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The Zacks Analyst Blog Highlights NVIDIA, Taiwan Semiconductor and Semtech
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For Immediate Release
Chicago, IL – November 8, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corp. (NVDA - Free Report) , Taiwan Semiconductor Manufacturing Company Ltd. (TSM - Free Report) and Semtech Corp. (SMTC - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
AI Optimism Driving Semiconductor Sales: 3 Stocks with Room to Run
The global semiconductor industry is witnessing a strong recovery phase after sales suffered in 2023. The rebound is being fueled by advancements in artificial intelligence (AI) technologies, data processing, and a resurgence in electronics manufacturing, which are driving market demand.
Also, the semiconductor industry, which is part of the broader technology sector, is poised to grow further as the Fed goes for more rate cuts. Given the promising future, investing in semiconductor stocks like NVIDIA Corp., Taiwan Semiconductor Manufacturing Company Ltd. and Semtech Corp. should be a wise decision. Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy) or #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here.
Semiconductor Sales Soar
The Semiconductor Industry Association (SIA) said on Tuesday that global semiconductor sales totaled $166 billion in the third quarter, up 23.3% year over year and 10.7% sequentially.
Month over month, semiconductor sales jumped 4.1% in September, totaling $55.3 billion.
SIA President and CEO John Neuffer said, "The global semiconductor market continued to grow during the third quarter of 2024, with quarter-to-quarter sales increasing at the largest rate since 2016," adding, "Sales in September reached the market's highest-ever monthly total, driven by a 46.3% year-to-year increase in the Americas."
The ongoing enthusiasm surrounding AI, especially generative AI, is driving demand for semiconductors. The robust performance by tech that has been responsible for this year's broader market rally is largely fueled by NVIDIA, which has emerged as a market leader in the generative AI space, sparking a wave of interest and progress in this area.
Semiconductor Stocks to Benefit from AI Enthusiasm
Experts believe AI has significant untapped potential, with much more to be explored. The soaring enthusiasm is expected to drive further demand as more semiconductor manufacturers enter the AI market.
AI-specific chips have become crucial as their applications grow across various industries, from high-performance computing to everyday consumer devices. Also, memory components like NAND flash and DRAM have been witnessing a rebound in demand, meeting more specialized computing needs and supporting AI-heavy tasks.
According to Gartner, global semiconductor revenues are projected to hit $630 billion in 2024, increasing 19% year over year. NAND flash, which is key in AI systems, is expected to see a solid 12% jump in revenues by 2025, driven in part by continued supply shortage and growing demand for AI applications.
The Federal Reserve cut interest rates by 50 basis points in September, the first since March 2020. The current benchmark policy rate is in the range of 4.75-5%, the lowest level since April 2023. Market participants now are expecting the Fed to cut interest rates by 25 basis points today at the end of its November policy meeting. Lower interest rates generally benefit growth assets by reducing the opportunity cost of holding non-yielding assets, such as technology and semiconductor stocks.
3 Semiconductor Stocks Poised to Grow
NVIDIA Corporation
NVIDIA Corporationis the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or 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 Corporation's expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings improved 0.7% over the past 60 days. NVDA presently has a Zacks Rank #2.
Taiwan Semiconductor Manufacturing Company Limited
Taiwan Semiconductor Manufacturing Company Limited is the world's largest dedicated integrated circuit foundry. As a foundry, TSM manufactures ICs for its customers based on their proprietary IC designs using its advanced production processes. Taiwan Semiconductor Manufacturing Company Limited's goal is to establish itself as one of the world's leading semiconductor companies by building upon the strengths that have made it the world's leading IC foundry.
Taiwan Semiconductor Manufacturing Company Limited's expected earnings growth rate for the current year is 28%. The Zacks Consensus Estimate for current-year earnings has improved 2.8% over the past 60 days. TSM presently carries a Zacks Rank #2.
Semtech Corporation
Semtech Corporation designs, manufactures and markets a wide range of analog and mixed-signal semiconductors for commercial applications. SMTC's product line comprises Signal Integrity Products, Protection Products, Power and High-Reliability Products, Wireless and Sensing Products, and Systems Innovation Group.
Semtech's expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings improved 6.3% over the past 90 days. SMTC presently carries a Zacks Rank #3.
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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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The Zacks Analyst Blog Highlights NVIDIA, Taiwan Semiconductor and Semtech
For Immediate Release
Chicago, IL – November 8, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corp. (NVDA - Free Report) , Taiwan Semiconductor Manufacturing Company Ltd. (TSM - Free Report) and Semtech Corp. (SMTC - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
AI Optimism Driving Semiconductor Sales: 3 Stocks with Room to Run
The global semiconductor industry is witnessing a strong recovery phase after sales suffered in 2023. The rebound is being fueled by advancements in artificial intelligence (AI) technologies, data processing, and a resurgence in electronics manufacturing, which are driving market demand.
Also, the semiconductor industry, which is part of the broader technology sector, is poised to grow further as the Fed goes for more rate cuts. Given the promising future, investing in semiconductor stocks like NVIDIA Corp., Taiwan Semiconductor Manufacturing Company Ltd. and Semtech Corp. should be a wise decision. Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy) or #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here.
Semiconductor Sales Soar
The Semiconductor Industry Association (SIA) said on Tuesday that global semiconductor sales totaled $166 billion in the third quarter, up 23.3% year over year and 10.7% sequentially.
Month over month, semiconductor sales jumped 4.1% in September, totaling $55.3 billion.
SIA President and CEO John Neuffer said, "The global semiconductor market continued to grow during the third quarter of 2024, with quarter-to-quarter sales increasing at the largest rate since 2016," adding, "Sales in September reached the market's highest-ever monthly total, driven by a 46.3% year-to-year increase in the Americas."
The ongoing enthusiasm surrounding AI, especially generative AI, is driving demand for semiconductors. The robust performance by tech that has been responsible for this year's broader market rally is largely fueled by NVIDIA, which has emerged as a market leader in the generative AI space, sparking a wave of interest and progress in this area.
Semiconductor Stocks to Benefit from AI Enthusiasm
Experts believe AI has significant untapped potential, with much more to be explored. The soaring enthusiasm is expected to drive further demand as more semiconductor manufacturers enter the AI market.
AI-specific chips have become crucial as their applications grow across various industries, from high-performance computing to everyday consumer devices. Also, memory components like NAND flash and DRAM have been witnessing a rebound in demand, meeting more specialized computing needs and supporting AI-heavy tasks.
According to Gartner, global semiconductor revenues are projected to hit $630 billion in 2024, increasing 19% year over year. NAND flash, which is key in AI systems, is expected to see a solid 12% jump in revenues by 2025, driven in part by continued supply shortage and growing demand for AI applications.
The Federal Reserve cut interest rates by 50 basis points in September, the first since March 2020. The current benchmark policy rate is in the range of 4.75-5%, the lowest level since April 2023. Market participants now are expecting the Fed to cut interest rates by 25 basis points today at the end of its November policy meeting. Lower interest rates generally benefit growth assets by reducing the opportunity cost of holding non-yielding assets, such as technology and semiconductor stocks.
3 Semiconductor Stocks Poised to Grow
NVIDIA Corporation
NVIDIA Corporationis the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or 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 Corporation's expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings improved 0.7% over the past 60 days. NVDA presently has a Zacks Rank #2.
Taiwan Semiconductor Manufacturing Company Limited
Taiwan Semiconductor Manufacturing Company Limited is the world's largest dedicated integrated circuit foundry. As a foundry, TSM manufactures ICs for its customers based on their proprietary IC designs using its advanced production processes. Taiwan Semiconductor Manufacturing Company Limited's goal is to establish itself as one of the world's leading semiconductor companies by building upon the strengths that have made it the world's leading IC foundry.
Taiwan Semiconductor Manufacturing Company Limited's expected earnings growth rate for the current year is 28%. The Zacks Consensus Estimate for current-year earnings has improved 2.8% over the past 60 days. TSM presently carries a Zacks Rank #2.
Semtech Corporation
Semtech Corporation designs, manufactures and markets a wide range of analog and mixed-signal semiconductors for commercial applications. SMTC's product line comprises Signal Integrity Products, Protection Products, Power and High-Reliability Products, Wireless and Sensing Products, and Systems Innovation Group.
Semtech's expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings improved 6.3% over the past 90 days. SMTC presently carries a Zacks Rank #3.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
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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.