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With several interesting trends like the Internet of Things and artificial intelligence on the rise, it is an exciting time to be investing in the technology sector. What’s more, it is also a profitable time to be a tech-focused investor, as this space has been among the strongest performing sectors all year.

And while the behemoths like Microsoft (MSFT - Free Report) and Apple (AAPL - Free Report) may hog all the headlines, it’s really been the companies powering their technologies—the semiconductor manufacturers—that have had a strong year on the markets.

Indeed, as our Computer and Technology sector has gained nearly 19% year-to-date, semiconductor companies have been a driving factor behind its growth. The aforementioned emerging tech trends have created new consumer demand, and the semiconductor makers are delivering.

Luckily, the proven Zacks stock picking methods are effective across all industries. Check out these Zacks Rank #1 (Strong Buy) semiconductor stocks right now:

1.       Micron Technology (MU - Free Report)

Micron is one of the leading worldwide providers of semiconductor memory solutions. The company’s memory solutions are marketed towards customers in a variety of industries, including computer manufacturing, consumer electronics, and telecommunications.

Shares of Micron are up over 49% year-to-date, and the stock is one of Wall Street’s most talked about. This is owed directly to the company’s incredible growth rates on the top and bottom lines. In fact, our current consensus estimates are calling for quadruple-digit EPS growth and 80% sales growth this quarter. MU is also sporting an “A” grade for Value, which is underscored by its impressive P/E ratio of just 5.37 and its P/S ratio of 2.08.

 

2.       Lam Research Corporation (LRCX - Free Report)

Lam Research is a designer and manufacturer of semiconductor processing equipment used in the fabrication of integrated circuits. The company is recognized as a leading supplier of front-end wafer processing equipment to the worldwide semiconductor industry.

Lam continued its impressive earnings momentum with another beat in the most recent quarter, and we’ve seen positive estimate revisions for its upcoming fiscal periods pour in since then. In fact, the company’s full-year Zacks Consensus Estimate has gained nearly $1.50 over the past 60 days. On top of this solid earnings-related data, LRCX is also sporting “B” grades in the Value and Growth categories.

 

3.       Nvidia Corporation (NVDA - Free Report)

If you’ve been paying attention to this space at all lately, you probably already know that Nvidia has emerged as one of Wall Street’s most exciting growth prospects over the past year. Shares of this remarkable graphics chip manufacturer have soared more than 58% in 2017 alone, and so long as the tech sector stays hot, Nvidia is showing very few signs of slowing down.

For one, the Zacks Consensus Estimate is currently calling for EPS growth of 40.13% this fiscal year. Nvidia has also surpassed our consensus estimate by an average of 35% in each of the trailing four quarters, so it would hardly be a surprise if the company outperformed again, surpassing this expected growth rate in the process. Nvidia’s estimate revision activity has also been incredibly strong recently, and overall, the company is benefitting from new demand in emerging markets like cryptocurrency mining, self-driving cars, and AI.

 

Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>



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