The stocks of the companies that manufacture integrated circuits to be used in electronics and other semiconductors are called semiconductor stocks. The integrated circuits or chips play a significant role in the development of new technologies; hence, semiconductor companies and their stocks are interesting additions to an investment portfolio.
Semiconductor stocks have demonstrated a positive growth trend in 2019 due to emerging trends like 5G, electric cars, robotics, artificial intelligence, autonomous cars, and the Internet of Things. However, the industry has also suffered a setback due to the ongoing US-China trade conflicts as most of the semiconductor companies supply to Chinese markets.
|TXN||Texas Instruments Incorporated||$186.91||30.71%||172.6B|
|AMD||Advanced Micro Devices, Inc.||$121.10||58.51%||146.8B|
|NXPI||NXP Semiconductors N.V.||$195.96||51.01%||52.0B|
|MCHP||Microchip Technology Incorporated||$73.57||43.50%||40.3B|
|MXIM||Maxim Integrated Products, Inc.||#N/A||#N/A||#N/A|
|ON||ON Semiconductor Corporation||$46.43||89.20%||20.0B|
|VSH||Vishay Intertechnology, Inc.||$19.06||18.68%||2.8B|
|MTSI||MACOM Technology Solutions Holdings, Inc.||$67.09||103.30%||4.6B|
|ASML||ASML Holding N.V.||$813.76||124.26%||335.4B|
|AMAT||Applied Materials, Inc.||$135.57||136.51%||122.5B|
|LRCX||Lam Research Corporation||$567.02||67.31%||79.8B|
|ASX||ASE Technology Holding Co., Ltd.||$7.05||65.11%||15.5B|
|OLED||Universal Display Corporation||$173.75||-8.68%||8.2B|
|IPGP||IPG Photonics Corporation||$158.57||-14.47%||8.5B|
|UMC||United Microelectronics Corporation||$10.56||91.30%||26.3B|
|TSM||Taiwan Semiconductor Manufacturing Company Limited||$113.73||35.64%||555.1B|
|ADI||Analog Devices, Inc.||$172.92||48.47%||92.8B|
|MRVL||Marvell Technology Group Ltd.||$68.14||72.38%||56.1B|
|SWKS||Skyworks Solutions, Inc.||$167.68||19.95%||27.7B|
|SLAB||Silicon Laboratories Inc.||$188.28||94.32%||8.4B|
|CCMP||Cabot Microelectronics Corporation||$123.79||-11.14%||3.6B|
|AMKR||Amkor Technology, Inc.||$22.16||91.70%||5.4B|
|POWI||Power Integrations, Inc.||$101.39||82.59%||6.1B|
|TSEM||Tower Semiconductor Ltd.||$32.01||56.83%||3.5B|
|MU||Micron Technology, Inc.||$69.53||39.06%||77.8B|
|MPWR||Monolithic Power Systems, Inc.||$527.16||73.54%||24.2B|
|FSLR||First Solar, Inc.||$112.69||20.77%||12.0B|
|LSI||Life Storage, Inc.||$129.68||70.68%||10.6B|
|CRUS||Cirrus Logic, Inc.||$81.34||21.89%||4.7B|
|SEDG||SolarEdge Technologies, Inc.||$348.13||31.95%||18.2B|
|LSCC||Lattice Semiconductor Corporation||$68.87||107.31%||9.4B|
|ALTR||Altair Engineering Inc.||$75.80||73.53%||6.0B|
Factors to Consider Before Investing in Semiconductor Stocks
The most critical factor to consider is that the fate of semiconductor stocks is directly correlated to the performance of companies that use their products. Therefore, the overall health of electronics, smartphones, and automobile manufacturers, regulations around them, and overall economic factors need to be considered before investing in semiconductor stocks.
Moreover, investors should also consider the fundamental parameters of semiconductor companies, including earnings growth, revenues, and market valuation. Semiconductor stocks are highly volatile and follow a high-risk high-reward profile.
In addition to fundamental analysis, technical analysis should also be performed before investing in semiconductor stocks. Historical performance in the past one, three, and five years gives a fair idea of the expectations from semiconductor stocks.
Which Semiconductor Stocks Should I Buy?
Among the many semiconductor stocks trading on the stock exchanges, we have compiled a list of the best semiconductor stocks for you to choose from. Most of these top stocks manufacture integrated circuits for high-level electronics and automobile companies and are growing with them.
Despite the negative impact of the trade tensions between the US and China, semiconductor stocks are on a positive trajectory. They hold strong potential to generate better-than-average returns for investors if chosen wisely and after thorough due diligence.