7 Superstar Semiconductor Stocks to Buy in March


  • Nvidia (NVDA): Nvidia makes the lion’s share of high-powered semiconductors that are mostly responsible for generative AI applications. 
  • Advanced Micro Devices (AMD): AMD is finally rolling out its MI300 semiconductors that can compete with Nvidia’s AI offerings. 
  • Broadcom (AVGO): The company’s recent acquisition of VMware should help play into Broadcom’s strengths.
  • Keep reading for more superstar semiconductor stocks to buy! 
semiconductor stocks to buy - 7 Superstar Semiconductor Stocks to Buy in March

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Not all semiconductor stocks are equal. While there are some real dogs out there, the market has also blessed us with some outstanding semiconductor stocks to buy that are absolute superstars for any portfolio.

Granted, some semiconductor stocks are depressed because of headwinds facing electric vehicles, smartphones and the solar power industry. But equally powerful factors are making the semiconductor stocks on this list a bullish play.

Generative artificial intelligence and machine learning are massive factors spurring some semiconductor stocks to record highs.

As more companies work on creating features and platforms that take advantage of this trend, semiconductor stocks that can capitalize on that growth will continue to perform well.

We’re using the Portfolio Grader to identify some of the best semiconductor stocks to buy. The Portfolio Grader evaluates stocks based on various factors, including momentum, growth, earnings performance and analyst sentiment.

When you see stocks with “A” and “B” ratings, you know you’re looking at a true superstar in today’s market.

Nvidia (NVDA)

Closeup of mobile phone screen with logo lettering of nvidia corporation on computer keyboard. NVDA stock.
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There can be no question that Nvidia (NASDAQ:NVDA) deserves the top spot on any list of semiconductor stocks to buy. The chipmaker has been the most notable semiconductor stock in the last year as it jumped 239% in 2023 on massive earnings growth.

Nvidia makes the lion’s share of high-powered semiconductors that are mostly responsible for generative AI applications. That growth has seen Nvidia’s market capitalization jump to $2.2 trillion, making it the third-biggest company in the world by market capitalization.

I’m confident that the demand for processors used to train large language models will continue to grow, as well demand for chips for other AI use cases. I won’t be surprised to see NVDA stock hit $1,000 per share soon.

NVDA stock is up 82% so far in 2024 and gets an “A” rating in the Portfolio Grader.

Advanced Micro Devices (AMD)

Sign of AMD office in Markham, Ontario, Canada. Advanced Micro Devices, Inc. is an American multinational semiconductor company.
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While Nvidia made a killing in 2023, its primary competitor Advanced Micro Devices (NASDAQ:AMD) had a less successful year. While its gain of 129% was strong and outperformed the market, it paled compared to Nvidia, which dominated the headlines.

But 2024 is shaping up to be a better year. AMD is finally rolling out its MI300 semiconductors that can compete with Nvidia’s AI offerings. AMD is projecting to bring in $3.5 billion this year from the MI300.

On top of that, AMD has a 90% market share for AI chips for personal computers. And while that is a relatively small segment in the overall AI space, I don’t believe that the upset from AI infrastructure chips is fairly represented in AMD’s current stock price.

AMD stock is up 21% so far this year, despite a recent pullback that makes the stock a relative bargain. It gets an “A” rating in the Portfolio Grader.

Broadcom (AVGO)

broadcom (AVGO) logo outside office building
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Broadcom (NASDAQ:AVGO) is also a semiconductor manufacturer. Its products are used in data centers, networking, software, storage, wireless, and industrial applications.

The company supplies Ethernet switching and routing silicon products, network adapters, controllers, and transceivers.

It’s also expanding its reach into the software market thanks to its recent acquisition of VMware, whose hybrid cloud platform should complement Broadcom’s strengths.

The VMware Cloud Foundation platform gives large corporate customers the power of a cloud network even with on-premise data centers. And it uses Nvidia graphics processing units to allow customers to run AI models on site for added security.

AVGO expects its software segment to generate as much as $20 billion in revenue in fiscal 2024–a huge jump from $7.6 billion in 2023.

AVGO stock is up 14% so far in 2024, and 98% in the last 12 months. It gets a “B” rating in the Portfolio Grader.

Taiwan Semiconductor Manufacturing Company (TSM)

image of TSM semiconductor office building
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Taiwan Semiconductor Manufacturing Company (NYSE:TSM) is the globe’s largest chip manufacturer.

The foundry is responsible for roughly 55% of all contract chip manufacturing and 90% of the most advanced chips.

Considering that Nvidia, AMD, Broadcom and others rely on it to make their chips, it’s only natural to include TSMC on any list of superstar semiconductor chips to buy. And the company’s recent performance backs up the bullish call.

Earnings for the fourth quarter were $19.6 billion, with earnings of 29 cents per share. The company is projecting revenue in the first quarter of this year to be somewhere between $18 billion and $18.8 billion with strong demand for high-performance computing chips and lesser demand for smartphone chips.

TSM stock is up 31% in 2024 and gets a “B” rating in the Portfolio Grader.

Photronics (PLAB)

PLAB stock: Electronic board, pen, processor on the background of schematic circuit diagram and photomask for manufacture of printed circuit boards.
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Photronics (NASDAQ:PLAB) is a leading manufacturer of semiconductor photomasks – the opaque plate with transparent areas that allow light to shine through in a specific pattern to power semiconductors.

The company’s photomask products and services include advanced integrated circuit technology nodes, binary masks, phase-shift masks and special purpose products. Without quality photomasks, semiconductors simply wouldn’t function.

The company says the global market for semiconductor photomasks is roughly $4 billion. That makes companies like Photronics an appealing option for investors looking to diversify their portfolios while still getting involved in the semiconductor space.

The Connecticut company’s revenue was $216.3 million in the first quarter of fiscal 2024, up from $211 million a year ago. Income was $26.2 million, up from $14 million a year ago, and earnings rose from 23 cents per share last year to 42 cents per share in this quarter.

PLAB stock is up 67% in the last year. It gets a “B” rating in the Portfolio Grader.

Marvell Technology (MRVL)

image of the marvell (MRVL) technologies office campus
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Marvell Technology (NASDAQ:MRVL) is a semiconductor manufacturer that designs and manufactures products for carrier, enterprise, data center and automotive platforms.

Its chips can be used in cloud applications or on-site. It’s also one of the best semiconductor stocks to buy now.

Marvel’s products are designed to help transmit data quickly so AI can function and make decisions. Marvel’s chips are used in routers, ethernet switches and digital signal processors.

The company is partnering with TSMC to create a platform to produce 2nm semiconductors optimized for accelerated infrastructure, which is critical to developing AI applications. Marvell says the platform is the industry’s first for 2nm semiconductors for accelerated infrastructure.

Earnings for the fourth quarter of fiscal 2024 (ending Feb. 3, 2024) included revenue of $1.42 billion, up from $1.41 billion a year ago.

MRVL stock is up 66% in the last year. It gets a “B” rating in the Portfolio Grader.

Applied Materials (AMAT)

Applied Materials (AMAT) company sign outside office
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Applied Materials (NASDAQ:AMAT) makes equipment and provides the services and software needed to manufacture semiconductor chips that are used for computers, smartphones, televisions and solar products.

However, the company is seeing strong sales for its AI chips, which is supporting its performance even as other markets soften.

Revenue for the first quarter of fiscal 2024 was $6.7 billion, the same as a year ago. But net income improved to $2.01 billion from $1.71 billion, and earnings per share improved to $2.41 from $2.02 per share.

If the personal computer and smartphone markets improve, as I believe they will later this year as people look to replace devices bought during the Covid-19 pandemic, then AMAT’s future looks even brighter.

AMAT stock is up 61% in the last 12 months, and gets a “B” rating in the Portfolio Grader.

On the date of publication, Louis Navellier and InvestorPlace Research Staff member primarily responsible for this article had long positions in NVDA. They did not have (either directly or indirectly) any other positions in the securities mentioned in this article.

Article printed from InvestorPlace Media, https://investorplace.com/market360/2024/03/7-superstar-semiconductor-stocks-to-buy-in-march/.

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