Let’s start by pointing out that the size of the worldwide semiconductor market was $527.88 billion in 2021, and it is anticipated to increase by 12.2% CAGR (Compound Annual Growth Rate) to $1.38 trillion by 2029. The rapid adoption of electronics and the advancement of machine learning, artificial intelligence, and the Internet of Things (IoT) are collectively responsible for the industry’s growth.
Despite the market’s rising chip demand, the sector lately saw a temporary downturn. The shortages could result from the need for knowledge of integration and programming. It’s on record that semiconductor sales, which were $50.2 billion in June 2022, fell to $49 billion in July 2022, a 2.3% fall. However, revenues in the chip sector increased 0.5% from Q1 to Q2 of 2022. With sales at a three-year low, it’s refreshing to see progress. These stocks are each involved in positive market dynamics.
Now, join me while I cover three personal favorite semiconductor stocks based on their notable earnings and growth. Experts agree that we should invest in these buy-rated chip tickers:
Photronics Inc (PLAB)
Photronics, Inc (PLAB) and its subsidiaries produce and sell photomask services and products in the United States, China, Europe, Korea, Taiwan, and elsewhere globally. PLAB’s Photomasks are used in the fabrication of integrated circuits and flat panel displays (FPDs), as well as in the transfer of circuit designs onto FDP substrates, silicon wafers, and other kinds of optical and electrical parts. PLAB provides its goods to chip and FPD manufacturers, foundries, designers, and other electronics makers. Previously known as Photronic Labs, PLAB changed its name to Photronics, Inc in 1990. PLAB was founded in 1969 and is headquartered in Brookfield, CT.
PLAB released solid earnings for Q3, beating EPS and revenue projections by 2.00% and 4.74%, respectively. PLAB’s sales increased by 8% to $219.9 million, and a $31.2 million net profit was reported, an 82% year-over-year increase. The IC (Information Coefficient) division, which increased from $161.3 million in sales to $161.3 million annually, generates most of PLAB’s revenue. Year-over-year growth looks suitable for PLAB: Revenue – 28.89%; Net Income – 82.89%; EPS – 82.14%; Net Profit Margin – 41.86%. PLAB’s outlook for 2022’s fourth fiscal quarter is such that the stock finds itself priced – let’s say, very advantageous – for any investor. PLAB’s consensus estimated price target is 25.50, from analysts who provide 12-month median projections, with a high of 28.00 and a low of 23.00. The estimate is a 74.18% increase from current pricing, and PLAB has a buy rating that speaks highly for itself.
Axcelis Technologies Inc (ACLS)
Axcelis Technologies, Inc (ACLS) designs, produces and supports ion implants and other machinery used in making semiconductor chips. ACLS provides high energy, medium, and high current implanters for diverse application needs. ACLS also offers used tools, equipment upgrades, replacement parts, maintenance services, and client training as part of its aftermarket lifecycle goods and services. Its direct sales staff provides ACLS’s products and services to semiconductor makers. ACLS was established in 1978 and is based in Beverly, MA.
The ion implantation business segment accounts for 97% of ACLS‘s revenue. For three years, ion implantation’s overall customer base has risen to $2.25 billion. To enhance the production of ion implantation equipment, ACLS has also announced the opening of its new Axcelis Asia Operations Center, creating anticipation. Regarding financial problems, in ACLS’s world, they don’t exist. For Q2 of ‘22, ACLS beat analysts’ EPS and revenue earnings forecasts by 26.52% and 3.18%, respectively. The consensus estimated price target for ACLS is 90.00 – thanks to analysts who provide annual forecasts – with a high estimate of 95.00 and a low of 87.00. The assessment is a 50.65% increase from the latest price, and analysts are excited about ACLS as it comes with a strong buy rating.
SiTime Corp (SITM)
SiTime Corporation (SITM) is a Taiwanese company that designs, develops, and distributes silicon timing system solutions in the United States, Taiwan, Hong Kong, and worldwide. SITM sells resonators, electronic components for clocks, and different oscillators. SITM’s solutions are used in various areas, including communications and enterprise, aerospace, automotive, industrial, military, IoT (Internet of Things), consumer, and mobile. Timing items are sold by SITM through suppliers and resellers. SITM was founded in 2003 and is based in Santa Clara, CA.
The $48 billion 5G industry is one that SITM can effectively dominate. SITM has a promising future since the worldwide IoT (Internet of Things) automotive industry is predicted to increase at a CAGR (Compound Annual Growth Rate) of 25.5% to $286 billion by 2028. SITM could brag about the year-over-year growth numbers if it wanted: Revenue – 78.48%; Net Income – 535.64%; EPS – 470.00%; Net Profit Margin – 255.82%. SITM is also a company that’s been consecutively beating the expectations held by economists on its quarterly earnings reports for at least one fiscal year. From analysts who provide 12-month price forecasts, SITM has a consensus median price target of 220.00, with a high of 250.00 and a low of 130.00. The estimate indicates a whopping 172.95% increase over the last price, one of many incentives to invest in SITM, which gets a very confident buy rating.
Read Next: CEO of Biggest PE firm predicts “social unrest”
I don’t know if you’ve seen this or not yet…
But Stephen Schwarzman, the CEO of Blackstone (America’s biggest private equity firm), recently went public on CNN predicting America is about to see serious “social unrest”. (to see why click here)
Schwarzman said: “You’re going to get very unhappy people around the world… What happens then, is you’ve got real unrest. This challenges the political system…”
Bill Bonner, an ultra-wealthy entrepreneur who started what is probably America’s biggest financial research firm more than 40 years ago, agrees…
Bonner says,
“We are about to enter a very strange period of time in America.”
“What I see on the horizon could be the worst U.S. crisis ever…which could likely be followed by riots and ultimately some form of revolution.”
What has these two super-successful and wealthy men so concerned?
Well, Bill Bonner recently went public with a full explanation, from one of his three European properties… overlooking the Blackwater River. (View for free on our website here)
Over the past 50 years, Bonner has made three macro-economic predictions… all of which came true.
And today, from his 60-acre property, he’s issuing what he calls: His 4th and Final Warning. He says…
“I believe it falls on someone like me to warn people… clearly… and without distraction.
“I can do this now because I’m too rich to care about money… and too old to care about what anyone says about me.”
Get the facts. Learn how to protect yourself (Bonner explains his 4 recommended steps), and get a peek inside one of his spectacular properties.
We’ve posted Bonner’s full analysis and footage of his property on our website. You can view it free of charge, right here…
