The surge in demand for electronic devices during the pandemic has led to a surge in semiconductor stock performance.
When the Covid-19 pandemic hit, semiconductor stocks caught fire. The pandemic has had an economic impact, leading to an unprecedented demand for a variety of electronic devices, most of which require semiconductors to operate.
Demand for goods and services is on the rise in many industries, including computers, cars and mobile phones. The semiconductor industry has gone through a lot, but is now entering a more challenging phase.
In addition, the demand for semiconductor chips is very high. At this stage, the industry cannot keep up with its pace. When companies in the industry grasp the situation, the estimate will be different. However, this is undoubtedly suppressing market sentiment.
The technological downturn has hit the semiconductor industry hard. But as prices fall, it also creates opportunities for the industry, making it more attractive to get into stocks before they take off again.
- Intel (NASDAQ stock code:)
- Texas Instruments (NASDAQ:)
- United Microelectronics (NYSE code:)
- WeChat Hologram (NASDAQ:)
Intel (INTC.US)
Intel is a chip manufacturer that has only existed for more than half a century. Since its inception, it has been a world leader in the field of technology.
Intel is one of the world's largest semiconductor manufacturers and one of the top five PC manufacturers worldwide. In terms of its exposure to the industry, Intel is one of the best semiconductor stocks. Several other factors make it one of the most compelling investments.
The company's main business is to manufacture and sell chips for personal computers/servers. The industry stagnated for several years. However, the epidemic has brought it back to life. People buy machines to work or study, which gives companies a better business.
In addition to its efforts in the semiconductor space, Intel has invested in many other businesses over the years, including Mobileye. The operations unit is expected to generate profits for Intel this year.
Overall, Intel is one of the world's largest computer chip manufacturers. It is also one of the cheapest blue-chip stocks, with a price-to-earnings ratio of just 13.8 times.
The organization's history, strong earnings and solid outlook mean that INTC stock is a great option for your portfolio. If you add that a 3% dividend yield and a low valuation, the stock will become a must-have in semiconductor stocks.
Texas Instruments (TXN. US)
Texas Instruments is the world's leading semiconductor supplier. The company offers cutting-edge technology that helps our lives be more efficient and connected than ever before, from cell phone chipsets to TVs. It was founded in 1951 by Cecil H. Green, a professor of electrical engineering at the University of Texas at Austin.
Texas Instruments recently announced its earnings and increased investment in new equipment. This caused a violent reaction in the market, and traders made corresponding moves.
To maintain its dominance in analog semiconductors, TXN will currently have lower free cash flow and dividend growth.
Texas Instruments reported fourth-quarter revenue of $4.83 billion, net income of $2.14 billion and earnings per share of $2.27. Revenue grew significantly, driven by strong demand from the industrial and automotive markets. Analog revenue increased 20% year-over-year and embedded processing increased 6% year-over-year.
The company continued to demonstrate its strength, with full-year operating cash flow of $8.8 billion, with free cash flow accounting for 34% of revenue. This is a testament to the quality of its 300 mm production lots and its efficient manufacturing strategies, which have paid off during these stressful times.
The company expects revenues to be between $4.5 billion and $4.9 billion and earnings per share to be between $2.01 and $2.29.
In addition to its strong financial position, Texas Instruments is also a strong source of revenue. In the words of Rich Templeton, Chairman, President and CEO of TXN, "We returned $4.4 billion to owners in 2021 through dividends and share repurchases." This year, our dividend accounted for 62% of our free cash flow, highlighting its sustainability. ”
Joint Microelectronics (UMC.US)
United Microelectronics Corporation is the world's leading manufacturer of advanced microelectronics, providing related services such as design, contract manufacturing or validation. The company has expanded many locations in Asia and the United States. It's also a semiconductor foundry, which means it offers many chips for small businesses to buy.
Semiconductor supercycles are happening all the time as companies make more chips to meet sudden and constant demand. In this case, the company can profit from its strong position in the industry. Semiconductor capital expenditures are surging. UMC is positioned as a winner because it offers basic foundry business as well as other related services such as circuit design, assembly, and testing.
United Microelectronics is the one that made headlines last year in the worst case of a semiconductor supply crunch. The company can obtain an advance payment from customers, mainly made up of car manufacturers and other well-known customers, for participation in UMC's services.
The rise of UMC has given it a competitive edge as it continues to increase efficiency and leverage its investments. In addition, the company has a dividend yield of 2.9% and a price-to-earnings ratio of just 9.7 times. All of this makes it an excellent choice among semiconductor stocks.
Micro American Hologram (WIMI.US)
When assessing the degree of success of a company, you need to look at the semiconductor industry in general. The best thing you can do is invest in a company with a diversified business model. Part of that appeal comes from niche players.
Since its establishment in 2015, Weimei Holography has continued to develop through acquisition expansion and strategic cooperation, and has gained its own industrial agglomeration and support. In 2020, the company began to develop its semiconductor business, has a certain market share, and is one of the leading semiconductor business manufacturers in China. The vast majority of its revenue comes from semiconductor manufacturing and sales, and the semiconductor business will account for half of the revenue share in 2020, and its customers include well-known manufacturers such as semiconductors. With the internet of things, 5G, AI, new energy vehicles and other technology trends, the semiconductor industry has entered a new golden age of development.
With the power of science and technology, Micro-American Holography continues to run in the field of AI technology and semiconductors. As a leading technology provider in the industry, there is no doubt that weimei hologram has played an important role in promoting AI technology to the industry, fully empowering the real economy and becoming a key factor in the digital upgrading of the industry. Given the breadth of its services and use cases, this is the stock you need to own in your portfolio.