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Best Semiconductor Stocks To Invest In 2022? 4 To Watch This Week

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Oct 02, 2022 (StockMarket.com via COMTEX) -- Semiconductors are small electronic devices that are used to power everything from computers and cell phones to solar panels and cars. The semiconductor industry is very important because semiconductor chips are used in most electronic devices. Semiconductor stocks refer to the stocks of companies that manufacture these chips. Chipmakers, such as Intel Corporation ( NASDAQ: INTC ) and Samsung Electronics ( OTCMKTS: SSNLF ), are among some of the largest semiconductor companies in the world.

Investing in semiconductor stocks can be risky, as the industry is subject to volatile swings in demand. Though, many stock market investors believe that semiconductor stocks will continue to outperform the market in the long run. However, there are also risks associated with investing in semiconductor stocks, such as the potential for technological obsolescence.

Semiconductors becoming increasingly important as our world becomes more digital and interconnected, could be contributed to making them a potential attractive bet for long-term investors. With that, here are four top semiconductor stocks for your list this week.

Semiconductor Stocks To Buy [Or Avoid] Now

1. Micron Technology (MU Stock)

Starting off our list today is Micron Technology (MU). In summary, Micron is one of the largest producers of semiconductor devices in the world. The company offers a wide range of products, including DRAM, SRAM, flash memory, and other semiconductor devices. Micron's products are used in a variety of applications, including computer memory, mobile phones, digital cameras, and automobile electronics.

Meanwhile, just last week, Micron Technology reported its 4th quarter 2022 and 2022 full-year financial results. In the report, the company announced record revenue in verticals such as mobile, auto, industrial, and networking. For the fourth quarter of 2022, Micron Technology reported earnings of $1.36 per share with revenue of $6.6 billion. However, revenue fell for Q4 2022 by 19.7% on a year-over-year basis.

Separate from that, for the full-year 2022, Micron reported revenue of $30.76 billion, compared with $27.71 billion the previous year. Also, operating cash flow for fiscal 2022 came in at $15.8 billion, versus $12.47 billion in 2021. What's more, the company said it's projecting first-quarter non-GAAP results to range from a loss of $0.06 per share to earnings of $0.14 per share along with revenue estimates of $4.00 billion to $4.50 billion.

Micron Technology President and CEO Sanjay Mehrotra commented, "In fiscal 2022, Micron generated record revenue of $30.8 billion and delivered our sixth consecutive year of positive free cash flow, allowing us to return a record $2.9 billion to our shareholders. Our technology and manufacturing leadership in both DRAM and NAND, deep customer relationships, diverse product portfolio, and strong balance sheet put Micron on solid footing to navigate the weakened near-term supply-demand environment."

MU stock is set to open this week's trading session at $50.10 after closing the last trading week modestly in the green at 0.35%. With this in mind, will you be keeping Micron Technology stock on your radar of semiconductor stocks in the stock market this week?

[Read More] 3 Consumer Discretionary Stocks For Your Watchlist Today

2. Texas Instruments (TXN Stock)

Next up, let's check out Texas Instruments Incorporated (TXN Stock). For the most part, Texas Instruments is a global semiconductor design and manufacturing company. The company's focus is on developing analog chips and embedded processors. In turn, Texas Instruments supplies electronics manufacturers in the automotive, computing, consumer electronics, industrial automation, and healthcare markets.

Just last month, Texas Instruments announced it has increased its quarterly cash dividend from $1.15 per share to $1.24 per share, reflecting an 8% increase. As a result, this equals a current annual dividend yield for TXN shareholders of 3.20%. With this dividend increase, the company has now increased its dividend for 19 consecutive years.

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