Are these the best semiconductor stocks to invest in right now?
Should Investors Be Watching These Top Semiconductor Stocks Amid The Passing Of The Chip Act?
Semiconductor stocks are once again in the headlines in the stock market today. Notably, The House on Thursday voted to pass the $280 billion Chips and Science Act. In specific, its designed to incentivize the production of semiconductors within the United States. Semiconductors are an essential component of many electronic devices, including computers, smartphones, and automotive systems.
The Chip Act would provide tax breaks and other financial incentives to companies that manufacture semiconductors within the United States. The Chip Act is a bipartisan bill, and it has received support from major tech companies, including Intel (NASDAQ: INTC), and Microsoft (NASDAQ: MSFT). As a result, the House approved the legislation with a 243-187 vote, with strong bipartisan support. With that, it’s no surprise that investors will be turning their attention to semiconductor stocks in the stock market now. If you’re keen on the industry, here are three top semiconductor stocks to check out today.
Semiconductor Stocks To Watch Right Now
- Advanced Micro Devices, Inc. (NASDAQ: AMD)
- QUALCOMM, Inc. (NASDAQ: QCOM)
- Texas Instruments Incorporated (NASDAQ: TXN)
Advanced Micro Devices, Inc.
First, let’s take a look at Advanced Micro Devices (AMD). This company continues to drive innovation in high-performance computing, graphics, and visualization technologies. Present day, the company offers the industry’s most diverse portfolio of leadership high-performance and adaptive processor technologies.
Also, AMD appears to be working hard at work based on their most recent news releases. In June, AMD announced the Versal™ AI Core series was selected by Canon for its Free Viewpoint Video System. The Versal AI Core devices can deliver powerful machine learning-based video processing at the edge for Canon camera systems. Evidently, one could expect a revolution in the viewing experience for live sports broadcasting and webcasting. Moving on, AMD announced it will report its fiscal second quarter financial results on Tuesday, August 2, 2022, after market close. Given this information, will you be watching AMD stock closely as we close out the trading week?
Source: TD Ameritrade TOS
Next up, we have Qualcomm (QCOM). The company creates semiconductors, software, and services related to wireless technology. In detail, Qualcomm is a global leader in wireless technology innovator and the driving force behind the development, launch, and expansion of 5G technology. Shares of QCOM fell on Thursday by over 4% to $146.46 per share. This comes after the company reported its third quarter 2022 fiscal earnings.
In the report, the company reported earnings per share of $2.96 on revenue of $10.9 billion. Compared with, the Wall Street consensus earnings estimate of $2.86 per share on revenue of $10.9 billion. Also this month, the company announced a quarterly cash dividend of $0.75 per common share.
Cristiano Amon, President, and CEO of Qualcomm stated, “We are also excited to announce the extension of our patent license agreement with Samsung and the expansion of our strategic partnership to deliver leading premium consumer experiences for Samsung Galaxy devices. Qualcomm is well positioned to be the company bringing advanced connectivity, data processing and intelligence to the edge, enabling cloud-edge convergence.” Taking this into consideration, will you add QCOM to your watchlist today?
Source: TD Ameritrade TOS
To top this list off, we have Texas Instruments. Basically, the company designs and manufactures semiconductors and various integrated circuits. In detail, Texas focuses on developing analog chips and embedded processors, which amounts to greater than 80% of its revenue. It is also one of the biggest semiconductor companies in the world based on sales volume. Also, the company produces its digital light processing technology and education technology products such as calculators and microcontrollers.
This week, Texas Instruments (TXN) reported its second-quarter earnings. In the report, the company notched in earnings per share of $2.45 on revenue of $5.2 billion. For context, wall street’s consensus earnings estimate was $2.07 per share on revenue of $4.6 billion. Meaning, reported stronger-than-expected earnings. The company reported it estimates third-quarter earnings of $2.23 to $2.51 per share on revenue of $4.90 billion to $5.30 billion. In comparison, the current consensus earnings estimate is $2.19 per share on revenue of $4.98 billion. With all the excitement surrounding
As a result, shares of TXN are trading higher up over 4% over the last five trading days. Given the excitement surrounding TXN’s most recent earnings beat, does it deserve a spot on your list?
Source: TD Ameritrade TOS
Originally Posted July 28, 2022 – 3 Semiconductor Stocks For Your Watchlist Right Now
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