The semiconductor sector plays a crucial role in the global tech industry, providing essential components for a wide range of electronic products. From computing and mobile devices to advanced automotive systems and smart appliances, chips are at the heart of it all. The industry is a hotbed of innovation, constantly pushing the boundaries of chip performance and efficiency. It encompasses a diverse array of companies, including chip manufacturers, design firms, and suppliers of critical semiconductor production equipment. Investors are keen on semiconductor stocks, considering the industry’s potential for robust growth driven by the relentless demand for advanced electronics and new tech frontiers like 5G, AI, and IoT. Moreover, the sector’s expansion into emerging markets and technologies offers promising growth avenues. However, the semiconductor industry also faces unique challenges. It is cyclically sensitive, with demand fluctuations impacting profitability, and requires heavy capital expenditure for R&D and production facilities, influencing financial outcomes as well.
Semiconductor Stocks to Consider Now
Advanced Micro Devices (AMD Stock)
First up is Advanced Micro Devices, Inc. (AMD), an American multinational semiconductor company known for developing computer processors and related technologies. AMD specializes in CPUs and GPUs for personal computing, gaming, and data centers. The company announced the scheduled release of its Q4 2023 and full-year 2023 financial results on Tuesday, January 30, 2024, following the close of the U.S. stock market. In the previous quarter, AMD surpassed expectations with an EPS of $0.72 and revenue of $5.8 billion. Over the last month, AMD stock has risen by 18.10%. As of Thursday’s mid-morning trading, Advanced Micro Devices stock is trading 2.36% higher at $163.94 per share.
Nvidia Corporation (NVDA Stock)
Next is NVIDIA Corporation (NVDA), a leading technology company that has made a significant impact in the semiconductor industry with its graphics processing units (GPUs) and system-on-chip units (SoCs) for mobile computing and automotive markets. The company is also prominent in artificial intelligence hardware and software, with professional GPUs playing a vital role in various industries, including architecture, engineering, and scientific research. NVIDIA recently unveiled new GeForce RTX™ SUPER desktop GPUs, AI laptops from top manufacturers, and RTX™-accelerated AI software and tools for developers and consumers, aimed at enhancing generative AI performance on PCs and workstations. Over the past month, NVIDIA stock has surged by 14.47%. During Thursday’s mid-morning trading session, shares of NVDA stock have risen by 2.27%, currently trading at $573.26 per share.
