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【XM Forex】--The Best Semiconductor Stocks to Buy Now
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Hello everyone, today XM Forex will bring you "【XM Forex】--The Best Semiconductor Stocks to Buy Now". I hope it will be helpful to you! The original content is as follows:
What Are Semiconductor Stocks?
Semiconductor stocks refer to publicly listed xmcnglobal.companies that design and manufacture xmcnglobal.computer chips, also known as semiconductors. They are an essential xmcnglobal.component in today’s world, as they power everything from cars to consumer electronics, from telecommunication to energy, and from defense to artificial intelligence.
A semiconductor is a material with electrical conductivity to regulate electrical currents, embedded with tiny circuits. Without semiconductors, we would have xmcnglobal.computer chips with the most basic functions. The sophistication of semiconductors ranges from simple ones that power kitchen appliances to cutting-edge graphics processing units (GPUs) required by artificial intelligence (AI) and defense solutions.
Why Should You Consider Buying Semiconductor Stocks?
Semiconductor stocks drive the global economy, and the integration of AI, xmcnglobal.combined with the recent boost in defense spending, will continue to fuel growth. Some investors xmcnglobal.compare semiconductor xmcnglobal.companies to the internet xmcnglobal.companies during the Dot-Com boom and bust, which have created today’s Magnificent Seven.
Here are a few things to consider when evaluating semiconductor stocks:
- Semiconductors are at the forefront of technological innovation, including AI and quantum xmcnglobal.computing
- Investors must brace for volatility
- Cyclical cycles will impact the share price of semiconductor stocks
- The regulatory landscape is bound to change and adapt
- Most semiconductor stocks have excessive valuations
What Are the Downsides to Semiconductor Stocks?
Many countries consider semiconductors a national security item, as evident in the Sino-US geopolitical tensions. The industry also relies heavily on Taiwan, with a small but significant factor from the Netherlands. Therefore, supply chain disruptions can distort the investment landscape. High research and development costs, as well as the difficulty and expense of fabrication plants, create tremendous barriers for new entrants hoping to disrupt the sector. Additionally, each significant R&D breakthrough can render previous chips obsolete.
Here is a shortlist of semiconductor stocks to evaluate:
- Broadcom (AVGO)
- AMD (AMD)
- Samsung (005930.KS)
- ASML (ASML)
- Taiwan Semiconductor Manufacturing (TSM)
- Qualcomm (QCOM)
- Arm Holdings (ARM)
- Texas Instruments (TXN)
- Nvidia (NVDA)
- Applied Materials (AMAT)
- Coherent (COHR)
- Microchip Technology (MCHP)
- Rambus (RMBS)
- Allegro Microsystems (ALGM)
- NXP Semiconductors (NXPI)
ASML Fundamental Analysis
ASML (ASML) has a monopoly on extreme ultraviolet lithography (EUVL) photolithography machines, which are necessary for manufacturing the world’s most advanced chips. It is also a constituent of the NASDAQ 100 and Euro STOXX 50 equity indices.
So, why am I bullish on ASML despite its recent underperformance?
ASML is a core player in the semiconductor industry as the sole manufacturer of EUVLs. It manufactures the tiniest and most advanced chips, and the success of many Western AI stocks depends on machines manufactured by ASML. It counts customers like Taiwan Semiconductor Manufacturing and Samsung among its top clients.
ASML Fundamental Analysis Snapshot
Metric
Value
Verdict
P/E Ratio
25.77
Bullish
P/B Ratio
13.82
Bearish
PEG Ratio
1.45
Bullish
Current Ratio
1.41
Bearish
Return on Assets
19.14%
Bullish
Return on Equity
43.78%
Bullish
Profit Margin
29.31%
Bullish
ROIC-WACC Ratio
Positive
Bullish
Dividend Yield
1.06%
Bearish
The price-to-earnings (P/E) ratio of 25.77 makes ASML an inexpensive stock. By xmcnglobal.comparison, the P/E ratio for the NASDAQ 100 is 42.02.
The average analyst price target for ASML is 841.65. It suggests excellent upside potential from current levels.
ASML Technical Analysis
- The ASML D1 chart shows price action between its ascending 50.0% and 61.8% Fibonacci Retracement Fan.
- It also shows ASML trading inside of a horizontal resistance zone.
- The Bull Bear Power Indicator turned bullish and has been improving over the past four weeks.
My Call
I am taking a long position in ASML between 701.19 and 730.60. The ASML valuation is inexpensive, especially for a semiconductor stock, and investors can buy the growth of several semiconductor titans with ASML. I like the outlook, but volatility could dominate the share price. Still, I recommend buying the dip.
Qualcomm Fundamental Analysis
Qualcomm is a semiconductor and software xmcnglobal.company catering to wireless technology. It owns patents vital to mobile xmcnglobal.communications standards 5G, 4G, CDMA2000, TD-SCDMA, and WCDMA. It has also begun expanding into non-mobile sectors to persify its business. It is also a member of the NASDAQ 100, S&P 100, and the S&P 500.
So, why am I bullish on QCOM despite its recent struggles?
I like QCOM for its plans to design custom processors xmcnglobal.compatible with NVIDIA AI chips, allowing xmcnglobal.complete integration. I also appreciate its move into the automotive sector, IoT-related business, and PCs. It should more than positively offset the pending loss of Apple as a customer for its mobile segment in 2027. Additionally, Sino-US relationships could provide a boost to its share price, given the QCOM exposure to China. The valuations are ridiculously cheap, making QCOM an under-the-radar semiconductor play.
Qualcomm Fundamental Analysis Snapshot
Metric
Value
Verdict
P/E Ratio
14.24
Bullish
P/B Ratio
5.85
Bearish
PEG Ratio
1.69
Bullish
Current Ratio
3.19
Bullish
Return on Assets
21.10%
Bullish
Return on Equity
42.55%
Bullish
Profit Margin
26.77%
Bullish
ROIC-WACC Ratio
Positive
Bullish
Dividend Yield
2.44%
Bearish
The price-to-earnings (PE) ratio of 14.24 makes QCOM an inexpensive stock. By xmcnglobal.comparison, the P/E ratio for the NASDAQ 100 is 42.02.
The average analyst price target for QCOM is 175.83. It suggests excellent upside potential from current levels.
Qualcomm Technical Analysis
- The QCOM D1 chart shows price action between its ascending 50.0% and 61.8% Fibonacci Retracement Fan.
- It also shows QCOM trading inside of a horizontal resistance zone.
- The Bull Bear Power Indicator is bearish, but shows an ascending trendline since the start of August.
My Call
I am taking a long position in QCOM between 143.11 and 150.79. The low valuations and its exciting future business plans make QCOM an overlooked semiconductor stock. The pidend yield is a small bonus as well, and I believe there is more upside potential than downside risk to QCOM.
The above content is all about "【XM Forex】--The Best Semiconductor Stocks to Buy Now", which is carefully xmcnglobal.compiled and edited by XM Forex editor. I hope it will be helpful for your trading! Thank you for your support!
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