In its fiscal 2026 first quarter, Marvell posted a record $1.895 billion in revenue, a 63% increase from the same period last year. Data-center sales surged 76% year-over-year and now make up nearly three-quarters of total revenue. For cloud customers juggling scale and speed, Marvell’s one-stop-shop approach is proving attractive. ASML is the sole provider of extreme ultraviolet (EUV) lithography machines, the sophisticated tools used to manufacture the world’s most advanced chips. The combination gives Qualcomm a clearer shot at the AI inferencing market, where it’s now poised to take on more established players in the data-center space.
Key factors
- So, if you believe these sectors will stick around in the future, ignore the near-term slowdown in chip demand.
- The company’s product lineup extends beyond CPUs, including chipsets, integrated graphics, memory and networking hardware, catering to various computing needs from consumer electronics to enterprise servers.
- Regarding valuation, Micron’s stock presents an attractive investment opportunity, particularly when considering its growth prospects relative to its current market valuation.
Some traders use options to speculate on high-volume stocks such as semiconductor stocks. Traders might buy call options if they think a semiconductor stock might rise in price, or they might buy put options if they think it will fall in price. Semiconductor shares also can be expensive, which could make some companies unaffordable for investors whose brokers don’t offer fractional shares (the ability to buy less than 1 share at a time). Intel (INTC), Micron (MU) and Texas Instruments (TXN) are all examples of IDMs. In fact, it has projected double-digit revenue growth for 2024, but more importantly a roughly 50% jump in profits. That bodes well not just for shares but also for the potential of greater dividends supported by this stronger stream of profits going forward.
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- This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.
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- Nvidia’s early and ongoing investments in autonomous driving technology and virtual reality position it to benefit from growth in these sectors as they move closer to mainstream adoption.
- Intel’s innovations have powered decades of computing advancements, significantly contributing to developing desktop, laptop and server markets.
- In fact, industry research firm International Data Corporation has predicted a long-anticipated return to growth for the semiconductor industry this year after raising its sales forecasts in November 2023.
Qualcomm (QCOM, $155.93) is pushing well beyond its mobile roots with a series of strategic moves aimed at capturing growth across AI, edge computing and next-generation connectivity. But even with that drag, the chipmaker’s broad product lineup – ranging from CPUs and GPUs to software and full-rack AI systems – offers a resilient foundation as it targets the booming AI market. Production is ramping for its next-generation Blackwell chips, which promise major performance gains. And, while U.S. restrictions on advanced chip exports to China present a challenge, Nvidia’s financial performance hasn’t missed a beat. The impressive growth in May builds on a stellar 2024, when global semiconductor revenues hit $627.6 billion — up 19.1% from $526.8 billion in 2023.
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None of the information in our articles is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any security, company, or fund. The views about companies, their securities and funds expressed in this article reflect the personal opinions of the individual writer. They do not represent the opinions of Vertigo Studio SA (publishers of FinMasters) on whether to buy, sell or hold shares of any particular stock. ProShares Ultra Semiconductors replicate two times (2x) the daily performance of the Dow Jones U.S. SemiconductorsSM Index. However, fees and expenses will accumulate over time in such daily balanced ETFs, making it a better trading instrument than a long-term holding. By 2021, crypto cooled down, and demand for graphic cards started to get back to normal, leading to a steep fall in Nvidia’s stock prices.
Indices and Market Movers
We then filtered these stocks based on their YTD returns and ranked the top 10 in ascending order, placing the best-performing stocks at the top. Additionally, we included data on hedge fund holdings in these companies as of Q to provide further insight into investor interest. For investors, the semiconductor sector continues to offer compelling opportunities, given its role in driving technological innovation.
It may contain forward-looking statements, and actual outcomes can vary due to numerous factors. Past performance of any security does not guarantee Best semiconductor stocks future results.This blog is for informational purposes only. Investors must undertake independent analysis with their own legal, tax, and financial advisors and reach their own conclusions regarding investment in securities markets.Past performance is not a guarantee of future results. Broadcom designs and supplies networking, connectivity, and storage chips, which are essential for AI infrastructure, data centers, and telecom networks. At the core of this growth is GPU technology, which has evolved beyond gaming to drive AI, machine learning, and high-performance computing. While Nvidia leads the AI revolution, AMD, Intel, and Broadcom are expanding their AI and data-center businesses to capture a larger share of this booming market.
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Intel even pays a decent dividend yield of 3.86% currently, which is fairly high for a tech company. TSMC has been called by many as one of the most important companies in the world. It is the primary chip manufacturer and the world’s largest semiconductor foundry. Taiwan Semiconductor uses ASML machinery to create chips that other companies design. Many believe companies like NVIDIA and Apple make their chips, but that’s not exactly true.
The company’s focus on innovation is evident in its contributions to developing next-generation memory technologies, including 3D XPoint, which significantly improves speed and endurance over traditional NAND. Just a few generations ago, most items around us relied on mechanical systems to do their job, with electronics limited to radio and advanced computers the size of a building. Today, almost everything contains some form of control board, computer chips, and other electronic systems. It’s no wonder why many investors are looking for the best semiconductor stocks to add to their portfolios. The semiconductor industry faces several risks, including market volatility and global trade policy changes.
Marvell Technology
Such investments are subject to risks, including the potential loss of principal. A smart approach is diversifying across chip designers (Nvidia), manufacturers (Intel, ASML), and connectivity enablers (Broadcom, Qualcomm) to capture growth across the value chain. Semiconductors are no longer just about tech—they’re a strategic pillar of the global economy, driving AI, cloud computing, and national security initiatives. Intel is an integrated device manufacturer (IDM), meaning it designs and manufactures its own chips. It produces PC and server processors, AI accelerators, and networking hardware.
The demand for high-performance, AI-ready chips is rising fast – driven by cloud providers, enterprises, government technology initiatives, and the broader push toward smarter, more autonomous systems. Taiwan Semiconductor Manufacturing Company Limited is the world’s largest dedicated integrated circuit foundry. As a foundry, TSM manufactures ICs for its customers based on their proprietary IC designs using its advanced production processes. Taiwan Semiconductor Manufacturing Company Limited’s goal is to establish itself as one of the world’s leading semiconductor companies by building upon the strengths that have made it the world’s leading IC foundry. Disclaimer – This article draws from sources such as the Financial Times, Bloomberg,and other reputed media houses. Please note, this blog post is intended for general educational purposes only and does not serve as an offer, recommendation, or solicitation to buy or sell any securities.
AMD has successfully expanded its presence in the data center market with its MI300 series AI accelerators and EPYC processors. The company’s acquisition of Xilinx has strengthened its position in adaptive computing solutions. For example, take chip manufacturers such as the world’s largest, Taiwan Semiconductor Manufacturing (TSM -0.8%).
Just as there are many different types of semiconductors, there are many types of semiconductor stocks. These include fabrication equipment manufacturers, integrated device manufacturers, fabless designers, foundries, assembly and testing firms and distributors. Jeff Reeves writes about investments, the stock market, exchange-traded funds and retirement topics. A veteran journalist with extensive capital markets experience, Jeff has covered Wall Street and investing since 2008. Beyond Forbes Advisor, his work has appeared in numerous respected finance outlets including CNBC, Fox Business, The Wall Street Journal digital network, Kiplinger, USA Today and CNN Money. However, what makes UMC worth considering is its huge income potential, with an annual dividend that is approximately five times the S&P 500 right now.