The 7 Best Semiconductor Penny Stocks To Buy For April 2023

As applications proliferate, semiconductor manufacturers continue to prosper. Fisher Asset Management remained the biggest shareholder of the company with 3.9 million shares, worth $2.4 billion. AQR Capital Management is the biggest shareholder of the company with 1.5 million shares, worth $283 million.

The analysts are pretty bullish on this stock; out of 17 who followed it in March, five rated it a strong buy, and nine rated it a buy. It’s expected to reach a price of $78 in 12 months, per average analyst estimates. GlobalFoundries Inc. provides semiconductors for smart mobile devices, personal computers, automotive applications, communications and data infrastructure, and home and industrial IoT, or Internet of Things. At the end of 2021, GlobalFoundries reached an agreement with AMD to provide AMD with about $2.1 billion of silicon wafers through 2025, Reuters reported.

Cheap Semiconductor Stocks To Buy Now

Looking at this kind of impressive growth, it is understandable for investors to be interested in the top semiconductor stocks. NXP Semiconductors has been winning big from the growing adoption of chips in the automotive space, as the company gets more than half of its revenue from this niche. In the third quarter of 2022, for instance, NXP’s total revenue jumped 20% year over year to $3.45 billion. The automotive business did the heavy lifting, as this segment’s revenue increased 24% year over year to $1.8 billion. That was a huge increase, and analysts are expecting AMD to sustain that momentum in 2023 as well.

Global semiconductor sales have been slowing down over the past few months. The stocks on our list were picked based on their fundamentals and prospects for growth in the long run. Starting with our list of 58 semiconductor companies, there are 54 covered by at least five analysts polled by FactSet, and 48 of those have majority “buy” or equivalent ratings. To be more selective, there are 37 companies with at least two-thirds “buy” ratings.

NXP Semiconductors N.V. (NASDAQ: NXPI)

A high ROIC means the company is likely innovating strategically and improving operations to increase efficiency. The 2022 Intel Investor Meeting had the CEO spelling out to the investment community their planned return to greatness. Overwhelmed by the deluge of acronyms and fluff words, we finally came across a slide that made sense – Intel’s plan to grow their business over the next three years.

Per Zacks’ proprietary methodology, stocks with such favorable combinations offer solid investment opportunities. But some investors want exposure to individual stocks as they shoot for big gains. Itself made up of the 100 largest non-financial stocks in the full Nasdaq Composite Index COMP, -0.35%.

Full BioNathan Reiff has been writing expert articles and news about financial topics such as investing and trading, cryptocurrency, ETFs, and alternative investments on Investopedia since 2016. Quarterly report, the company announced a payment of $1.0 billion to shareholders through dividends and shares repurchased in Q1. The stock was down more than 61% for the year-to-date in October 2022, after the U.S. government initiated new restrictions on chip exports to China. NVDA has found its footing since then and is starting to gain momentum. All of this makes KLAC one of the best semiconductor stocks going forward.

Monolithic Power Systems (NASDAQ:MPWR)

Its products are used in numerous industries, such as automotive, industrial, robotics, telecom and high-end consumer applications. Second, Qualcomm owns the world’s largest portfolio of wireless patents, which entitles it a cut of every smartphone sold worldwide. ASML’s revenue and earnings rose 18% and 38%, respectively, last year. Analysts expect its revenue and earnings to grow another 32% and 41%, respectively, this year as it profits from surging demand for new chips. TSMC and three other resilient companies will profit from the surging demand for smaller and more powerful chips. Karen Doyle is a personal finance writer with over 20 years’ experience writing about investments, money management and financial planning.

For a Best semiconductor stock with a market cap of around $53 billion, this is a big number. With that in mind, here are five of the best semiconductor stocks to buy now. Some of them are simply fundamentally superior with leadership positions in growing end markets.

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KLAC https://forex-world.net/ pays a generous $5.20 cash dividend yearly to shareholders. Texas Instruments was established in 1930 and has been among the most stable tech companies in the US. TXN designs, manufactures, and sells analog and embedded processing chips. It has 15 manufacturing sites globally, and tens of billions of chips are produced yearly. It makes money from its infrastructure software and semiconductor solutions.

We picked some of the notable semiconductor stocks that have a low PE ratio and high popularity among hedge funds. PE ratio is an effective metric to judge the attractiveness of a stock’s price. A lower P/E ratio is preferred by investors as it means that the stock is trading at a cheaper price as compared with its peers. We gauged the hedge fund sentiment from Insider Monkey’s database of 920 elite hedge funds. Broadcom reported its fourth quarter earnings results in December.

NVDA stock is trading at $232 today, up 47% over the past six months. This is a must-have and the best semiconductor stock to own right now. A global leader and maker of memory and storage products , Micron has seen a sizeable increase in demand as memory chips are needed both for cloud computing and 5G networks. Nvidia has been a top stock on many investors’ watchlists for various reasons, as its pioneered chip tech in graphic processing units takes an effect on mostly all thriving industries currently.

Customers will be able to search through billions of data points in real time with this fast vector search engine. In addition to its core semiconductor product line, the company is about to launch its SaaS product, searchium.ai, this year. From a technical standpoint, WiSA DS, which uses an Espressif 2.4 GHz IoT Wi-Fi module, is doing well in testing and review cycles with its target clients. As a result, 15 WiSA DS projects are being considered by 12 companies. Its portfolio includes around 80,000 parts used in automotive, industrial, 5G, IoT and healthcare as well as aerospace and defense (A&D). Total revenues were $2.29 billion, increasing from $1.8 billion the prior year.

For all of 2022, revenues were up 29.6% over 2021, laudable in today’s semiconductor market. Dividend yields are calculated by annualizing the most recent payout and dividing by the share price. In fiscal year 2022, the company’s revenues ($660.4 million) and net income ($178.9 million) were up 28.1% and 27.1% year over year, respectively. Gross profit margin percentages have grown from 56.1% in 2017 to 68.5% in 2022.

These chips are also used in the machines that mine cryptocurrency around the world. The semiconductor industry significantly contributes to modern technology and is certainly becoming one of the top choices of investors. The performance of semiconductor stocks can be unpredictable, and the semiconductor industry is complicated. There are hundreds of steps involved in manufacturing the most advanced circuitry, and dozens of players are involved in producing the equipment used to make semiconductor chips.

KLIC is a solid choice among semiconductor stocks for income investors too. It is yielding about 1.4%, and the company has averaged annual dividend growth of roughly 30% since 2018, when it was instituted. That sentiment changed quite quickly when NVIDIA saw revenues plummet over the last two quarters on weakness in gaming and professional visualization. Our plan is to wait for Q4 Fiscal 2023 results next month at which time they’ll likely give some guidance for Fiscal 2024 (analysts are expecting 10% revenue growth). That said, many semiconductor stocks could generate strong returns, as the tech sector has promising growth prospects in the long run, despite its latest slowdown. Some of the major semiconductor stocks also pay strong dividends to shareholders, and raise their dividends each year.

• Bank of America also expects the semiconductor industry to show growth this year.
• And behind financial strength and earnings momentum is increasing demand for semiconductors worldwide in the form of a one-two punch.
• To improve server efficiency and security, that should bring more revenue and earnings.
• The company plans to open a U.S. headquarters in the near future as part of its international expansion.

EMCORE’s strong financial position enables it to continue investing in research and development (R&D) to support the launch of new technologies and drive future growth. Broadband revenues increased due to higher sales of EMCORE’s CATV equipment, which is used in cable television systems around the world. ASML will launch even more advanced EUV systems, called high-NA systems, over the next few years to manufacture 3nm and 2nm chips between 2022 and 2025. That roadmap directly aligns with TSMC’s, and it will enable ASML to remain one of the industry’s most important equipment makers for the foreseeable future. The Dutch company controls about 90% of this market, and its newest EUV lithography systems are used to manufacture 5nm and 7nm chips. Its largest customer is TSMC, so it should directly benefit from the latter’s rising capex over the next decade.

Its products are used in a variety of applications, including military, industrial, medical, and consumer. It has strong fundamentals, a solid product portfolio, and is experiencing robust growth. The stock is worth considering for any investor looking for exposure to the semiconductor sector. The company’s products are based on its proprietary RF CMOS and mixed-signal technologies, which enable it to offer highly integrated cost-effective solutions. Summit’s product portfolio includes power amplifiers, transceivers, receivers, and digital baseband ICs.

Given the industry projection as a whole, the stock entry price for a long-term investment is reasonable. As it may come to no surprise, TSM takes the top spot for best semiconductor stock, given they have the majority global share of the market. In the third quarter, SPWR reported $475.71 million in revenue, beating expectations of $427.67 million.

Long-term debt of $27.2 billion is offset by cash and cash equivalents of $50.8 billion. Fortunes have been made betting on the future of the semiconductor industry, but it can also be a tricky one. Top 4 Artificial Intelligence ETFs in 2023 It may be smart to consider investing in one of these artificial intelligence-oriented ETFs. A company’s return on invested capital indicates how well it’s able to generate profit from the cash it raises via debt and equity it receives.

On the other hand, it is only the future that we are capable of investing in. Therefore, as investors we need to be careful about how we assess the future potential of these companies and more importantly that we calibrate our valuations accordingly. Industry Association, the global sales of semiconductors in 2022 reached $573.5 billion, the highest-ever annual total.