Looking for the perfect investment opportunity? Well, consider venturing into the vibrant world of semiconductor stocks. Not only do these tech giants continue to drive progress in the modern world, they show no signs of slowing down. So if you’re looking for a place to invest in semiconductor stocks, you’re in the right place. Investing in these stocks can keep you on the pulse of the technological revolution. Below, you’ll find a curated list of three options worth considering.
Focusing on the domestic market is prudent and can ensure smart picks in semiconductor stocks. After all, international investing can be complicated, and as the legendary Warren Buffett once advised, “Never invest in a business you don’t understand.” So let’s narrow down our selection to three outstanding blue-chip chipmakers.
Starting at $1,000, it’s wise to allocate the bulk of your investment to confident picks while reserving appropriate portions for overlooked semiconductor giants. This strategic approach has the potential for significant gains. So don’t hesitate! Immerse yourself in the exciting world of semiconductor stocks and ride the wave of technological advancement to financial success.
Advanced Micro Semiconductor (AMD)
Investing in semiconductor stocks has become a hot topic, and one company that stands out is Advanced Micro DevicesCompany (NASDAQ:AMD). Despite stiff competition, AMD has staged an impressive comeback under the leadership of Chief Executive Officer (CEO) Dr. Lisa Su.
AMD’s recent earnings report shows why investors are bullish on the chipmaker. AMD solidified its position with quarterly revenue of $5.6 billion, up 16% year-over-year, and data center revenue soaring 42% to $1.7 billion. These impressive numbers support Su’s confidence in gaining market share in 2023.
AMD’s growth prospects are compelling. Despite slowing PC sales, the company’s margins remained strong, with a non-GAAP operating margin of 27% compared to the year-ago quarter Intel’s (NASDAQ:International Trade Centre) will grow by 12.6% by 2022. Plus, AMD is pivoting toward data center dominance, with $5.6 billion in revenue last year growing three times faster than its gaming division.
At the heart of AMD’s 2023 strategy is putting innovation above its roots. The upcoming Ryzen 7000-series processors are expected to boost performance. The Ryzen 7040 CPU series offers exceptional battery life, while Ryzen AI provides dedicated on-chip AI inferencing. Both of these will be extraordinary money-makers for the company’s future growth.
AMD’s latest MI300 accelerator is designed to meet the needs of cloud data centers, focusing on enabling large-scale AI applications.
For those considering investing in semiconductor stocks, AMD appears to be the favorite. With its relentless pursuit of newer, faster, more powerful components, AMD continues to widen its competitive moat. With stable inflation and a potential recovery in the PC market, the company’s long-term growth prospects remain attractive.
Investing the bulk of that $1,000 in AMD seems like a smart move for the US semiconductor specialist.
Intel (INTC)
Investing in semiconductor stocks, especially the booming market for artificial intelligence chips, presents a lucrative opportunity.Although Intel is rapidly emerging as a formidable competitor in the field Nvidia (NASDAQ:NVDA) currently dominates.
As demand for AI chips continues to soar, Intel’s strategic acquisition of Habana Labs in 2019 proved wise. While Habana’s Gaudi2 AI chip may not be able to top Nvidia’s H100 GPU in terms of raw performance, it offers an attractive value proposition. Intel aims to compete directly with the company with its upcoming Gaudi3 chip.
The MLPerf benchmark clearly shows that Nvidia’s H100 is the current leader, but Habana’s Gaudi2 chip still holds the lead. Although the performance of the H100 is three times higher than that of the Gaudi2, the latter’s software update will close the gap. Price/performance is critical in the AI space, and Gaudi2’s competitive pricing provides an attractive alternative to the Nvidia H100.
Intel has multiple avenues to capitalize on the AI boom. In addition to Habana’s chips, Intel’s Sapphire Rapids data center CPUs also integrate AI accelerators for inference tasks. Additionally, Intel’s data center GPUs power cutting-edge Aurora supercomputers. Intel is also aggressively pursuing advancements in its foundry business, which could secure future orders to make artificial intelligence chips.
While Nvidia currently dominates the data center GPU space, Intel’s Gaudi chip family should not be overlooked or underestimated. In the ongoing AI revolution, Intel is well-positioned to attract new customers with its compelling value proposition.
Investing in semiconductor stocks, including Intel, could be a strategic move to capitalize on growing demand for artificial intelligence chips. What’s more, you get established players like Intel. Anyone looking for places to invest in semiconductor stocks should start their research with Intel.
Micron Technology (MU)
Micron Technology (NASDAQ:mu), the leading maker of memory and storage chips, has quietly thrived amid the semiconductor boom. While the focus is on Nvidia and its artificial intelligence-centric graphics processors, Micron’s chips power smartphones, data centers and electric vehicles.
Despite its recent low profile, Micron stands to benefit greatly from the expanding artificial intelligence industry. Artificial intelligence servers require eight times more DRAM and three times the storage space than ordinary servers, which is a bright future for Micron Technology stock.
In the short term, Micron faces challenges in the consumer space due to the economic slowdown. Excess inventory led to lower prices, and Q2 FY2023 revenue fell sharply by 52% YoY. However, Micron has taken aggressive steps to reduce costs and personnel.
Encouragingly, Micron expects the peak of its inventory problems to have passed, suggesting imminent improvement in financial performance. Also, with its share price down double digits from its peak, now might be a good time for investors to get in the market.
Deciding where to invest in semiconductor stocks is an eternal problem. However, it’s important not to lose sight of Micron’s potential and the impending surge in demand for artificial intelligence. As a semiconductor stock, Micron Technology presents a unique investment opportunity poised to shine in the coming years.
If you’ve completed your list and want to further explore potential stock options, no need to worry. do not be afraid!
Ian Bezek has published a compelling article outlining seven of the best growth stocks investors should consider buying right now. Backed by research and expertise, Bezek provides valuable insights into the potential growth and profitability of these stocks, helping readers make informed investment decisions.
As of the date of this article, Faizan Farooque did not hold (directly or indirectly) any position in securities mentioned herein. The views expressed in this article are those of the author and in accordance with InvestorPlace.com Publishing Guidelines.