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Broadcom–the combined entity of Broadcom and Avago–boasts a highly diverse product portfolio across an array of end markets. Avago focused primarily on radio frequency filters and amplifiers used in high-end smartphones, such as the Apple iPhone and Samsung Galaxy devices, in addition to an assortment of solutions for wired infrastructure, enterprise storage, and industrial end markets. Legacy Broadcom targeted networking semiconductors, such as switch and physical layer chips, broadband products (such as television set-top box processors), and connectivity chips that handle standards such as Wi-Fi and Bluetooth. The company has acquired Brocade, CA Technologies, and Symantec’s enterprise security business to bolster its offerings in infrastructure software.
Wolfspeed Inc is involved in the manufacturing of wide bandgap semiconductors. It is focused on silicon carbide and gallium nitride (GaN) materials and devices for power and radio-frequency (RF) applications. The company serves applications such as transportation, power supplies, inverters, and wireless systems. Geographically, it derives a majority of revenue from Europe and also has a presence in the United States; China; Japan; South Korea, and other countries.
Qualcomm develops and licenses wireless technology and designs chips for smartphones. The company’s key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G and 4G networks. The firm is a leader in 5G network technology as well. Qualcomm’s IP is licensed by virtually all wireless device makers. The firm is also the world’s largest wireless chip vendor, supplying nearly every premier handset maker with leading-edge processors. Qualcomm also sells RF-front end modules into smartphones and chips into automotive and Internet of Things markets.
KLA is a supplier of process control and yield management solutions for the semiconductor and related nano-electronics industries. Its products are mainly used in light-emitting diodes, power devices, compound semiconductor and data storage industries.
The company stock has an annual dividend yield of 2.26%. It has a market cap of $23.8 billion with over 1.9 million shares traded per day. This semiconductor stock has an EPS of $7.14 and a P/E ratio of 21.29. KLA has reported total revenue of $4.5 million in 2019.
In February 2020, KLA announced the Archer™ 750 imaging-based overlay metrology system and the SpectraShape™ 11k optical critical dimension metrology system for integrated circuit (IC) manufacturing. These new systems help IC manufacturers maintain strict controls of the complex processes required to bring high-performance memory and logic chips to market, for applications such as 5G, AI, data centers and edge computing.
Taiwan Semiconductor (XNYS:TSM)
Taiwan Semiconductor Manufacturing Company, or TSMC, is the world’s largest dedicated chip foundry, with over 58% market share in 2020 per Gartner. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public as an ADR in the U.S. in 1997. TSMC’s scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC. The foundry leader has an illustrious customer base, including Apple and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs.
Information technology is at the forefront of digital transformation. Computers, smartphones and smart TVs have become household items for millions of people around the world, and companies that design and develop semiconductors are the key catalysts driving that change. You can cash in on these new waves of innovation by investing in semiconductor stocks today.
Here’s a comprehensive guide to help you invest in the best semiconductor stocks on the stock market.
Overview: Semiconductor Stocks
From compact personal computers to giant data servers, companies from the semiconductor industry have had a major impact on individual consumers and multinational corporations. This presents a unique opportunity for you to choose a technology company that aligns with your stock portfolio.
Although it has only been a few decades since semiconductors like microchips and processors have come into the mainstream market, it has quickly risen to become one of the most traded components worldwide. With many of these tech companies launching flagship products every year, you can expect significant growth in your wealth by investing in these semiconductor stocks.
Best Online Brokers for Semiconductor Stocks
You can easily search and invest in semiconductors stocks on major stock exchanges with an online broker. These platforms give you access to advanced trading tools and educational resources to help you make investments that match your financial goals.
Benzinga has picked the best online brokers to get you started on your investment journey.
- Best ForIntermediate Traders and Investors
- Best ForDesktop Trading
- Best ForActive Traders
- Best ForGlobalAnalyst Product
- Best ForMomentum traders
- Best ForFutures Trading
Features to Look for in Semiconductor Stock
- Earnings per share: The earnings per share (EPS) of each stock gives you a fair assessment of the profit you make from your investment. It is calculated by dividing the net income of a company by the total number of its outstanding shares.
- Product innovation: The tech industry is teeming with new products and innovations that fuel the growth of semiconductor stocks. Be familiar with a company’s current line of products and its future roadmap before you invest.
- Yearly revenue: The competition is stiff among semiconductor stocks. Keep track of the total revenue generated each year by your preferred companies and compare them with others in the same category to find the best fit for your stock portfolio.
Tech Stocks for Trade
Many tech giants might still call Silicon Valley home but smaller and smarter semiconductor stocks are popping up in every major market hub you can find on the map. You can invest in these companies to improve the growth and gains of your portfolio.
Looking for semiconductor stocks by price? Check out our pages below.
- Stocks under $5 (Assumes price greater than $1)
- Stocks under $10 (Assumes price greater than $5)
- Stocks Under $20 ( Assumes price greater than $10)
Looking at stocks by industry? Review our other guides.
Don’t know where to start? Find a broker using Benzinga’s best brokerage guide.