Semiconductor Stocks Poised for Explosive Growth in 2024

3 Semiconductor Stocks to Buy in 2024 as the Sector Marches on

Semiconductors have been the success story of Wall Street over the past two years. Much of the gain that the technology sector has made since the onset of 2023 has been based on the AI optimism-led semiconductor boom. The rising demand for electronics also ensures their status as profitable holdings for investors. Per the Semiconductor Industry Association, global sales for semiconductors are expected to reach $611.2 billion in 2024, rising 16% year over year. In 2025, it is likely to rise 12.5%. The chip-making sector is not only attracting investors but has also availed billions of dollars from the Biden administration to build factories in the United States. The semiconductor boom has led to advances in communications, computing, health care, military systems, transportation, clean energy and countless other applications. Over the past week, the semiconductor industry has risen 1.9%, with NVIDIA Corporation NVDA up 0.8%. The industry has surged 94% over the past year. The benchmark iShares Semiconductor ETF (SOXX) has grown 35.8% year to date as of Jul 15, despite sectoral headwinds like the Israel-Palestine conflict. The global semiconductor market's fundamentals remain robust, and the chip market is expected to grow even further in the second half of 2024. Much of the gains made over the past year and a half can be accredited to the meteoric rise of NVIDIA. However, the sector has other stocks that promise a lot. Overlooked semiconductor stocks, in particular, present significant potential. Our Picks We have selected three semiconductor stocks. These stocks have a Zacks Rank #1 (Strong Buy) or #2 (Buy). The search was also narrowed down to stocks with a VGM Score of A or B. Here, V stands for Value, G for Growth and M for Momentum. The score is a weighted combination of these three metrics and allows one to eliminate the negative aspects of stocks and select winners. You can see the complete list of today's Zacks #1 Rank stocks here Taiwan Semiconductor Manufacturing Company Limited TSM is the world's largest contract chipmaker. They build chips designed by others. The company was recently valued near $1 trillion. TSM's expected earnings growth rate for the current year is 18.9%. The Zacks Consensus Estimate for its current-year earnings has improved 1% over the past 60 days. The company has a Zacks Rank #2 and a VGM Score of B. Micron Technology, Inc. MU is another industry giant, valued at around $145 billion, and specializes in memory and storage chips. MU's expected earnings growth rate for the current year is 126.1%. The Zacks Consensus Estimate for its current-year earnings has improved 31.8% over the past 60 days. The company has a Zacks Rank #2 and a VGM Score of B. Cirrus Logic, Inc. CRUS is a semiconductor company that develops low-power, high-precision mixed-signal processing solutions in China, the United States and globally. CRUS' expected earnings growth rate for the next year is 13.7%. The Zacks Consensus Estimate for its next-year earnings has improved 3.3% over the past 60 days. The company has a Zacks Rank #1 and a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Micron Technology, Inc. (MU) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report Cirrus Logic, Inc. (CRUS) : Free Stock Analysis Report The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

7 Semiconductor Stocks That Could Make You a Millionaire

Semiconductors have long been vital to our lives, powering not only our computers, but these days, our cars, smartphones, and even smart refrigerators and washing machines. Thus, it's not surprising that lots of semiconductor stocks have been phenomenal performers, making their shareholders wealthier. With the recent proliferation of artificial intelligence (AI) applications, semiconductors have become even more vital. Here's a look at seven semiconductor companies that seem to have bright futures -- along with a different way to invest in semiconductors -- via exchange-traded funds (ETFs). Note that they have different focuses and different valuations, too. Nvidia (NASDAQ: NVDA) has grown at a torrential rate in recent years, with many expecting it to keep doing so. (Others see it as needing to take a breather.) The company made a name for itself with gaming chips, but now it's not only a leader in graphics processing units (GPUs) for games but also in chips for data centers. And data centers are booming, as much of our AI activity runs through them. The stock's valuation is steep, but if it keeps growing like crazy, it can be warranted. Proceed with caution if you're risk-averse. 2. Taiwan Semiconductor Taiwan Semiconductor (NYSE: TSM) is the world's largest contract chipmaker, building chips designed by others. Recently valued near $1 trillion, its growth prospects are good, as it's a leader in its field, able to enjoy economies of scale. On the other hand, as it's based in Taiwan, it's vulnerable to China -- and the U.S. and others are working to develop more competition for the company. 3. Intel Intel (NASDAQ: INTC) is one of the most well-known chipmakers, recently carrying a market capitalization of $145 billion. Shares seem reasonably valued lately, after a sizable decline due to tough competition, heavy investments in future growth, and a loss of some market share. The company is aiming to grow in chips for laptops -- and is including a built-in AI processor in them. 4. Broadcom Broadcom (NASDAQ: AVGO) has lots of fans because it specializes not only in chips but also software -- and its operations are very diversified, too, including wireless and wired technology, optical products, mainframe software, cybersecurity, and storage, among many others. Its customers include Apple, Microsoft, AT&T, Intel, and many other big names. Broadcom is executing a 10-for-1 stock split on July 12. 5. Qualcomm Qualcomm (NASDAQ: QCOM) has been designing mobile chips for a long time -- and those chips have probably been in most of the iPhones you've owned. Apple is looking to make its own chips in the coming years, though, which may challenge Qualcomm. But it's been busy making chips for vehicles and smart appliances, among other things, diversifying its operations. Its foray into laptop chips is another promising move. 6. Monolithic Power Monolithic Power (NASDAQ: MPWR) isn't as well known as some other semiconductor companies, nor is it as big, with a recent market value near $41 billion. But it's been growing like gangbusters, taking market share from rivals with its data-center chips. Its valuation seems steep, with a recent forward-looking price-to-earnings (P/E) ratio of 63, well above its five-year average of 43. So perhaps wait and hope for a pullback, buy in installments over time, or just jump in if you expect its amazing run to continue. 7. Micron Technology Micron Technology (NASDAQ: MU) is another semiconductor titan, valued near $145 billion recently, and specializing in memory and storage chips. Its believers like its solid balance sheet and its typical strong performance when the cyclical memory market is booming. Detractors are wary of downturns in the memory market and view it as overvalued, with a recent forward-looking price-to-earnings (P/E) ratio of 15, above its five-year average of 12. Bonus idea: Semiconductor ETFs These companies are all intriguing, and many of them, but perhaps not all, will be outstanding performers in the years and decades ahead. (Much will also depend on the price at which you invest in them, if you do, so aim to buy when they appear undervalued or at least reasonably valued.) One way to play it a bit safe -- while also aiming for outsized returns -- is to invest in semiconductors via ETFs that focus on them. Check out these that have solid track records: Consider keeping some of your assets in semiconductors -- whether via individual stocks or ETFs. Or both! The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now... and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $791,929!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Selena Maranjian has positions in AT&T, Apple, Micron Technology, Microsoft, Nvidia, Qualcomm, SPDR Series Trust-SPDR S&P Semiconductor ETF, and iShares Trust-iShares Semiconductor ETF. The Motley Fool has positions in and recommends Apple, Microsoft, Nvidia, Qualcomm, Taiwan Semiconductor Manufacturing, and iShares Trust-iShares Semiconductor ETF. The Motley Fool recommends Broadcom and Intel and recommends the following options: long January 2025 $45 calls on Intel, long January 2026 $395 calls on Microsoft, short August 2024 $35 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

7 Semiconductor Stocks That Could Make You a Millionaire | The Motley Fool

Yes, Nvidia is one of them. But it's not the only semiconductor game in town. Semiconductors have long been vital to our lives, powering not only our computers, but these days, our cars, smartphones, and even smart refrigerators and washing machines. Thus, it's not surprising that lots of semiconductor stocks have been phenomenal performers, making their shareholders wealthier. With the recent proliferation of artificial intelligence (AI) applications, semiconductors have become even more vital. Here's a look at seven semiconductor companies that seem to have bright futures -- along with a different way to invest in semiconductors -- via exchange-traded funds (ETFs). Note that they have different focuses and different valuations, too. Nvidia (NVDA 1.44%) has grown at a torrential rate in recent years, with many expecting it to keep doing so. (Others see it as needing to take a breather.) The company made a name for itself with gaming chips, but now it's not only a leader in graphics processing units (GPUs) for games but also in chips for data centers. And data centers are booming, as much of our AI activity runs through them. The stock's valuation is steep, but if it keeps growing like crazy, it can be warranted. Proceed with caution if you're risk-averse. Taiwan Semiconductor (TSM 1.54%) is the world's largest contract chipmaker, building chips designed by others. Recently valued near $1 trillion, its growth prospects are good, as it's a leader in its field, able to enjoy economies of scale. On the other hand, as it's based in Taiwan, it's vulnerable to China -- and the U.S. and others are working to develop more competition for the company. Intel (INTC 2.96%) is one of the most well-known chipmakers, recently carrying a market capitalization of $145 billion. Shares seem reasonably valued lately, after a sizable decline due to tough competition, heavy investments in future growth, and a loss of some market share. The company is aiming to grow in chips for laptops -- and is including a built-in AI processor in them. Broadcom (AVGO -0.31%) has lots of fans because it specializes not only in chips but also software -- and its operations are very diversified, too, including wireless and wired technology, optical products, mainframe software, cybersecurity, and storage, among many others. Its customers include Apple, Microsoft, AT&T, Intel, and many other big names. Broadcom is executing a 10-for-1 stock split on July 12. Qualcomm (QCOM 1.29%) has been designing mobile chips for a long time -- and those chips have probably been in most of the iPhones you've owned. Apple is looking to make its own chips in the coming years, though, which may challenge Qualcomm. But it's been busy making chips for vehicles and smart appliances, among other things, diversifying its operations. Its foray into laptop chips is another promising move. Monolithic Power (MPWR 2.98%) isn't as well known as some other semiconductor companies, nor is it as big, with a recent market value near $41 billion. But it's been growing like gangbusters, taking market share from rivals with its data-center chips. Its valuation seems steep, with a recent forward-looking price-to-earnings (P/E) ratio of 63, well above its five-year average of 43. So perhaps wait and hope for a pullback, buy in installments over time, or just jump in if you expect its amazing run to continue. Micron Technology (MU 2.55%) is another semiconductor titan, valued near $145 billion recently, and specializing in memory and storage chips. Its believers like its solid balance sheet and its typical strong performance when the cyclical memory market is booming. Detractors are wary of downturns in the memory market and view it as overvalued, with a recent forward-looking price-to-earnings (P/E) ratio of 15, above its five-year average of 12. These companies are all intriguing, and many of them, but perhaps not all, will be outstanding performers in the years and decades ahead. (Much will also depend on the price at which you invest in them, if you do, so aim to buy when they appear undervalued or at least reasonably valued.) One way to play it a bit safe -- while also aiming for outsized returns -- is to invest in semiconductors via ETFs that focus on them. Check out these that have solid track records: Consider keeping some of your assets in semiconductors -- whether via individual stocks or ETFs. Or both!

5 Semiconductor Stocks Set For Explosive Growth In Second Half 2024, Says JPMorgan: Nvidia Not Included - Broadcom (NASDAQ:AVGO), Analog Devices (NASDAQ:ADI), Micron Technology (NASDAQ:MU), Microchip Technology (NASDAQ:MCHP)

These companies are expected to benefit from the cyclical recovery and strong AI demand into 2025. In the fiercely competitive semiconductor industry, Nvidia Corp often captures the spotlight with its groundbreaking AI advancements. However, the industry's next major winners might not be the usual suspects. Enter JPMorgan analyst Harlan Sur, who's set to shine a spotlight on five semiconductor titans poised for explosive growth in the second half of 2024. Analyst Sees 30-40% EPS Upwards Revisions Over Quarters Ahead JPMorgan's top semiconductor picks, according to Sur, include Broadcom Inc AVGO, Marvell Technology Inc MRVL, Micron Technology Inc MU, Analog Devices Inc ADI, and Microchip Technology Inc MCHP. These companies are riding the wave of a cyclical recovery and robust AI demand that shows no signs of slowing. Sur notes that semiconductor and semi-cap equipment stocks have surged more than 35% year-to-date, significantly outperforming broader indices. This trend, fueled by positive earnings revisions and strong industry fundamentals, is expected to continue through 2024 and into 2025. Read Also: Nvidia Could Be Worth Nearly $50 Trillion In A Decade, Says Early Tesla, Amazon Investor: Nearly 2X That Of US Or 3X Of China's Current GDP 5 Semiconductor Stocks Picks Beyond Nvidia Broadcom (AVGO), for instance, stands out due to its leadership in networking and AI compute. As cloud and enterprise workloads recover, Broadcom's prowess in high-speed networking solutions positions it for substantial gains. Sur emphasizes Broadcom's pivotal role in the AI infrastructure build-out, a sector experiencing unprecedented growth. Next, we have Marvell Technology (MRVL). Known for its optical connectivity solutions, Marvell is set to benefit from the increased demand for AI compute and high-speed networking capabilities. Sur is particularly optimistic about Marvell's potential to capture market share in the AI-driven data center space. Micron Technology (MU) is another top pick, with its expanding 2.5D packaging solutions and strong memory segment. Despite the recent downturn in memory markets, Sur believes Micron is positioned for a robust recovery as demand for AI and high-performance computing continues to climb. Sur's list also includes Analog Devices (ADI), which is well-positioned to capitalize on the inflecting demand across various end markets, including automotive and industrial sectors. ADI's diverse product portfolio and strategic positioning make it a standout choice in the cyclical recovery. Lastly, Microchip Technology (MCHP) rounds out the list. With improving fundamentals and a strong presence in the IoT and automotive sectors, Microchip is poised for growth as these markets recover in the second half of the year. JPMorgan's semi-cap equipment favorite, KLA Corporation (KLAC), is also worth mentioning. Sur highlights KLAC's strong utilization rates and increasing orders for advanced foundry and logic equipment, driven by the demand pull from AI and high-performance computing. So, while Nvidia continues to dazzle, keep an eye on these five under-the-radar semiconductor stars. According to JPMorgan's Sur, their time to shine is just around the corner. Read Next: Benzinga Bulls And Bears: Apple, Nvidia, Palantir, MicroStrategy And Shiba Inu's Ambitious Trillion-Dollar Vision Photo: asharkyu/Shutterstock.com Market News and Data brought to you by Benzinga APIs