For immediate release
Chicago, IL – January 4, 2022 – Zacks.com announces the list of stocks featured on the Analysts Blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Recent actions featured in the blog include: ON Semiconductor TO, Microchip technology MCHP Advanced micro-systems AMD and MACOM technology MTSI.
Here are highlights from Monday’s analyst blog:
4 Semiconductor Stocks to Buy Amid Strong Industry Growth
The semiconductor industry has continued to grow despite the macroeconomic crisis induced by the coronavirus pandemic, thanks to the increasing adoption of consumer electronics, automobiles, industrial tools and equipment and products. networking and communication.
The larger iShares PHLX Semiconductor ETF, which measures the performance of the semiconductor industry in the US stock market, rose 21.6%, while the S&P Semiconductor SPDR ETF, which tracks the S&P index Semiconductor Select Industry, has gained 22.8% year-to-date.
According to the latest report from the Semiconductor Industry Association, global semiconductor industry sales were $ 48.8 billion for the month of October 2021, with a year-over-year increase and sequential of 24% and 1.1%, respectively.
Factors determining the outlook
The increasing growth in semiconductor sales is attributed to the increasing popularity of recent technologies such as the Internet of Things, artificial intelligence and virtual reality. The semiconductor acts as a key ingredient in the development of these advanced technologies.
Various industries including healthcare, defense, retail and agriculture are relying on these technologies for digital transformation amid the pandemic. The pandemic has also forced organizations to adopt a remote working environment, which has boosted demand for online services and the use of cloud storage services. This, in turn, has driven the demand for data centers, creating growth in the semiconductor field.
The increasing use of electronic products such as wearable devices, smartphones and laptops is also driving the demand for embedded chips. In addition, the growing demand for autonomous and electric vehicles is causing the semiconductor industry to proliferate.
According to global semiconductor trade statistics, annual global semiconductor sales are expected to grow 25.6% in 2021, with a market size of $ 553 billion, driven by the force of memory, analog and logic. In addition, the organization forecasts growth of 8.8% in 2022.
Additionally, the Precedence Research report states that the semiconductor market is expected to reach $ 808.5 billion by 2030, up from $ 430 billion in 2021, with a CAGR of 6.6% between 2021 and 2030.
Shares to buy
Given the bullish scenario, here are four semiconductor stocks that are well positioned to capitalize on the aforementioned trends. In addition to having strong fundamentals, these stocks have a Zacks # 1 (strong buy) or 2 (buy) ranking and a growth score of A or B. You can see The full list of today’s Zacks # 1 Rank stocks here.
ON Semiconductorcapitalized on the strength of the automotive segment. Growing investments in advanced driver assistance systems and wireless charging in the automotive sector remain positive. In addition, it is continually gaining traction among electric vehicle manufacturers for silicon carbide products and insulated gate bipolar transistors.
Apart from that, ON recently made a deal to acquire GT Advanced Technologies in exchange for $ 415 million in cash. With this acquisition, ON Semiconductor aims to increase the silicon carbide (SiC) supply to meet growing customer demand for SiC-based solutions. Additionally, the acquisition bodes well for the company’s growing efforts to create intelligent power and sensing technologies.
ON Semiconductor, currently ranked # 1 in Zacks, has a Growth Score of B. It returned 107.9% year over year.
Microchip technology has consistently benefited from the strength of analog and microcontroller companies. The company’s dominance in 8-, 16- and 32-bit PIC microcontrollers remains a major positive factor in driving revenue and reservation growth.
In addition, MCHP has acquired notable companies such as Tekron International, Microsemi and Atmel to strengthen its product offering. It remains a tailwind. In addition, the increasing efforts to develop a wide range of new innovative and proprietary linear, mixed, power, interface and timing signal products to fuel future growth of the analog business remain beneficial for the company.
Microchip, currently ranked Zacks Rank # 2, has a Growth Score of B. It has gained 26.9% year over year.
Advanced micro-systems is based on the solid performance of the IT and Graphics and Embedded and Semi-Personalized Business segments. It enjoys strong sales of Ryzen and EPYC server processors due to the growing proliferation of AI and machine learning in industries such as cloud gaming and supercomputing.
In addition, the growing influence of seven-nanometer products in the vertical data center industry, driven by trends in work-from-home and e-learning, remains a key enabler for AMD. Plus, its partnership with Microsoft to bring powerful and reliable computing to Windows 11 users – powered by Ryzen processors and Radeon graphics – remains a notable milestone.
Advanced Micro Devices, also ranked # 2 Zacks, has a Growth Score of A. Year-over-year, the stock returned 55.9%.
MACOM technology benefits from solid momentum in the data center market. The growing proliferation of cloud services is benefiting national and international business deployments.
High performance analog components such as TIAs, CDRs, and drivers, required in the 100G deployment, further strengthen MTSI’s presence in the data center market. Additionally, product launches like the two-chip analog solution to maintain momentum in the data center market remain notable for MTSI.
MACOM, currently ranked Zacks Rank # 2, has a growth score of A. Over one year, the stock returned 41.8%.
Top 10 Zacks stocks for 2022
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Past performance is no guarantee of future results. The potential for loss is inherent in any investment. This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether an investment is suitable for a particular investor. It should not be assumed that any investment in any identified and described securities, companies, sectors or markets was or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or securities asset management activities. These returns come from hypothetical portfolios made up of stocks with a Zacks rank = 1 that have been rebalanced monthly without any transaction costs. These are not the returns of actual equity portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for more information on the performance numbers displayed in this press release.
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Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
Microchip Technology Incorporated (MCHP): Free Stock Analysis Report
MACOM Technology Solutions Holdings, Inc. (MTSI): Free Stock Analysis Report
ON Semiconductor Corporation (ON): Free Stock Analysis Report
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