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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. We illustrate the share performance of three semiconductor stocks – Advanced Micro Devices, Nvidia and Texas Instruments.
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' 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.
Nvidia
Nvidia, 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.
Texas Instruments
Texas Instruments 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 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.
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.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Advanced Micro Devices, Nvidia and Texas Instruments
For Immediate Release
Chicago, IL – July 29, 2022 – Today, Zacks Investment Ideas feature highlights Advanced Micro Devices (AMD - Free Report) , Nvidia (NVDA - Free Report) and Texas Instruments (TXN - Free Report) .
3 Chip Stocks Up Double-Digits in July
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. We illustrate the share performance of three semiconductor stocks – Advanced Micro Devices, Nvidia and Texas Instruments.
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' 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.
Nvidia
Nvidia, 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.
Texas Instruments
Texas Instruments 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 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.
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.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.