The semiconductor industry has been under pressure due to supply chain disruptions that hampered production targets. However, the Senate passed the CHIPS-plus or Chips and Science Act on Wednesday, which includes more than $52 billion in funding to support domestic production as well as tax credits to encourage investment in the industry.
Additionally, the semiconductor industry has been witnessing heightened demand due to its varied usage in electronic devices; critical infrastructure; advanced technologies like Artificial Intelligence (AI), IoT, and wireless connectivity; which is expected to drive continued growth. The global semiconductor market is expected to grow at a CAGR of 12.2% to reach $1.38 trillion by 2029.
Given this backdrop, it could be wise to buy and hold semiconductor stocks, Photronics, Inc. (PLAB), Cirrus Logic, Inc. (CRUS), QUALCOMM Incorporated (QCOM), MaxLinear, Inc. (MXL), and Semtech Corporation (SMTC).
Photronics, Inc. (PLAB)
PLAB manufactures and sells photomask products and services in the United States and internationally.
PLAB’s revenues increased 28% year-over-year to $204.51 million in the fiscal quarter ended May 1, 2022. Its operating income grew 150.4% from the year-ago value to $52.11 million, while its net income came in at $45.44 million, up 178.4% year-over-year. The company’s EPS grew 188.2% from the prior-year quarter to $0.49 in the same period.
Analysts expect PLAB’s revenue for the fiscal quarter ending July 2022 to come in at $210 million, indicating an increase of 23.1% year-over-year. Also, the company’s EPS is expected to grow 78.6% year-over-year to $0.50 in the same period.
PLAB gained 76.4% over the past year to close the last trading session at $23.21. It gained 87.5% over the past nine months.
PLAB’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, translating to Strong Buy in our POWR Ratings system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
PLAB has a B grade in Quality, Sentiment, Value, and Growth. It is ranked #3 of 94 stocks in the B-rated Semiconductor & Wireless Chip industry.
Beyond what is stated above, we’ve also rated PLAB for Momentum and Stability. Get all the PLAB ratings here.
Cirrus Logic, Inc. (CRUS)
CRUS, a fabless semiconductor company, provides low-power and high-precision mixed-signal processing solutions in the United States and internationally.
For the fiscal fourth quarter ended March 26, 2022, CRUS’s net sales increased 66.9% year-over-year to $489.97 million. Its gross profit grew 74.7% from the year-ago value to $258.73 million. Net income for the quarter stood at $96.41 million, reflecting a 281.4% increase year-over-year. Moreover, its EPS was $1.64, up 290.5% from the prior-year quarter.
Street expects CRUS’ revenue for the fiscal quarter ended June 2022 to come in at $365.99 million, indicating a 32% year-over-year increase. Its EPS is expected to improve 53% year-over-year to $0.83. The company also beat the consensus EPS estimates in three of the trailing four quarters.
CRUS’ shares have gained 11.2% over the past three months to close the last trading session at $81.82.
CRUS’ sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, equating to Strong Buy in our POWR Ratings system.
The company also has an A grade in Growth and a B in Value and Quality. The stock is ranked #4 in the Semiconductor & Wireless Chip industry.
To get CRUS’ ratings for Momentum, Stability, and Sentiment, click here.
QUALCOMM Incorporated (QCOM)
QCOM engages in developing and commercializing foundational technologies for the wireless industry worldwide. The company operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI).
On July 28, QCOM announced strengthening its strategic partnership with Samsung Electronics Co. Ltd. to deliver leading premium consumer experiences for Samsung galaxy devices. QCOM and Samsung also agreed to expand their collaboration with…
Continue reading at STOCKNEWS.com