Over the past few years, investors have been showing much interest in semiconductor stocks flourishing over the past few years. The pandemic led to the exponential growth of the semiconductor companies that generated record revenue. The work from home mandate issued during the pandemic triggered massive demand for electronic devices. Although the pandemic is now receding, the demand for electronic devices such as laptops, TVs, mobile phones, and automobiles increases every year. Due to the supply chain constraints, the prices of chips are also rising. Naturally, investors are keen to add some of the best semiconductor stocks to their portfolio with vast potential to provide high returns in the next few years.
Here is a semiconductor stocks list that includes some companies that investors closely follow.
ASML Holding ranks among the promising semiconductor stocks
ASML Holding is a notable name in the semiconductor industry and is engaged in manufacturing complex lithographic systems used in the semiconductor industry to make chips. Various semiconductor companies are customers of ASML Holding, the only company to make EUV (Extreme UltraViolet) lithographic machines. Currently, the stock is trading at $573.04, which is lower than the trading price of January 02, when it was trading at $792.84. The current Russia- Ukraine conflict is a significant reason for the decline in stock price, which should see a reversal when the tensions subside. Over the past year, ASML stocks were among the top semiconductor stocks, and their price went up by 55%. The company expects the semiconductor industry to further boost due to the global megatrends in the electronic industry.
ASE Technology Holding Company Ltd (ASX: NYSE)
Investors looking for cheap semiconductor stocks can explore Taiwan-based ASE Technology Holding Company Ltd engaged in semiconductor design, production, and packaging interconnect materials. Currently, the stock is trading at $6.99 as of March 8, 7.00 pm EST. Since the stocks began trading in 2018, it has risen by 33%, and the company posted consistent revenue while recording a growth from $8.47 billion to $$20 billion between 2016 and 2020. In the past three years, the growth has been 17% CAGR. The current dividend yields are 3.81% that the company distributes annually, and the expected growth in 2022 is 11% based on a forward P/E of 10.45. Alpha’s Quant Raring score for the share is 4.63, which is excellent.
Micron Technology, Inc. (MU: NASDAQ)
The American company produces a wide range of products like SSD drives, DRAM modules, memory cards, and more for consumers and businesses. The company is on the radar of investors and experts closely following semiconductor stocks. Between 2016 and 2021, the company’s revenue grew from $20 billion to $27 billion, but sales fell between 2018 and 2020. The company paid the first dividend every quarter with yields of 0.21%. Against the forward P/E of 10.90, analysts are optimistic about substantial growth in the coming years, with 47% EPS growth in 2022 and 27% in the next year.
You can decide to invest in any of these three semiconductor stocks. Your chance of making a profit will certainly be higher, to say the least.
