By Daniel Newman
A mass of attention has been brought to semiconductor companies as supply-chain constraints have reduced the availability of everything from cars to laptops to gaming consoles.
The largest chipmakers and foundries — Intel /zigman2/quotes/203649727/composite INTC +1.46% , Nvidia /zigman2/quotes/200467500/composite NVDA +4.27% , Advanced Micro Devices /zigman2/quotes/208144392/composite AMD +2.76% , Taiwan Semiconductor Manufacturing /zigman2/quotes/204359850/composite TSM +1.50% , Globalfoundries and Qualcomm /zigman2/quotes/206679220/composite QCOM +2.34% — have gotten most of the headlines.
Most have done well despite the circumstances. Revenue and prices are up as every single unit they can produce is sold.
As the challenges are sorted out, it has become clear that semiconductors are a hot commodity, and for investors, that could be considered an opportunity.
Furthermore, several other names beyond the regulars in the semiconductor space warrant attention from investors looking to attach to the growing need for chips.
Here are four that I believe warrant attention:
Marvell Technology /zigman2/quotes/200053236/composite MRVL +3.07% reported just under $800 million in revenue while delivering earnings per share (EPS) of 29 cents in its most recent quarter. That was the fourth consecutive quarter of accelerated earnings growth and record revenue.
Marvell has done a nice job building its unique identity in the chip space, focusing on opportunities in the data center and the edge, and divesting itself of its consumer business.
The strategy has paid off well for the company. It has received upgrades from key research firms like Citigroup, B. Riley and Benchmark.
The company has been attentive to growth in key markets, including 5G, automotive and cloud, coexisting nicely with many big chipmakers.
In addition, the recent close of its $10 billion acquisition of Inphi helped take the company’s total addressable market (TAM) over $23 billion and strengthen its networking and data center business by adding optical capabilities. As a result, the company is in the right business segments, and the opportunity for growth is evident based on the continuous year-over-year growth of its top and bottom lines.
Lattice Semiconductor /zigman2/quotes/204117531/composite LSCC +2.93% came out earlier this week with earnings, delivering growth on both the top and bottom lines on total revenue of just over $115 million.
Perhaps the least recognized name on this list, Lattice has made a name for itself for its pure-play focus on delivering low-cost, power-efficient field-programmable gate arrays (FPGAs). These chips, which are used in servers, automobiles, 5G and the internet of things (IoT), are found alongside chips from Qualcomm, Intel, AMD and others. In addition, certain capabilities like device instant-on for PCs or infotainment rely on Lattice’s technology.
In its most recent quarter, the company saw growth of its key segments above 20%, with its communications and computing group reaching 28%. Further, the company has done an excellent job managing inventory during the supply crunch and displayed confidence that it would manage demand through the shortage.