Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
Semiconductors are one of the most precious commodities that power almost every device we use. Moreover, their demand is never going to downsize, at least not in the near future. Many countries are trying to become manufacturing hubs for this high-value product. As a result, the companies making this item become valuable for investors. Their stocks mostly remain progressive and they yield great returns.
Therefore, analysts make lists of handpicked semiconductor stocks. They pick them on the basis of profitability and growth. With this list, investors get the due guidance they need. They can choose the best shares and strengthen their portfolio.
Semiconductor Stocks That Could Be a Steal for Investors
These companies have shown great potential to generate profits. They emerge as a promising stock option for every market participant.
ASML Holdings N.V. (ASML)
ASML doesn’t manufacture semiconductors itself. Instead, it makes technology that’s used to make the end product. They specialize in lithography, a process that etches a design on stone or metal from paper. In the past five years, the firm’s P/E ratios have spanned between 22.6 and 71.4. Also, analysts say that its earning will rise by 18.3% next year.
Monolithic Power Systems, Inc. (MPWR)
Monolithic Power Systems holds expertise in manufacturing integrated circuits. They play a pivotal part in controlling and ensuring the right supply of power in electronic devices. In the last five years, it has outperformed the S&P 500 by nearly 20%. Also, it distributed dividends of 0.8% while maintaining an “A” grade. Its P/E ratios have been ranging between 41.3 to 140.1.
Taiwan Semiconductor Manufacturing Company Ltd. (TSM)
It is one of the largest semiconductor manufacturers in the world. Its clientele includes names like Apple, AMD, and NVIDIA. With a “B” grade, it has grown by 12.7 in the S&P 500 list. The P/E ratios spanned between 13.1 and 40.5 in the last five years. Besides all that, the analysts are positive about 20% growth in the next five years.
NVIDIA Corporation (NVDA)
NVIDIA makes high-end graphic processing units (GPUs) used in different types of devices. It’s got a “B” grade and has done tremendously well in S&P 500 by 32.6%. The P/E ratio has traipsed between 18.5 and 208 in the last five years. Going by current performance, analysts are expecting sales to grow between 27.4% to 33.8% in the next year.
Axcelis Technologies, Inc. (ACLS)
Axcelis manufactures semiconductors parts. To be precise, it specializes in curing systems and implantation systems. It got a “B” grade and outpaced the S&P 500 by 38.2% over the last five years. The P/E ratio stayed between 4.0 and 61.2 for the same duration. The analysts expect sales to grow by 15.0% in the next year.
Conclusion
With these stock options, every stockholder can make their investment valuable. They can ensure long-term growth as well as short-term profits. Chosen wisely, they can become the hero earner of the portfolio. And that’s why, the market participants need to be knowledgeable about the different semiconductor stock options. Hopefully, the investors will now have a better idea about the stocks to pick for greater profits.
Source: https://www.thecoinrepublic.com/2023/08/05/5-us-semiconductors-stocks-that-could-eke-out-big-profits/