7 Best-Performing Semiconductor Stocks for November 2024

Imagine every sector, from healthcare to finance, infused with superhuman intelligence. Privacy Policy | No cost, no obligation to buy anything ever.Past performance is no guarantee of future results. Our experts picked 7 Zacks Rank #1 Strong Buy stocks with the best chance to skyrocket within the next days. All of the funds shown above are thematic ETFs, but there are a few other types of semiconductor ETFs to be aware of, such as single-stock ETFs and leveraged ETFs. It’s almost impossible to discuss semiconductors without a mention of Taiwan Semiconductor Manufacturing Company, often called TSMC.

Best semiconductor ETFs to buy right now

While revenue slumped over the last fiscal year, ADI is tracking a double-digit growth rate in 2024 as a sign that things are looking up. Shares slightly topped the performance of the S&P 500 across all of 2023, but more importantly they are up significantly from their 52-week low in October 2023. You might think it’s counterintuitive that a firm with “analog” in its name would be a leader in the digital age. But that’s the catch, as Analog Devices specializes in sensors and data converter products that translate real-world analog signals into digital data that can be sorted, analyzed and used effectively in a 21st-century economy. While trillion-dollar Nvidia Corporation (NVDA) has been turning heads, Broadcom is no slouch as the #2 largest U.S.-based semiconductor company. They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

What are Semiconductor Stocks?

Advanced Micro Devices is a global semiconductor company known for its pioneering work in the fields of microprocessors, graphics processors and related technologies. The semiconductor market might seem confusing at first, but it becomes easier to understand once you break apart the pieces. TSML, ASML, NVIDIA, and Qualcomm are all solid starter stocks in this sector, and they should all continue to rise over the next decade amid soaring demand for more powerful chips. Qualcomm’s revenue and adjusted earnings grew 12% and 18%, respectively, last year. Those growth rates were stable, but analysts web application architecture best practices expect its revenue and earnings to surge 43% and 74%, respectively, this year as smartphone makers sell more 5G devices.

Supply chain difficulties are anticipated to diminish, boosting production capabilities and distribution efficiency. Despite these challenges, the enduring demand for semiconductors, driven by 5G expansion, AI advancements and broader digital integration, suggests sustained rfp software development growth. Investors who leverage these trends should focus on companies with robust innovation, effective supply chain strategies and a strong foothold in critical technological domains.

Notable in the cash flow statement is an entry for nearly $2 billion in interest – or roughly 7% of its capex – flowing from the company’s cash horde of $48 billion. Two quarters into 2024, the pace has decelerated with capital expenditures totaling $3.2 billion, or about $6.4 billion estimated annually. At some point, these investments pay off and diminish the need for new investments. However, it is prudent to consider semiconductor companies in terms of their financial strength. Technology matters a great deal, but so too does the financial resources to keep up with Nvidia, or best it for that matter.

Micron Technology

TSM is well-positioned to capitalize on the growing demand for advanced semiconductor chips, fueled by advancements in 5G, artificial intelligence, the Internet of Things and electric vehicles (EVs). As the industry’s leading foundry for cutting-edge chip production, TSM’s services are in high demand from tech companies that require sophisticated manufacturing capabilities beyond their internal resources. Investors are drawn to semiconductor stocks for their growth potential, innovation leadership and the industry’s cyclical nature, which offers opportunities for strategic investment during low periods. The appeal of investing in this sector includes the chance to be part of groundbreaking technological advancements, portfolio diversification across tech-driven industries, and the potential for high returns from companies leading in innovation. Plus, some established players in the semiconductor space provide dividends, adding an income component to the growth prospects.

• Nvidia’s (NVDA) blowout first-quarter earnings report solidified its leadership position among the best semiconductor stocks.
• These chips are involved in data centers, enterprise computing, and other workloads, and they also have wide exposure to the artificial intelligence industry.
• Since its start in the late 1980s, TSMC has become one of the largest dedicated semiconductor foundries in the world.
• A PEG ratio of under 1 is usually viewed as undervalued, but growth stocks will often have multiples well above 1.

It is next to impossible to conceive of any industry or part of daily activity that doesn’t brush up against chips in one form or another. Computers, yes, but also all electronic communications, manufacturing, design, media, agriculture, government, business, transportation—you name it, semiconductors have been there, done that, and walked away with the t-shirt. With 2024 starting to wind down, it appears it is going to be a very good year for the stock market, with the S&P 500 up about 24% year to date as of this writing. Tech stocks, in particular, have had a good run, with many benefiting from the advent of artificial intelligence (AI). Because of the very high amount of expense needed to get into the semiconductor business, established companies tend to be able to ramp up profit margins as revenue increases over time. The iShares Semiconductor ETF (SOXX -1.34%) tracks 30 market cap-weighted U.S. semiconductor stocks via the NYSE Semiconductor Index.

Neither online java programmer + python developer from texas state university the author nor editor owned positions in the aforementioned investments at the time of publication. It’s still important to research ETFs before investing, just as you would research stocks. Check out an ETF’s holdings, expense ratio and historical performance before buying. Fabless semiconductor designers are firms that only invent new types of semiconductors, and outsource the actual manufacturing to foundries. Technically speaking, a semiconductor is a material whose electrical properties allow tiny circuits to be embedded into it.

These chips are used to manage power in electric vehicles, and as EV demand has slowed down in 2024, investors have fled the stock in response. The semiconductor stock hasn’t been helped by the fact that slowing industrial activity led to a 21% industrial revenue drop during H1. Stocks that are upstream are affected by broader industry trends and find it difficult to benefit from sector-specific tailwinds such as artificial intelligence. As an illustration, consider the performance of three upstream semiconductor stocks. The first two stocks are up 16% and 4% over the past twelve months while the third is up by a more modest 1%.

That includes a key design for smartphone leader Apple (AAPL), including chips that provide 5G connectivity for iPhones. To make our list of the best semiconductor penny stocks, we ranked semiconductor and semiconductor equipment stocks under $5 by the number of hedge funds that had bought the shares in Q and picked out the top stocks. Below is a list of the top six ETFs that have substantial exposure to semiconductor stocks like NVIDIA, ordered by one-year performance. Both mastered technology that enabled today’s AI boom, TSMC with its 3nm manufacturing process, and Nvidia with its focus on accelerated computing. The semiconductor giant exited Q3 with total assets of $194.9 billion, including $59.6 billion in cash and equivalents, versus total liabilities of $67.8 billion. Since its opening as a public company through its fiscal year 2022—31 years—TSMC has seen revenue CAGR (compound annual growth) of 20.4% and net income CAGR of 23.7%, according to data from S&P Global Market Intelligence.