The past year has been good for semiconductor stocks in the stock market. Recently, there were some concerns about the over-saturation of semiconductor chips in the future due to increased production now. However, the fact remains that the demand is at an all-time high and many industries are affected by the shortage now. The financial updates of some of the top semiconductor stocks recently support this claim. Across the board, semiconductor companies have been showing positive results.
The concern of overproduction of semiconductor chips may well be an overstatement for now. What we need to realize is chips are getting smaller and more difficult to manufacture. Hence, many of the smaller chipmakers end up outsourcing their production to third-party foundries. A fun fact to know is, it appears only Taiwan Semiconductor Manufacturing Co (NYSE: TSM), Intel Corporation (NASDAQ: INTC), and Samsung Electronics are able to mass-produce chips that are smaller than 10nm. In fact, TSM is already on track to produce 3nm chips in the second half of 2022. So, while the industry is booming, are you keen on some of the top semiconductor stocks in the stock market today?Top Semiconductor Stocks To Buy [Or Avoid] Now
- QUALCOMM, Inc (NASDAQ: QCOM)
- Xilinx, Inc (NASDAQ: XLNX)
- STMicroelectronics NV (NYSE: STM)
- Advanced Micro Devices, Inc (NASDAQ: AMD)
First up, we have one of the top semiconductor companies today, QUALCOMM. The company engages in the development and commercialization of foundational technologies found in mobile devices, and other wireless products. It is best known for designing the Snapdragon chips that power most Android phones. QCOM stock has been up by over 40% over the past year.
We could attribute this recent movement to its impressive third-quarter earnings report. In detail, Qualcomm reported revenue of $8.06 billion, representing an increase of 65% year-over-year. Also, its adjusted net income came in at $2.2 billion, up by a whopping 124%. All this is largely driven by the rapid adoption of new 5G devices and the sales of smartphone chips.
Qualcomm also predicts a more promising demand for 5G services moving forward. It expects the 5G handset shipments in 2021 to be between 450 million and 500 million. While most of the world hasn’t had the luxury of experiencing 5G services, surely consumers are willing to give it a try once it is made available. Given the focus on 5G technology by the company, it would be well-positioned to reap the benefits once 5G becomes more readily available. Now, would you consider QCOM stock a top semiconductor stock to watch today?
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Following that, we have Xilinx. The company engages in the design and development of programmable devices and associated technologies. Through its highly flexible programmable silicon which is enabled by a suite of advanced software and tools, it drives rapid innovation across a wide span of industries and technologies. The company stock has risen over 30% within the past year.
Earlier this month, Xilinx introduced the Versal™ HBM adaptive compute acceleration platform. The Versal HBM series allows the convergence of fast memory, secure connectivity, and adaptable compute in a single platform. With this, it will be able to keep up with the higher memory needs of most memory-bound applications for data centers, wired networking, and aerospace and defense. So, its customers will obtain a solution that delivers significantly higher performance and reduced system power for data center and network operators.
Furthermore, the company also posted record revenue for its fiscal first-quarter earnings. Its revenue came in at a record $879 million, up by 21% year-over-year. Meanwhile, its GAAP net income was $206 million, representing a whopping 219% increase. This strong financial showing is a testament to the company’s strength across its diversified end markets. Despite the challenges in the supply chain, the demand for its products remains robust. With that in mind, is XLNX stock a buy for you?
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STMicroelectronics (STM) is a Switzerland-based semiconductor company. It designs, develops, manufactures, and markets a range of products, including discrete and standard commodity components, and application-specific integrated circuits (ASICs). While STM stock has been trading sideways since the start of the year, its recent price action has driven up by over 47% over the past year. Would there be reasons to believe it will continue to rise? Let us see some of its recent developments.
Well, the company recently announced it has manufactured the first 200mm Silicon-Carbide bulk wafers for prototyping next-generation power devices. This is a massive improvement in the capacity build-up for its customer programs in the automotive and industrial sectors. Besides that, it would also consolidate STM’s lead in disruptive semiconductor technology that leverages smaller, lighter, and more efficient power electronics at a lesser cost.
On top of that, it also reported a fantastic second-quarter financial update. On a year-over-year basis, its revenue increased by 43.4% at $2.99 billion. Out of which, every product group recorded higher net sales except for the RF Communications sub-group. Meanwhile, its net income skyrocketed to $412 million, up by 357.2%. Safe to say, the high global demand for its products currently is the strongest driving force for the company. So, are you convinced by the future of STM stock? If so, would you add it to your watchlist?Advanced Micro Devices, Inc
Let us sum up the list with one of the leading semiconductor companies in Advanced Micro Devices (AMD). In summary, the company develops computer processors and technologies for the business and consumer markets. Consumers and businesses alike globally rely on its technology to improve efficacy and productivity. AMD stock has been flirting to break its all-time high again.
On Wednesday, AMD announced yet another strong quarterly financial report. Its second-quarter revenue was $3.85 billion, almost doubling that of the prior year’s quarter. Not only that, its net income was $710 million, representing a hike of 352% year-over-year. With the rapid growth of the company compared to the market, it is now feasible for AMD to expect its annual revenue to grow by approximately 60% year-over-year. Strong demand across all of its businesses and increasing customer preference for its products have been the driving force for the company.
Yet again, AMD stepped up its game by introducing the AMD Radeon™ RX 6600 XT graphics card. This is designed to deliver the ultimate high-framerate, high-fidelity, and highly responsive 1080 gaming experience. Given the increasing demands of modern games, it will support these games and deliver high-quality gaming experiences. With all these in mind, would you be joining the AMD stock bandwagon?