We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 Stocks to Buy on Upbeat Semiconductor Sales Forecast for 2024
Read MoreHide Full Article
Semiconductor sales were projected to start their rebound journey in 2023 after sales started suffering in the second half of last year and continued till the first quarter of this year. The predictions appear to fall in place, as semiconductor sales have been steadily increasing over the past few months.
Although sales are still down year over year, surging demand for semiconductors in multiple industries has once again started driving sales.
The Semiconductor Industry Association (SIA) said that global semiconductor sales totaled $46.6 billion in October, jumping 3.9% from September's total of $44.9 billion. This is the eighth straight month that semiconductor sales have been growing at a steady pace.
October’s jump comes after a solid third quarter, wherein sales increased 6.3%, totaling $134.7 billion, from the second quarter.
A supply-chain crisis following the pandemic, coupled with higher borrowing costs as a result of the Fed’s aggressive monetary tightening policy to curb inflation, negatively impacted demand. This resulted in a decline in sales.
However, with a steady decline in inflation, a noticeable rebound in sales was seen in the second quarter of 2023. The anticipation is that the trend of higher demand will persist throughout 2024, thereby contributing to a further increase in sales.
The World Semiconductor Trade Statistics (WSTS) projects a robust recovery in 2024, with an estimated surge of 13.1%. WSTS projects global semiconductor sales to reach $588.4 billion.
Separately, technology research and advisory firm IDC predicts a 20.2% year-over-year growth in semiconductor sales in 2024, driven by demand from AI server and end-point device manufacturers.
Qorvo, Inc. is a leading provider of core technologies and radio frequency (RF) solutions for mobile, infrastructure and aerospace/defense applications. QRVO’s reportable segments are Mobile Products (MP) and Infrastructure & Defense Products (IDP). MP supplies cellular RF and WiFi solutions to a variety of mobile devices, including smartphones, notebook computers, wearables, tablets, and cellular-based applications for the Internet of Things.
IDP’s products are used in high-performance defense systems such as radar, electronic warfare and communication systems, WiFi customer premises equipment for home and work, high-speed connectivity in Long-Term Evolution and 5G base stations, cloud connectivity via data center communications and telecom transport, automotive connectivity and smart home solutions.
Qorvo’s expected earnings growth rate for next year is 44.4%. The Zacks Consensus Estimate for current-year earnings has improved 10% over the past 60 days. QRVO presently carries a Zacks Rank #2.
NVIDIA Corporation is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, GPU. Over the years, NVDA’s focus has evolved from PC graphics to AI-based solutions that now support high-performance computing, gaming and virtual reality platforms.
NVIDIA’s GPU success can be attributed to its parallel processing capabilities supported by thousands of computing cores necessary to run deep-learning algorithms.
NVIDIA’s expected earnings growth rate for next year is 61.5%. The Zacks Consensus Estimate for current-year earnings has improved 14.4% over the past 60 days. NVDA presently has a Zacks Rank #2.
Intel Corporation is the world’s largest semiconductor company and the primary supplier of microprocessors and chipsets. INTC is gradually reducing its dependence on the PC-centric business by moving into data-centric businesses, such as AI and autonomous driving.
Intel Corporation’s expected earnings growth rate for next year is 97.9%. The Zacks Consensus Estimate for current-year earnings has improved 55.7% over the past 60 days. INTC presently carries a Zacks Rank #2.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
3 Stocks to Buy on Upbeat Semiconductor Sales Forecast for 2024
Semiconductor sales were projected to start their rebound journey in 2023 after sales started suffering in the second half of last year and continued till the first quarter of this year. The predictions appear to fall in place, as semiconductor sales have been steadily increasing over the past few months.
Although sales are still down year over year, surging demand for semiconductors in multiple industries has once again started driving sales.
The Semiconductor Industry Association (SIA) said that global semiconductor sales totaled $46.6 billion in October, jumping 3.9% from September's total of $44.9 billion. This is the eighth straight month that semiconductor sales have been growing at a steady pace.
October’s jump comes after a solid third quarter, wherein sales increased 6.3%, totaling $134.7 billion, from the second quarter.
A supply-chain crisis following the pandemic, coupled with higher borrowing costs as a result of the Fed’s aggressive monetary tightening policy to curb inflation, negatively impacted demand. This resulted in a decline in sales.
However, with a steady decline in inflation, a noticeable rebound in sales was seen in the second quarter of 2023. The anticipation is that the trend of higher demand will persist throughout 2024, thereby contributing to a further increase in sales.
The World Semiconductor Trade Statistics (WSTS) projects a robust recovery in 2024, with an estimated surge of 13.1%. WSTS projects global semiconductor sales to reach $588.4 billion.
Separately, technology research and advisory firm IDC predicts a 20.2% year-over-year growth in semiconductor sales in 2024, driven by demand from AI server and end-point device manufacturers.
Our Choices
Given this scenario, investing in semiconductor stocks like Qorvo, Inc. (QRVO - Free Report) , NVIDIA Corporation (NVDA - Free Report) and Intel Corporation (INTC - Free Report) seems ideal. Each of our picks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Qorvo, Inc. is a leading provider of core technologies and radio frequency (RF) solutions for mobile, infrastructure and aerospace/defense applications. QRVO’s reportable segments are Mobile Products (MP) and Infrastructure & Defense Products (IDP). MP supplies cellular RF and WiFi solutions to a variety of mobile devices, including smartphones, notebook computers, wearables, tablets, and cellular-based applications for the Internet of Things.
IDP’s products are used in high-performance defense systems such as radar, electronic warfare and communication systems, WiFi customer premises equipment for home and work, high-speed connectivity in Long-Term Evolution and 5G base stations, cloud connectivity via data center communications and telecom transport, automotive connectivity and smart home solutions.
Qorvo’s expected earnings growth rate for next year is 44.4%. The Zacks Consensus Estimate for current-year earnings has improved 10% over the past 60 days. QRVO presently carries a Zacks Rank #2.
NVIDIA Corporation is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, GPU. Over the years, NVDA’s focus has evolved from PC graphics to AI-based solutions that now support high-performance computing, gaming and virtual reality platforms.
NVIDIA’s GPU success can be attributed to its parallel processing capabilities supported by thousands of computing cores necessary to run deep-learning algorithms.
NVIDIA’s expected earnings growth rate for next year is 61.5%. The Zacks Consensus Estimate for current-year earnings has improved 14.4% over the past 60 days. NVDA presently has a Zacks Rank #2.
Intel Corporation is the world’s largest semiconductor company and the primary supplier of microprocessors and chipsets. INTC is gradually reducing its dependence on the PC-centric business by moving into data-centric businesses, such as AI and autonomous driving.
Intel Corporation’s expected earnings growth rate for next year is 97.9%. The Zacks Consensus Estimate for current-year earnings has improved 55.7% over the past 60 days. INTC presently carries a Zacks Rank #2.