The semiconductor industry sits at the heart of global technology, powering a range of devices from smartphones and computers to industrial machinery. Companies in this sector design and produce semiconductor chips, crucial components for various electronic gadgets. The market is known for its rapid technological progress and substantial research and development investments.
Investing in semiconductor stocks presents an opportunity for significant returns, as the demand for electronic devices and advanced technologies continues to surge. However, these stocks are prone to volatility, reflecting the swift changes in technology and competitive market environment. While investors can reap benefits from the industry’s growth potential, they must also brace for fluctuations originating from supply chain disruptions, global economic conditions, and technological advancements.
One drawback of investing in semiconductor stocks is their susceptibility to global supply chain interruptions and technological shifts. Companies must continually innovate to maintain their edge, a process that often carries substantial financial risks. Nevertheless, the semiconductor sector remains a crucial and potentially profitable investment arena, particularly for those who anticipate the continuous expansion of technology-driven markets. If this piques your interest in the semiconductor sector, here are three key semiconductor stocks to keep an eye on.
Best or Worst Semiconductor Stocks to Consider Today
Advanced Micro Devices (AMD Stock)
First up, Advanced Micro Devices, Inc. (AMD) is a prominent semiconductor firm specializing in the development of computer processors and related technologies for both business and consumer markets. The company is renowned for its Ryzen and Epyc series of processors. Additionally, AMD competes in the CPU and GPU markets, providing products that power a wide array of computing devices, from desktops to servers.
In recent news, Advanced Micro Devices Inc. asserted its dominance in high-performance computing (HPC) at ISC High Performance 2024. AMD now fuels 156 of the Top500 supercomputers, representing a 29% increase from the previous year. The Frontier supercomputer, located at Oak Ridge National Lab and leveraging AMD EPYC CPUs and AMD Instinct GPUs, retains the top spot as the world’s fastest, delivering a stellar 1.2 exaflops. Moreover, AMD’s new Alveo V80 compute accelerator card, doubling the HBM bandwidth for HPC and compute-intensive tasks, is currently available for shipping.
Year-to-date, AMD stock has surged by a notable 19.88%. Presently, in Monday’s late morning trading session, Advanced Micro Devices stock is up by 1.07%, priced at $166.22 per share.
Texas Instruments (TXN Stock)
Next, Texas Instruments Incorporated (TXN) is a global semiconductor design and manufacturing company. Specializing in analog ICs and embedded processors, the firm plays a pivotal role by producing chips essential for a wide range of products, from mobile devices to industrial systems.
Recently, Texas Instruments disclosed better-than-anticipated Q1 2024 financial results. The company reported earnings of $1.20 per share in the first quarter of 2024, with revenues amounting to $3.66 billion. These figures surpassed analysts’ consensus estimates of $1.06 per share in earnings and $3.61 billion in revenue.
Year-to-date, Texas Instruments stock has climbed by 16.52%. Today, during Monday’s morning trading session, TXN stock is in the green, rising by 1.11% and trading at $197.18 per share.
NVIDIA Corporation (NVDA Stock)
Lastly, NVIDIA Corporation (NVDA) specializes in graphics processing units (GPUs) and boasts a significant presence in gaming, professional visualization, data centers, and automotive markets. Beyond hardware, NVIDIA actively engages in artificial intelligence research and development, offering cutting-edge solutions that fuel innovation across various tech sectors.
At the beginning of May, NVIDIA Corporation announced plans to hold a conference call on Wednesday, May 22, 2024, to discuss its first-quarter financial results for fiscal year 2025, up to April 28, 2024. The call will include a Q&A session, along with a written commentary from CFO Colette Kress, available post-announcement at 1:20 p.m. PT on the same day.
Year-to-date, NVIDIA stock has soared impressively by 96.43%. Furthermore, in today’s late morning trading, NVDA shares are on the rise, increasing by 2.26% and trading at $945.68 per share.