The semiconductor industry has been vital to our everyday lives for many years. However, the importance of specialized companies is increasing rapidly as more smart devices are developed and the many ways devices communicate with one another. As an investor, there are many different investment opportunities to look into when you think about the semiconductor industry. Whether you’re looking for diversification in your portfolio or want to invest heavily in semiconductor stock, here are some companies that stand out and can be considered worthy investments.
Nvidia’s steady climb on Wall Street has finally brought them to be the leader of the semiconductor industry in the United States. The company began designing chips for computer gaming and has evolved into designing them for various artificial intelligence applications. Between 2016 and 2020, Nvidia’s net income skyrocketed by more than 350%. One of the main reasons is because Nvidia’s capital requirements are much less than other major semiconductor manufacturing companies, which equals greater profits. Nvidia’s high valuation may deter some investors, but others may pursue the investment opportunities presented based on the growth trajectory.
Advanced Micro Devices
Advanced Micro Devices (AMD) is the leader in designing microprocessors, but the company does not manufacture them. The two areas of most significant growth for AMD over the past several years include gaming chips and microprocessors, which have elevated the company to present some incredible investment opportunities. AMD only has a hold on a small percentage of the microprocessor chip market, so there’s still plenty of room for growth. The stock futures look very promising for AMD as a result, and many investors are taking a close look at them as a result.
Investors looking for investment opportunities in 5G communications should take a close look at Qualcomm. Even though Qualcomm is a giant when it comes to suppliers of mobile communication chips, its valuation is still reasonable, and many experts believe there’s plenty of room for growth. Discussions and movements about 5G communications will be the hot topic over the next several years, and expect Qualcomm to be at the center of them.
Intel has long been a giant on Wall Street when it comes to semiconductor stocks. However, due to various issues with some of its designing and manufacturing, the company has been passed up by competitors like Nvidia and AMD. The one thing Intel has going for them still is their name. They also have a solid balance sheet with more than $25 billion in cash, so an acquisition is something to watch for. Intel’s trend has been downward over the last several years but could quickly be revamped if a change is made.
Stock Investing Info helps investors decide which types of stocks fit their portfolio the best. Diversification is an essential factor, so it’s important not to put all of your money into one particular company. The semiconductor industry is worth looking at closely, so contact us if you have any questions or would like more information.