From freezers to computers, semiconductors allow the devices we rely on daily to work smoothly and efficiently.
Simply put, they’re absolutely critical.
Year-to-date, semiconductor stocks have tumbled. The chart below illustrates the share performance of three semiconductor stocks – Advanced Micro Devices (AMD - Free Report) , Nvidia (NVDA - Free Report) , and Texas Instruments (TXN - Free Report) .
As we can see, bears have been out in full force in 2022.
However, take a look at the three companies’ share performances in July.
Now that is what we’re talking about. All three companies’ shares have tacked on double-digit percentages in July, signaling that bulls have finally launched their counterattack. Favorable semiconductor legislation (CHIPS Act) has the industry hot as of late.
With semiconductor stocks reclaiming their former glory, let’s look at all three companies’ growth prospects and recent quarterly performance.
Advanced Micro Devices
Advanced Micro Devices’ (AMD - Free Report) product portfolio is extensive, including microprocessors, graphics processors, motherboard chipsets, and of course, personal computers. The company is currently a Zacks Rank #3 (Hold) with an overall VGM Score of a B.
AMD has stellar growth projections, further bolstered by its Style Score of an A for Growth – something any investor can get behind.
For the current fiscal year (FY22), the Zacks Consensus EPS Estimate resides at $4.35, reflecting a sizable 55% double-digit uptick in earnings year-over-year.
The growth doesn’t stop there – in FY23, earnings are projected to tack on an additional 12%, reflecting EPS of $4.84.
AMD’s top-line is also in incredible shape; the FY22 Zacks Consensus Sales Estimate has the company raking in $26.3 billion in revenue, good enough for an impressive 60% expansion within the top-line year-over-year.
Furthermore, AMD’s top-line is forecasted to expand a further 13% in FY23, reflecting annual sales of $29.6 billion.
The company has repeatedly topped estimates, chaining together eight consecutive top and bottom-line beats. The chart below illustrates the company’s revenue on a quarterly basis.
Nvidia
Nvidia (NVDA - Free Report) , another titan in the chip space, is credited as the inventor of the revolutionary and highly successful GPU (Graphic Processing Unit). The company is a Zacks Rank #4 (Sell) with an overall VGM Score of a C.
Nvidia has rock-solid projected growth, as displayed by its Style Score of a B for Growth. For the company’s current fiscal year (FY23), earnings are projected to soar a double-digit 21%.
In addition, Nvidia’s bottom-line is projected to expand a further 12% in FY24.
Top-line growth is also remarkable – annual sales are forecasted to climb to $33.7 billion in FY23, reflecting a solid 25% uptick year-over-year. Furthermore, the FY24 annual revenue projection of $37.8 billion pencils in an additional 12% uptick from FY23.
Top and bottom-line beats are the name of the game for the chip giant, chaining together a more than an impressive streak of 13 consecutive revenue and EPS beats. Below is a chart of Nvidia’s income on a quarterly basis.
Texas Instruments
Texas Instruments (TXN - Free Report) is an original equipment manufacturer of analog, mixed-signal, and digital signal processing (DSP) integrated circuits. TXN currently carries a Zacks Rank #3 (Hold) with an overall VGM Score of an A.
For the company’s current fiscal year (FY22), the Zacks Consensus EPS Estimate sits at $8.86, good enough for a solid 7.3% uptick in earnings year-over-year.
However, TXN’s bottom-line is forecasted to shrink by a modest 3% in FY23. The company has a Growth Style Score of an A.
Top-line projections paint the same picture; annual revenue is expected to grow by 9.4% in FY22 but decrease by 3.8% in FY23.
In addition, TXN has been on a blazing-hot earnings streak, exceeding the Zacks Consensus EPS Estimate in 16 consecutive quarters – undoubtedly impressive. Quarterly sales numbers have also been stellar; the company has recorded nine top-line beats over its last ten quarterly reports.
Bottom Line
Semiconductor stocks have been stellar investments over the last five years, as illustrated in the chart below that includes all companies mentioned above and the S&P 500 as a benchmark.
Year-to-date, it’s undoubtedly been a brutal stretch for many semiconductor stocks. However, buyers have stepped up significantly over the last month, driving shares upwards.
With the market regaining its footing amid a somewhat clearer economic outlook, chip stocks appear ready to explode.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
From freezers to computers, semiconductors allow the devices we rely on daily to work smoothly and efficiently.
Simply put, they’re absolutely critical.
Year-to-date, semiconductor stocks have tumbled. The chart below illustrates the share performance of three semiconductor stocks – Advanced Micro Devices (AMD - Free Report) , Nvidia (NVDA - Free Report) , and Texas Instruments (TXN - Free Report) .
As we can see, bears have been out in full force in 2022.
However, take a look at the three companies’ share performances in July.
Now that is what we’re talking about. All three companies’ shares have tacked on double-digit percentages in July, signaling that bulls have finally launched their counterattack. Favorable semiconductor legislation (CHIPS Act) has the industry hot as of late.
With semiconductor stocks reclaiming their former glory, let’s look at all three companies’ growth prospects and recent quarterly performance.
Advanced Micro Devices
Advanced Micro Devices’ (AMD - Free Report) product portfolio is extensive, including microprocessors, graphics processors, motherboard chipsets, and of course, personal computers. The company is currently a Zacks Rank #3 (Hold) with an overall VGM Score of a B.
AMD has stellar growth projections, further bolstered by its Style Score of an A for Growth – something any investor can get behind.
For the current fiscal year (FY22), the Zacks Consensus EPS Estimate resides at $4.35, reflecting a sizable 55% double-digit uptick in earnings year-over-year.
The growth doesn’t stop there – in FY23, earnings are projected to tack on an additional 12%, reflecting EPS of $4.84.
AMD’s top-line is also in incredible shape; the FY22 Zacks Consensus Sales Estimate has the company raking in $26.3 billion in revenue, good enough for an impressive 60% expansion within the top-line year-over-year.
Furthermore, AMD’s top-line is forecasted to expand a further 13% in FY23, reflecting annual sales of $29.6 billion.
The company has repeatedly topped estimates, chaining together eight consecutive top and bottom-line beats. The chart below illustrates the company’s revenue on a quarterly basis.
Nvidia
Nvidia (NVDA - Free Report) , another titan in the chip space, is credited as the inventor of the revolutionary and highly successful GPU (Graphic Processing Unit). The company is a Zacks Rank #4 (Sell) with an overall VGM Score of a C.
Nvidia has rock-solid projected growth, as displayed by its Style Score of a B for Growth. For the company’s current fiscal year (FY23), earnings are projected to soar a double-digit 21%.
In addition, Nvidia’s bottom-line is projected to expand a further 12% in FY24.
Top-line growth is also remarkable – annual sales are forecasted to climb to $33.7 billion in FY23, reflecting a solid 25% uptick year-over-year. Furthermore, the FY24 annual revenue projection of $37.8 billion pencils in an additional 12% uptick from FY23.
Top and bottom-line beats are the name of the game for the chip giant, chaining together a more than an impressive streak of 13 consecutive revenue and EPS beats. Below is a chart of Nvidia’s income on a quarterly basis.
Texas Instruments
Texas Instruments (TXN - Free Report) is an original equipment manufacturer of analog, mixed-signal, and digital signal processing (DSP) integrated circuits. TXN currently carries a Zacks Rank #3 (Hold) with an overall VGM Score of an A.
For the company’s current fiscal year (FY22), the Zacks Consensus EPS Estimate sits at $8.86, good enough for a solid 7.3% uptick in earnings year-over-year.
However, TXN’s bottom-line is forecasted to shrink by a modest 3% in FY23. The company has a Growth Style Score of an A.
Top-line projections paint the same picture; annual revenue is expected to grow by 9.4% in FY22 but decrease by 3.8% in FY23.
In addition, TXN has been on a blazing-hot earnings streak, exceeding the Zacks Consensus EPS Estimate in 16 consecutive quarters – undoubtedly impressive. Quarterly sales numbers have also been stellar; the company has recorded nine top-line beats over its last ten quarterly reports.
Bottom Line
Semiconductor stocks have been stellar investments over the last five years, as illustrated in the chart below that includes all companies mentioned above and the S&P 500 as a benchmark.
Year-to-date, it’s undoubtedly been a brutal stretch for many semiconductor stocks. However, buyers have stepped up significantly over the last month, driving shares upwards.
With the market regaining its footing amid a somewhat clearer economic outlook, chip stocks appear ready to explode.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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