Electronic gadgets, cloud computing, and 5G technologies all rely on the foundation laid by the semiconductor industry. There will be a continuing need for best semiconductor stocks to buy now as the world becomes digital. Due to this expansion, semiconductor stocks are now a viable option for investors. Here, we'll look at the top semiconductor stocks to purchase based on characteristics, including market share, profitability, and projected expansion. We will also look at the value, growth, and income investing techniques investors may use to purchase semiconductor stocks. The semiconductor business has a lot of potential for expansion but also has its share of hazards and difficulties. These dangers and difficulties will also be discussed so that investors may make educated choices.

Overview Of The Semiconductor Industry

Electronic products like cell phones, laptops, and cars rely heavily on semiconductors. Memory chips and logic chips are the two main categories in this market. Data may be stored on memory chips and manipulated using logic chips. In 2019, the global best semiconductor stocks to buy market was valued at $522.7 billion; by 2027, that number is expected to rise to $870.1 billion, a CAGR of 6.6%.

Listed Here Are The Top Semi Stock Picks

NVIDIA Corporation (NVDA)

Regarding GPUs and AI technologies, NVIDIA is unrivaled as a top vendor. The company's wares find applications in the gaming industry, data centers, and driverless cars. With a 78.5% share of the GPU industry, NVIDIA is positioned to reap the rewards of rising demand in artificial intelligence (AI) and autonomous cars. NVIDIA's sales jumped 41% to $16.68 billion in 2020, thanks to surging demand for its video game and data center hardware.

Advanced Micro Devices (AMD)

Microprocessors, graphics processors, and chipsets for desktop and server computers are all products of AMD, a semiconductor manufacturer. The business has been gaining ground in the PC and server industries at the expense of its biggest rival, Intel. The high demand for AMD's Ryzen and EPYC processors in 2020 pushed the company's sales up by 45 percent to $9.76 billion.

Taiwan Semiconductor Manufacturing Company (TSMC)

TSMC produces chips for industry heavyweights like Apple, Qualcomm, and AMD, making it the biggest semiconductor foundry in the world. With a 55 percent share of the best semiconductor stocks to buy today foundry industry, the business is positioned to capitalize on rising demand for 5G and IoT. (IoT). In 2020, TSMC's revenues increased by 25%, reaching $47.81 billion.

Intel Corporation (INTC)

Regarding PCs and servers, Intel is unrivaled as a producer of microprocessors and chipsets. Competition from AMD in the personal computer and server segments has been rising in recent years. On the other hand, Intel is set up to take advantage of the expanding markets for AI and driverless cars. In 2020, Intel reported an 8% increase in sales, totaling $77.87 billion.

Qualcomm Incorporated (QCOM)

If you're looking for semiconductors for your smartphone or tablet, go no further than Qualcomm. The business is poised to capitalize on the rising demand for 5G technology thanks to its 42% share of the smartphone processor industry. In 2020, Qualcomm's sales increased by 17%, reaching $23.53 billion.

Micron Technology, Inc. (MU)

Micron Technologies is a market leader in producing memory chips for various electronic devices. The company's 22% share of the DRAM market puts it in a solid position to capitalize on rising data storage needs. In 2020, Micron reported a 24% increase in sales, totaling $21.44 billion.

Texas Instruments Incorporated (TXN)

Texas Instruments is a market leader in producing analog and digital semiconductors for consumer, commercial, and military electronics. The organization is well-positioned to reap the rewards of expanding the automotive and industrial sectors. In 2020, sales for Texas Instruments increased by 5%, reaching $14.38 billion.

Broadcom Inc. (AVGO)

Broadcom is a world leader in semiconductors for business storage, industrial applications, and wired and wireless communications. The firm is well-established in the corporate storage and networking industries and stands to gain from the expansion of cloud computing and 5G networks. In 2020, Broadcom had a 6% increase in sales, totaling $23.89 billion.

Conclusion

The expansion of electronic gadgets, cloud computing, and 5G technology all bode well for semiconductor companies, which are an integral part of the technology industry. Investment techniques such as value investing, growth investing, and income investing are all viable options for those looking to buy semiconductor stocks. But, investors should be aware of the semiconductor business's cyclical nature and the dangers posed by geopolitical unrest and rapid technological development.