SPECIAL REPORT The Top 7 Stocks for 2024

3 Spectacular Semiconductor Stocks That Will Make Early Investors Rich

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  • If you want three new investment opportunities within the semiconductor sector, here are these companies that are doing amazing.
  • Microchip Technology (MCHP): With a record-breaking revenue of $2.289 billion and remarkable earnings, it demonstrates remarkable financial strength.
  • Texas Instruments (TXN): It shines as a versatile semiconductor leader across various industries, appealing to investors seeking stability and growth.
  • NXP Semiconductors (NXPI): It boasts a solid financial performance, emphasizing cost-effective management.
Semiconductor Stocks - 3 Spectacular Semiconductor Stocks That Will Make Early Investors Rich

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We are well aware of the most well-known semiconductor stocks within the tech sector and their great growth lately, but we could consider that if we want to maximize our returns, investing in these companies may be a little late. To do so, we must identify the new opportunities that are presenting themselves within the sector and take advantage of the boom of these new companies that are doing an incredible job with excellent results. Here are three semiconductor stocks to make you rich; let’s analyze them.

Semiconductor Stocks: Microchip Technology (MCHP)

Microchip (MCHP) logo at HQ in Silicon Valley. Microchip Technology Inc. manufactures microcontrollers, mixed-signal, analog and Flash-IP integrated circuits
Source: Michael Vi / Shutterstock.com

Microchip Technology (NASDAQ:MCHP) is a leading semiconductor technology company. In essence, they design the technological “brains” that run a wide range of devices, from your smartphone to industrial machinery, making them more efficient and safer.

Why is it so attractive to investors? In their latest financial report, they announced impressive results. Their revenue reached a record $2.289 billion, a significant increase over the previous year. In addition, they posted record earnings in both GAAP and non-GAAP terms, demonstrating their financial strength.

Microchip is also at the forefront of technology. In collaboration with GlobalFoundries (NASDAQ:GFS), they launched a memory technology called SST ESF3, which is fast and versatile, perfect for applications such as secure code storage and over-the-air updates.

But that’s not all. The company is investing $300 million to expand its operations in India, a fast-growing market in the semiconductor industry. This not only strengthens its position but also contributes to the development of the global semiconductor industry.

Texas Instruments (TXN)

Texas Instruments logo on its world headquarters located in Dallas, Texas.
Source: Katherine Welles / Shutterstock.com

Texas Instruments (NASDAQ:TXN) is a leading company in the semiconductor industry. Their versatility and presence in various industries make them an attractive option for investors.

Recently, they reported second-quarter revenue of $4.53 billion, with net earnings of $1.72 billion, which translates to earnings per share of $1.87. Despite market challenges, they managed to grow revenue by 3% sequentially, which shows their resilience.

What makes them stand out is their strong financial position. They generated $7.4 billion in operating cash flow last year and have a free cash flow of 17% of their revenue. This demonstrates their financial stability and resilient business model.

In addition, they consistently invest in research and development, allocating approximately $3.6 billion a year to stay on the cutting edge of technology. They also reward their shareholders with regular dividend increases, such as the recent 5% increase.

Their long-term vision is evident in their $1.6 billion bond issue, intended to fund future corporate projects.

NXP Semiconductors (NXPI)

A sign on a brick well for NXP Semiconductor. NXPI stock.
Source: Lukassek / Shutterstock.com

NXP Semiconductors (NASDAQ:NXPI) is a technology company that designs and manufactures electronic components, and is considered an exciting choice to invest in your portfolio. The company, based in the Netherlands, specializes in semiconductors.

Why is it so promising? First, it has a solid financial performance, with healthy margins and positive cash flow. This demonstrates its ability to manage costs effectively. In addition, NXP is committed to its shareholders, returning capital through dividends and share buybacks.

Sustainability is another important aspect for them, highlighting their commitment to responsible business practices in their annual sustainability report, which appeals to ethically concerned investors.

The company is also involved in strategic partnerships with industry leaders, such as NIO Inc. and TSMC, which keeps it at the forefront of technology. This is evidenced by its work in automotive radar technology and MRAM memory.

Recently, they received awards from automotive partners such as DENSO (OTCMKTS:DNZOY), Hyundai Motor Group, and BMW Group (OTCMKTS:BMWYY) for their excellent service and innovative solutions. In addition, it is investing in research and development in Europe to further strengthen its position in key technologies.

As of this writing, Gabriel Osorio-Mazzilli did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2023/10/3-spectacular-semiconductor-stocks-that-will-make-early-investors-rich/.

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