The Zacks Analyst Blog covers NVIDIA, Micron Technology, Advanced Micro Devices, and QUALCOMM

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Chicago, IL – June 11, 2024 – Zacks.com Announces Stock List Featured on Analyst Blog. Zacks Equity Research analysts discuss the latest news and events affecting stocks and financial markets every day. Stocks recently featured on the blog include: NVIDIA Corp. NVDA, Micron Technology, Inc. MU, Advanced Micro Devices AMD and QUALCOMM Inc. QCOM.

Here are the highlights from Monday’s Analyst blog:

4 Stocks in focus after big rebound in semiconductor sales

Over the past few years, the semiconductor industry has faced several challenges that have resulted in slowing sales. Inflationary pressure was one of the main causes of the slowdown in demand.

However, the industry put up an uphill battle and sales rebounded. Enthusiasm for artificial intelligence (AI), especially generative intelligence, is also gaining attention from several semiconductor companies.

The Semiconductor Industry Association (SIA) reported on June 6 that global semiconductor sales were $46.4 billion in April, up 1.1% from the March total of $45.9 billion. Year-over-year semiconductor sales increased 15.8% in April.

Demand for semiconductors was already high, but mounting price pressure over the past few months, preceded by a supply chain crisis, hampered sales. The Federal Reserve’s monetary tightening campaign has increased interest rates by 525 basis points, which has historically caused inflation to plummet. Higher interest rates pose a challenge to the industry.

However, the continued enthusiasm around AI has brought renewed attention to several semiconductor companies producing AI chipsets. The space is dominated by NVIDIA company Its shares are up 211.5% over the past 12 months and 146.4% year over year.

Nvidia’s impressive growth is driven by its graphics processors, which have ushered in significant advances in artificial intelligence. Optimism around artificial intelligence has increased over the past five years, driven by widespread adoption of the Internet and other digital technologies.

The AI market is expected to grow rapidly in the near future, and the demand for AI chipsets is already increasing.

Additionally, the World Semiconductor Trade Statistics (WSTS) forecasts that global semiconductor sales will grow by 16% in 2024 and 12.5% in 2025.

Actions to watch

Given the promising future, it would be wise to invest in semiconductor stocks such as NVIDIA company, Micron Technology, Inc., Advanced Micro Devices AND QUALCOMM Inc.what investors can benefit from in the near future.

NVIDIA is a world leader in visual computing technology and the inventor of the graphics processing unit, or GPU. Over the years, NVDA’s interests have evolved from computer graphics to artificial intelligence-based solutions that now power high-performance computing platforms, gaming, and virtual reality.

NVIDIA expects a 104.8% earnings growth rate for the current year. The Zacks Consensus Estimate for current-year earnings has improved 11.3% over the past 60 days. NVDA is currently sporting a Zacks Rank of #1 (Strong Buy). You can see complete list of today’s Zacks #1 ranked stocks here.

Micron Technology, Inc. has established itself as one of the world’s leading suppliers of semiconductor memory solutions. Through global brands, namely Micron, Crucial and Ballistix, MU produces and markets high-performance memory and storage technologies, including dynamic random access memory, NAND flash, NOR Flash, 3D XPoint memory and other technologies. Micron Technology solutions are used in cutting-edge IT, consumer, network and mobile products.

Micron Technology’s expected earnings growth rate next year will be 119.1%. The Zacks Consensus Estimate for current-year earnings has improved 6.3% over the past 60 days. MU is currently sporting a Zacks Rank #2 (Buy).

Advanced Micro Devices has strengthened its position in the semiconductor market thanks to its evolution as an enterprise-oriented company originating from a supplier of chips for consumer computers. AMD has emerged as a strong competitor to NVIDIA’s dominance in the Radeon-based GPU and GPU market.

AMD processors are primarily powered by the company’s proprietary Zen CPU and Vega GPU architectures. Advanced Micro Devices generated 2023 revenue of $22.68 billion.

Advanced Micro Devices’ expected earnings growth rate for the current year is 29.1%. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the past 30 days. AMD is currently sporting a Zacks Rank of #3 (Hold).

QUALCOMM designs, produces and sells digital wireless telecommunications products and services based on CDMA (Code Division Multiple Access) technology. QCOM products include CDMA-based chips and system software for wireless voice and data transmission, as well as global positioning system products.

QUALCOMM also offers development and other product-related services to U.S. government agencies and their contractors.

QUALCOMM’s expected earnings growth rate for the current year is 17.1%. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the past 30 days. QCOM currently carries a Zacks Rank #3.

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Past performance is no guarantee of future results. An inherent element of every investment is the possibility of loss. This material is for informational purposes only and nothing in it constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is given as to the suitability of any investment for any particular investor. You should not assume that any investments in securities, companies, sectors or markets identified and described have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. Any views and opinions expressed may not reflect the views of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management of any securities. These returns are derived from hypothetical portfolios consisting of stocks with a Zacks Rank = 1 that have been rebalanced monthly with zero transaction costs. These are not profits from actual stock portfolios. The S&P 500 is an unmanaged index. Information regarding the results presented in this press release can be found at https://www.zacks.com/performance.

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