (RFIL - Free Report) , Micron Technology, Inc. (MU - Free Report) and Applied Materials, Inc. (AMAT - Free Report) which investors can gain from in the near term.
Taiwan Semiconductor Manufacturing Company Limited is the world's largest dedicated integrated circuit foundry. As a foundry, TSM manufactures ICs for its customers based on their proprietary IC designs using its advanced production processes. Taiwan Semiconductor Manufacturing Company Limited’s goal is to establish itself as one of the world's leading semiconductor companies by building upon the strengths that have made it the leading IC foundry in the world.
Taiwan Semiconductor Manufacturing Company Limited’s expected earnings growth rate for the current year is 23%. The Zacks Consensus Estimate for current-year earnings has improved 4.3% over the past 60 days. TSM presently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
RF Industries, Ltd. is engaged in the design, manufacture and distribution of coaxial connectors used in radio communications applications as well as in computers, test instruments, PC LANS and antenna devices.
RF Industries’ expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved more than 100% over the past 60 days. RFIL presently carries a Zacks Rank #2.
Micron Technology, Inc. has established itself as one of the leading worldwide providers of semiconductor memory solutions. Through global brands, namely Micron, Crucial and Ballistix, MU manufactures and markets high-performance memory and storage technologies, including Dynamic Random Access Memory, NAND flash memory, NOR Flash, 3D XPoint memory and other technologies. Micron Technology’s solutions are used in leading-edge computing, consumer, networking and mobile products.
Micron Technology’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 26.1% over the last 30 days. MU currently carries a Zacks Rank #2.
Applied Materials, Inc. is one of the world's largest suppliers of equipment for the fabrication of semiconductors, flat panel liquid crystal displays, and solar photovoltaic cells and modules. AMAT also offers deployment and support services related to the equipment supplied.
Applied Materials’ expected earnings growth rate for the current year is 3.5%. The Zacks Consensus Estimate for current-year earnings has improved 3.6% over the past 90 days. AMAT presently carries a Zacks Rank #2.