UMC - 8 Semiconductor Stocks on Sale as Intel Readies Mobileye IPO
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- Intel (INTC): Intel is spinning off its Israeli computer vision company MobileEye
- Texas Instruments (TXN): Texas Instruments plans to set up a new 300-millimeter chip fabrication plant
- Advanced Micro Devices (AMD): AMD has taken a lot of market share from industry-leader Intel over the years.
- Nvidia (NVDA): One of the foremost companies operating in the metaverse, NVDA has computer graphics processors in high demand for gaming, engineering and other apps.
- United Microelectronics Corp (UMC): Because its operations are so large, the company is crucial for the global supply chains of silicon chips.
- Analog Devices (ADI): Analogue Devices specializes in creating remote monitoring systems and connected cars solutions.
- Taiwan Semiconductor Manufacturing Company (TSM): TSMC is committing to a $100 billion capital expenditure plan to expand operations.
- Camtek (CAMT): More and more manufacturers are releasing silicon chips, meaning the Camtek testing process is becoming more and more important.
There is an increased focus on semiconductor stocks even though the global markets are in flux. Intel’s (NASDAQ:INTC) announcement that it filed initial public offering (IPO) documents for its self-driving car unit Mobileye gave the sector a goose.
These days, there is a lot of competition in the semiconductor industry. To remain relevant and evolve, semiconductor companies have to adapt themselves constantly.
Therefore, the time is ripe to analyze server top-ranking semiconductor stocks. Here are eight names you need to have in your portfolio.
INTCIntel$47.93AMDAdvanced Micro Devices$96.93TXNTexas Instruments$179.06NVDANvidia$221.98UMCUnited Microelectronics Corp$8.15ADIAnalog Devices$162.32TSMTaiwan Semiconductor$99.45CAMTCamtek$31.06Intel (INTC)
Intel (NASDAQ:INTC) has been a dominant player in the computer market for decades. But Intel has seen its market share steadily decline over the past five years as AMD and Nvidia have grown their businesses.
However, Intel’s Alder Lake chips could finally help the company regain the initiative.
Meanwhile, Intel is generating headlines for spinning off Israeli computer vision company MobileEye, which has developed a series of complex technologies in autonomous driving.
They are continually striving to make mobile movement more accessible and easier. The IPO is highly anticipated because MobileEye has amassed an impressive number of design wins and boasts partnerships with some of the biggest automakers in the world.
In their December press release, Intel announced that they would allow half of MobileEye’s stock to be spun out in 2022. Considering the attractive valuation of MobileEye, INTC stock is set to benefit massively from the move.
Texas Instruments (TXN)
Texas Instruments (NASDAQ:TXN) is a semiconductor manufacturing and design company founded in 1930. They provided calculators, digital signal processors and embedded systems.
Due to the rapidly increasing demand for processors, there is a global shortage of these semiconductor chips. They are integral to nearly every machine, so their scarcity impacts many industries and countries. Therefore, there are concerns the company’s plans might not come to fruition.
On that front, the company has you covered. Texas Instruments plans to set up 300-millimeter chip fabrication plants in Sherman, Texas.
The new plant includes cost-saving measures that will help ease supply chain issues and complement three plants that are already operating; two other units in the city and a third in Utah.
It targets growth in the automotive and industrial sectors, looking to incorporate analog and embedded technology in its products to make them more efficient.
AMD (AMD)
Advanced Micro Devices (NASDAQ:AMD) is involved with industry standards such as OpenGL and OpenCL, which many companies use today.
As a technology company, AMD is always looking ahead. In the past few years, we have seen a rapid expansion in graphics cards and other technologies in data centers and at home. The next few years will see these technologies continue to expand. And investors are excited to see where it takes them.
It counts Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) among its customers. Last year it secured Meta (NASDAQ:FB), formerly known as Facebook.
For the full-year fiscal 2022, AMD is forecasted to grow revenues by 31%, finish at approximately $21.5 billion, and have a non-GAAP gross margin of about 51%.
Nvidia (NVDA)
Nvidia’s (NASDAQ:NVDA) GPU technology is considered innovative and groundbreaking.
The company has been able to grow at a rapid pace as a result of its innovative products and services, which have helped it overtake AMD in the GPU market.
Nvidia has also become a major player in AI-related products such as self-driving cars and deep learning.
Perhaps the company’s most exciting venture is its work on the metaverse. NVIDIA Omniverse is a state-of-the-art platform that allows companies to create immersive, shareable 3D prototypes and virtual worlds.
Its 3D production teams have a lot of complex projects that require creativity and a large amount of collaboration.
Let’s also not forget Nvidia will power the metaverse. So, there is more than one way to play this trend through NVDA stock.
United Microelectronics Corp. (UMC)
United Microelectronics Corp (NYSE:UMC) produces a wide range of products such as power management ICs, analog, mixed-signal, and digital ICs. The products focus on RFID, automotive, industrial automation, medical equipment and consumer electronics markets worldwide.
The company’s global supply chain provides them with access to various resources to meet the demand for their products.
The company has manufacturing facilities spread across Asia, Europe, and the United States. Because the company is so large, it is key to global supply chains for semiconductor chips.
Analog Devices (ADI)
Analog Devices (NASDAQ:ADI) is one of the most successful companies in the semiconductor industry.
The company has been producing analog semiconductor devices for more than 50 years and has a wide range of products used in various applications.
These products have different revenue streams that give the company a nice diversified revenue mix.
The company’s success is largely a result of its deep understanding of the markets, which it uses to develop products tailored to specific needs. It also uses advanced technology, including digital signal processing, to create innovative customer solutions. The company has made a wide range of products used in many different industries.
Analog Devices is active in the “internet of things” market by offering solutions to remote monitoring systems and connected cars. The company has leveraged its expertise in analog technology to create innovative solutions for these markets.
Taiwan Semiconductor Manufacturing Company (TSM)
Taiwan Semiconductor Manufacturing Company (NYSE:TSM) is the largest supplier of semiconductors for the global electronics industry.
TSMC manufactures a wide variety of cutting-edge products for virtually every electronics industry sector, from mobile phones to tablets to PCs and servers. They help customers meet their unique needs for customized solutions.
The company designs and manufactures its products and offers design services to customers, such as packaging, test, manufacturing services and system-level integration and manufacturing support.
TSMC is committing to a $100 billion capital expenditure plan. In his article, Chris Lau touched upon the company’s ambitions in Europe and America. He provides a great summary of the company’s achievements and how it will continue to perform well in the next decade.
In particular, he highlights the EU’s backing of TSMC and how the company will play a key role in alleviating the supply chain issues on the continent. This secular tailwind will provide it with a key advantage.
Camtek (CAMT)
Camtek (NASDAQ:CAMT) is a leading developer and manufacturer of semiconductor inspection equipment for the semiconductor industry’s high-end.
The company is not just important; it’s ubiquitous. Semiconductor chips rely on the company for quality testing of materials and products every day.
A pick-and-shovel play strategy is when you invest in an earlier part of the supply chain. If you want to build a diversified portfolio, this is a great stock to have.
In the last couple of years, we have seen how important the semiconductor industry is. The Biden administration has put a lot of emphasis on domestic manufacturing, particularly semiconductor fabrication.
They consider the manufacturing of semiconductors to be a priority because they can greatly improve our production chains and allow for greater economic growth and development.
Because the investment into the semiconductor industry is big, it’s creating many opportunities for Camtek to generate business. When thinking of AMD and Nvidia stocks, you may think of them as the main name within this space. However, all of the chips coming out will have to come in for the testing process provided by Camtek.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.
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