Tech Stock Sensei

2 Semiconductor Stocks to Buy Hand Over Fist

High prices and consecutive federal rate hikes, and a slowing economy have marred the optimal performance of the semiconductor and chip industry. The U.S. PC market declined 17.3% in the third quarter of 2022, marking the fifth consecutive quarter of year-over-year shipment decline. The semiconductor industry is struggling with slowing demand.

However, the industry looks poised for long-term growth. Increasing consumption of consumer electronics devices and the development of artificial intelligence, the Internet of Things, and machine learning technologies are providing new market opportunities.

Moreover, the Biden administration has allotted $52 billion for chip manufacturing under the CHIPS and Science Act. This lucrative investment is expected to boost the domestic semiconductor sector. Investors’ interest in semiconductor stocks is evident from the SPDR S&P Semiconductor ETF’s (XSD) 22.5% gains over the past month.

Furthermore, according to Allied Market Research, the global semiconductor market is projected to expand at a CAGR of 6.2% from 2022 to 2031.

Given the backdrop, fundamentally sound semiconductor stocks Broadcom Inc. (AVGO) and STMicroelectronics N.V.(STM) could now be solid additions to your portfolio. 

Broadcom Inc. (AVGO)

AVGO creates, manufactures, and distributes a range of semiconductor products focusing on analog III-V-based products and complicated digital and mixed signal complementary metal oxide semiconductor-based devices globally. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.

Last month, AVGO’s ValueOps solution, Rally Software®, achieved Federal Risk and Authorization Management Program (FedRAMP) authorization for federal agencies and departments procuring cloud services. This federal authorization marks a significant milestone for the company.


On October 13, 2022, AVGO announced the expansion of…

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