The semiconductor sector is a linchpin of the global tech industry, providing crucial components for a wide range of electronic products. These chips are indispensable in everything from computing and mobile devices to advanced automotive systems and smart appliances. The industry is on the vanguard of innovation, constantly pushing the boundaries of chip performance and efficiency. It encompasses a diverse array of companies, including chip manufacturers, design firms, and those supplying critical semiconductor production equipment.
Investors eyeing semiconductor stocks focus on the sector’s potential for robust growth, driven by the ceaseless demand for advanced electronics and new tech frontiers such as 5G, AI, and IoT. Moreover, the industry’s expansion into emerging markets and technologies offers promising growth avenues. However, the semiconductor industry faces unique challenges. It is cyclically sensitive, with demand fluctuations impacting profitability. Additionally, it demands high capital expenditure for R&D and production facilities, influencing financial outcomes.
For those investing in semiconductor stocks, a deep dive into industry dynamics, supply chain complexities, and technology evolution is imperative. These stocks present opportunities for potentially significant gains, but they also carry the risk of market volatility, global economic shifts, and policy changes. With that being said, let’s look at two semiconductor stocks to watch in the stock market today.
Surveying Semiconductor Stocks of Interest Today
Insight into Advanced Micro Devices (AMD Stock)
Foremost, Advanced Micro Devices, Inc. (AMD) is an American multinational semiconductor company. The company is renowned for its specialization in developing computer processors and related technologies for business and consumer markets. AMD is known for its CPUs and GPUs, catering to a wide range of applications from personal computing to gaming and data centers.
Recently, AMD announced the scheduled release of its fourth quarter and full year 2023 financial results. Notably, the company is set to report its Q4 2023 and full-year 2023 financial results on Tuesday, January 30, 2024, following the close of the U.S. stock market. Last quarter, AMD surpassed expectations by achieving an EPS of $0.72 with revenue of $5.8 billion.
In the past month of trading, AMD stock has surged by 18.10%. Meanwhile, during Thursday’s mid-morning trading session, Advanced Micro Devices stock is trading 2.36% higher at $163.94 a share.
Evaluation of Nvidia Corporation (NVDA Stock)
Next, NVIDIA Corporation (NVDA) is a leading technology company. Established as a significant force in the semiconductor industry, NVIDIA is well known for its graphics processing units (GPUs) and system-on-chip units (SoCs) for mobile computing and automotive markets. Additionally, NVIDIA’s expertise also extends to artificial intelligence hardware and software, with its professional GPUs being integral in various industries including architecture, engineering, and scientific research.
Earlier this month, NVIDIA announced new GeForce RTX™ SUPER desktop GPUs, AI laptops from top manufacturers, and RTX™-accelerated AI software and tools for developers and consumers, aiming to enhance generative AI performance on PCs and workstations. NVIDIA is also introducing tools such as NVIDIA TensorRT™ for Stable Diffusion XL and NVIDIA RTX Remix for AI texture tools, among others.
In the past month of trading, NVIDIA stock has climbed by 14.47%. Meanwhile, during Thursday’s mid-morning trading session, shares of NVDA stock have jumped by 2.27%, currently trading at $573.26 a share.
