Sep 22, 2022 (StockMarket.com via COMTEX) -- Semiconductor stocks are referring to the shares of companies that design and manufacture semiconductor products, also known as chips. Actually, semiconductors are the building blocks of electronic devices such as computers, mobile phones, and TVs. As a result, chipmakers are among the most important suppliers to the technology industry. They play a key role in enabling manufacturers to miniaturize devices and make them more powerful. Because semiconductors are essential to so many consumer electronics devices, the semiconductor sector is watched closely by stock market investors.
They also tend to be very volatile, as demand for their products can fluctuate rapidly. For these reasons, semiconductor stocks are popular with investors. When looking for semiconductor stocks to buy, investors typically focus on large, well-established companies such as Intel Corporation ( NASDAQ: INTC ) and Taiwan Semiconductor Manufacturing Company ( NYSE: TSM ). These companies have diversified businesses and a long track record of profitability.
While there are many smaller semiconductor companies that may offer more upside potential, they also tend to be riskier. As a result, it is important to do your research before investing in any semiconductor stocks. With this in mind, let's dive into three top semiconductor stocks to watch in the stock market today .
Semiconductor Stocks To Watch Today
Micron Technology Inc. ( NASDAQ: MU )
NVIDIA Corporation ( NASDAQ: NVDA )
Advanced Micro Devices Inc. ( NASDAQ: AMD )
1. Micron Technology Inc. (MU Stock)
First up, Micron Technology Inc. (MU) is an American multinational corporation. The company specializes in the manufacture of DRAM, NAND Flash, and other semiconductor memory devices. In fact, Micron is one of the largest producers of DRAM in the world. As well as a major player in the development and commercialization of several new memory technologies. Micron's products are used in a wide range of applications, including consumer electronics, computers, networking, automotive and industrial.
At the end of last month, Micron announced they will be releasing their 4th quarter 2022 financial results on Thursday, September 29, 2022, after the market closes. In the meantime, let's recap how Micron performed in its most recent quarterly financial results.
Back at the end of June, the company reported a beat for its third quarter 2022 financial results. In detail, Micron posted third quarter 2022 earnings of $2.62 per share, along with revenue of $8.6 billion. In that report, the company said it estimates fourth quarter 2022 earnings in the range of $1.43 to $1.83 per share. As well as saying that revenue estimates for Q4 2022 were in the range of $6.8 billion to $7.6 billion.
Continuing on, shares of MU stock are down over 48% year-to-date. During Thursday's mid-morning trading session Micron Technology stock is trading at $49.44 per share. After reading this, will you keep an eye on MU stock ahead of its fourth-quarter earnings release?
2. NVIDIA Corporation (NVDA Stock)
Next, here is a semiconductor giant that needs little to no introduction, NVIDIA Corporation (NVDA). For those unaware, NVIDIA Corporation is an American technology company. The company designs graphics processing units (GPUs) for the gaming and professional markets, as well as system-on-a-chip units for the mobile computing and automotive market.
Moving along, late last month NVIDIA reported its Q2 2023 financial results. In the second quarter of 2023, the company posted earnings of $0.54 per share and revenue of $6.7 billion. This was compared to Wall Street's consensus estimates for the quarter, which were earnings of $0.52 per share, and revenue of $8.1 billion.
Additionally, NVIDIA said that it returned approximately $3.44 billion in share repurchases and cash dividends for the 3rd quarter. Which is an increase from $2.10 billion in the first quarter of 2023. However, the semiconductor giant did lower its guidance for the third quarter of 2023.
Furthermore, Founder and CEO of NVIDIA Jensen Huang had this to say about the quarter, "We are navigating our supply chain transitions in a challenging macro environment and we will get through this. Accelerated computing and AI, the pioneering work of our company, are transforming industries. Automotive is becoming a tech industry and is on track to be our next billion-dollar business. Advances in AI are driving our Data Center business while accelerating breakthroughs in fields from drug discovery to climate science to robotics."