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Are These the Best Semiconductor Stocks To Buy This Week?
Semiconductor stocks were on the radar of many investors on the stock exchange last year. It's no secret that semiconductor chips are currently in high demand and chip manufacturers cannot keep up. Does that come as a surprise? Look around, the world we live in revolves around the semiconductor industry. The smart devices we use every day, home appliances, and even many modes of transport require semiconductor chips. And that's why smart investors always keep an eye on the industry.
When there is high demand, it is only natural that supply will follow suit. We're starting to see this as Taiwan Semiconductor Manufacturing Co. Ltd (NYSE: TSM) plans to invest $ 100 billion over the next three years to meet growing demand. Intel Corporation (NASDAQ: INTC) also announced a $ 20 billion plan to expand its advanced chip manufacturing capabilities. This is to confirm its position as the undisputed market leader in the semiconductor industry. With all of this dynamic in the semiconductor industry, here are four top semiconductor stocks you should know about in the stock market today.
Semiconductor Stocks To Watch Out For Now
Advanced Micro Devices, Inc.
AMD is a multinational semiconductor company based in Santa Clara, California. It develops computer processors and technologies for the business and consumer markets. The company has hundreds of millions of consumers and leading Fortune 500 companies who rely on its technology to improve efficiency and productivity. The company's stock is up over 50% over the past year.
On Thursday, AMD shares rose 5.55% in response to news that Alphabets (NASDAQ :GEL) subsidiary Google has selected AMD's latest data center chip to launch its new service. AMD and Google Cloud have announced T2D, the first in the new family of Tau Virtual Machines (VMs) powered by 3rd generation AMD EPYC processors. According to Google Cloud, the T2D instance offers 56% higher absolute performance and more than 40% higher price performance for scale-out workloads.
In addition, it was announced last week that AMD's EPYC processors will power the new Alletra 600 from Hewlett Packard Enterprise Co (NYSE: HPE). The Alletra 600 is a cloud-native data infrastructure storage solution that supports business-critical applications with the cloud power experience. This shows that AMD’s technological advances are getting the recognition they deserve. Given the current high demand for the company's product, would you consider investing in AMD stock?
Next up we have hip tech giant Nvidia. For strangers, the company develops GPUs for the gaming and professional market. The company also manufactures system-on-a-chip devices for the mobile computing and automotive markets. NVDA stock is showing strong bullish momentum and is currently trading at its all-time high. In fact, it rose over 33% in the last month alone. So let's see what the trigger is for this powerful movement.
Nvidia's CEO said Thursday the company would spend at least $ 100 million on a supercomputer in the UK. Furthermore, according to CEO Jensen Huang, this could only be the “starting point”. Nvidia is in the process of acquiring British chip technology company Arm Ltd for $ 40 billion from Japanese SoftBank Group Corp. to acquire. The company is optimistic about regulatory approval despite being rejected by Nvidia's competitors and is under regulatory scrutiny. Once the deal is closed, Nvidia could potentially take Arm's technology to new markets.
Basically, the company is also very strong. Nvidia achieved record sales of $ 5.66 billion, up a whopping 84% year over year. Much of that revenue came from $ 2.76 billion in gaming revenue. Additionally, data center revenue was $ 2.05 billion, up 79% year over year. When you combine its strong financial numbers with the exciting developments going on around the company, wouldn't you consider NVDA stock to be one of the top semiconductor stocks?
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Xilinx is a company engaged in the design and development of programmable devices and related technologies. Through its highly flexible programmable silicon, made possible by a range of advanced software and tools, it promotes rapid innovation in a wide variety of industries and technologies. The XLNX share has been trading sideways since the beginning of the year. However, you would have benefited over 40% if you had invested a year ago.
Last week, the company acquired Silexica, a private provider of C / C ++ programming and analysis tools. Xilinx will integrate Silexica's SLX FPGA tool suite with the unified Xilinx Vitis ™ software platform to significantly reduce the learning curve for software developers building sophisticated applications on Xilinx technology. This corresponds to the long-term goal of accelerating the path from software to application-optimized hardware systems.
In May, Xilinx announced its financial results for the fourth quarter and fiscal year 2021. The company posted record sales of $ 851 million for the quarter, up 13% year over year. In addition, net income was $ 188 million, up 16% from the year-ago quarter. The company is poised to achieve record sales and double-digit year-over-year growth amid a challenging supply chain environment. With that in mind, would you add XLNX shares to your watchlist?
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Another top semiconductor stock on the stock market today is Broadcom. The company designs, develops and supplies a range of semiconductor and infrastructure software solutions. The Semiconductor Solutions segment comprises product lines for semiconductor solutions as well as its Internet Protocol (IP) licensing. The infrastructure software segment now comprises the mainframe and corporate software solutions as well as the fiber channel storage area networking business.
On Tuesday, the company announced new, industry-first, Value Stream Management (VSM) features in its ValueOps software portfolio. It combines the functions of Clarity ™ with the advanced agile management functions of the Rally® software. This new integration provides a unified solution for business and IT executives to create and manage consistent value streams. This would eliminate friction between the rollers, reduce cycle times and ultimately improve overall quality.
Broadcom also released a strong earnings report for the second quarter in early June. The company's revenue for the second quarter was $ 6.61 billion, up 15% from the year-ago quarter. It also reported GAAP net income of $ 1.49 billion. This strong financial metric reflects the high demand for semiconductors in its various end markets. For the third quarter, the company expects continued year-on-year growth. All in all, would you invest in the future of AVGO shares?