Monday, May 2, 2022

Investing in Semiconductor Stocks

  • " the semiconductor sector is growing rapidly as the world enters a digital-first era in the wake of COVID-19. In fact, the industry’s largest chip company (as measured by annual revenue) Intel (NASDAQ:INTC) said recently it sees global spending on semiconductors reaching $1 trillion per year by the end of the 2020s, roughly double where it is today."
  • "In the U.S. -- which accounted for almost half of the $440 billion in global semiconductor spending in 2020, according to the Semiconductor Industry Association -- semiconductor chips are now the nation’s fourth-largest export."
  • "Skyworks Solutions (NASDAQ:SWKS) is a leader in connectivity."
  • "This company is a key Apple (NASDAQ:AAPL) supplier, having profited from the smartphone boom over the past decade. That market has matured in recent years, but Skyworks has used its connectivity chip know-how to expand into new areas such as the Internet of Things, Wi-Fi chips, and 5G networks."
  • "

"Nvidia

  • This semiconductor chip company is the industry's leading GPU maker. Nvidia (NASDAQ:NVDA) is also earning higher-than-average profit margins and using that money to invest in research and product development, pursue new markets, and expand revenue.""

  • ". It completed its acquisition of the data-center networking and connectivity company Mellanox in early 2020. Its acquisition of chip design licensor ARM Holdings from Softbank (OTC:SFTBF) was pending regulatory approval as of late 2021, and doubt has arisen over the deal going through."

  • ""Two top semiconductor ETFs are:

    • iShares Semiconductor ETF (NASDAQ:SOXX): This ETF contains 30 chip companies, has an annual expense ratio of 0.43%, and manages more than $7.6 billion in assets.
    • VanEck Vectors Semiconductor ETF (NASDAQ:SMH): This fund owns 25 stocks encompassing semiconductor chip companies from around the globe. It has an annual expense ratio of 0.35% and manages $6.5 billion in assets.""

Identifying the best semiconductor stocks.

1. Sustainable revenue growth

2. Above-average profit margins

3. Attractive returns on invested capital


4. Strong balance sheets.

Special::"""semiconductor companies in this area -- like the world’s largest chip manufacturer Taiwan Semiconductor Manufacturing (NYSE:TSM) -- obtain the necessary
 financial resources to expand.""
""YOU CAN KNOW MORE FROM https://www.fool.com/
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Description

Taiwan Semiconductor Manufacturing Company, Limited is a Taiwanese multinational semiconductor contract manufacturing and design company. Wikipedia
Founder: Morris Chang
CEO: C. C. Wei (Nov 12, 2013–)
Headquarters: Hsinchu, Taiwan
Number of employees: 54,193 (2022)
Revenue: 362.4 billion TWD (Q1 2021)
Subsidiaries: WaferTech, LLCMORE
current.$94 nearly. 52 weeks 90/145
mkt.cap.486b. p.3. 24. volume 7 m
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