Semiconductor stocks have continued to generate success and rewarding returns for investors who have remained optimistic in this industry. Revenue faced a slowdown last year, but the demand for semiconductor stocks remains and will continue to serve as an essential component of modern technology.
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The semiconductor market overcame a slow 2023 but is coming back into style with loads of new technology this year.
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Taiwan Semiconductor is a dedicated chip producer supplying one of the largest tech markets in the world.
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Advanced Micro Devices is the stock to beat this year as it is expected to soar following high demand for new products.
Joel Lim, a financial analyst at Trading.Biz, has identified two fantastic opportunities in semiconductor stocks for this year. With their current prices and increasing potential for exponential growth over the coming years atop the future profitable wave of technology.
Taiwan Semiconductor and Advanced Micro Devices are the best semiconductor stocks this year. They continue to emerge at the top of the industry and hold the potential to be immensely profitable stocks.
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Taiwan Semiconductor (TSM)
Based in Taiwan, this semiconductor producer is a leading supplier of chips and has access to profitable regions in Southeast and East Asia. Taiwan Semiconductor’s business model does not focus on innovation but is entirely dedicated to production. This means that when semiconductors see high demand, this stock will too.
Along with the rest of the semiconductor industry, Taiwan Semiconductor endured a slow 2023. However, Joel Lim notes, “Despite the slow year, Taiwan Semiconductor managed to beat Q4 revenue expectations and promises a strong rebound for this year.”
Taiwan Semiconductor has released its estimates, promising over 20% revenue growth and a welcomed 19% EPS boost. These numbers will accompany Taiwan Semiconductor, solidifying its role as a core provider of chips to East and Southeast Asia.
Investors should look to buy Taiwan Semiconductor as it capitalizes on any demand surges for semiconductors.
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Advanced Micro Devices (AMD)
Advanced Micro Devices is a leading supplier of chips to large tech companies worldwide, such as Sony and Tesla. AMD has long been a serious competitor to Nvidia, and the company is considered to be at the top of semiconductors and is a hot stock.
However, AMD is making exciting developments in the production and sales of its new data centre chip technology, the MI300. Data centres are an important part of AI functions, and AMD’s chips are state-of-the-art in the top class of available hardware.
Joel Lim notes, “AMD is cementing itself at the top of the semiconductor industry with the MI300 and is already seeing demand from tech giants like Meta.” AMD stock is performing well this year but is expected to take off further thanks to this release and increasing demand for its Ryzen AI chips.
With huge sales from these products, AMD expects a record year in revenue, with estimates reaching an average of $3.35 billion for 2024. There is no better time for investors to get this stock while they still can.