Investors who had their money in semiconductor stocks in 2023 certainly reaped the rewards. As technology advances, semiconductors are becoming increasingly vital in various industries, such as electric vehicles, smart cities, and generative AI. To continue profiting in 2024, here are some of the best semiconductor stocks to consider.
Advanced Micro Devices (AMD)
Advanced Micro Devices (AMD) has been a top player in the semiconductor market for a while. Although it faced tough competition in the generative AI sector in 2023, things are looking up for AMD this year. The company is launching its Instinct MI300 accelerators, capable of running generative AI applications. Analysts estimate that AMD could ship around 400,000 units in 2024. Additionally, AMD has high hopes for its Ryzen 8040 Series processors for laptops, which could provide another significant revenue stream. With a 120% increase in stock value over the past year, AMD is an attractive option.
Nvidia (NVDA)
Nvidia is AMD’s main competitor in the generative AI space. In 2023, Nvidia experienced tremendous growth as demand for its semiconductors soared. Its revenue jumped by 206% in the third quarter alone. Even though Nvidia has a strong hold on the market, its gains may not be as high as in 2023. However, with an 85% market share in the accelerator chip market and attractive fundamentals, including trading at only 24 times FY2025 earnings, Nvidia is still worth considering.
Broadcom (AVGO)
Broadcom is a California-based company that produces semiconductors and infrastructure software solutions. With its products used in various applications, including data centers and networking, Broadcom experienced 8% growth in 2023. The company is enthusiastic about the potential returns from its acquisition of VMWare, which could boost revenue from $35.8 billion to $50 billion in 2024. Broadcom also offers a decent dividend of nearly 2%, making it an appealing choice.
Ebang International Holdings (EBON)
While Ebang International Holdings is a Chinese company, its focus on Bitcoin mining makes it an intriguing option in the semiconductor market. Despite experiencing a drop in revenue and profits in the first half of 2023, the recent surge in the cryptocurrency market, with Bitcoin rising more than 50%, suggests a brighter future for Ebang. With an “A” rating in the Portfolio Grader and a 47% increase in stock value over the past year, it’s worth keeping an eye on Ebang.
Applied Optoelectronics (AAOI)
Applied Optoelectronics specializes in providing optical components for various industries, including telecom and data centers. The company had an exceptional year in 2023, experiencing an 800% increase in stock value. Its strong performance was driven by a supply agreement with Microsoft and greater demand for its data center products. With revenue of $56.7 million in the third quarter and an improved loss compared to the previous year, Applied Optoelectronics is a promising semiconductor stock.
Universal Display Corp. (OLED)
Universal Display Corp. stands out as a manufacturer of organic light-emitting diode technology used in televisions and digital displays. With millions of pixels relying on this technology, Universal Display Corp. plays a crucial role in the industry. While specific financial data for 2024 is not available, the strong growth of the display market suggests positive prospects for the company.
As always, it is important for investors to conduct thorough research and consider their risk tolerance before making any investment decisions.
The source of the article is from the blog girabetim.com.br