The increasing dependency on advanced technologies, such as artificial intelligence (AI), Internet of Things (IoT), and 5G wireless solutions, has caused sustained demand for semiconductors. According to the Semiconductor Industry Association (SIA), the worldwide sales of…
semiconductors increased 29.2% year-over-year to $44.5 billion in June 2021. Also, substantial government and private investments to tackle the global chip shortage should help the industry meet the surging demand, which is primarily coming from the consumer electronics and electric vehicles industries.
The global semiconductor market is expected to reach $803.15 billion by 2028, registering an 8.6% CAGR.
Therefore, we think fundamentally sound semiconductor stocks ASE Technology Holding Co., Ltd. (ASX – Get Rating) and Everspin Technologies, Inc. (MRAM – Get Rating) could be solid bets now. These two stocks are currently trading below $10 but hold significant upside potential.
Taiwan-based ASX provides independent semiconductor, electronic manufacturing, packaging, and testing services in the United States, Europe, Asia, and internationally. The company also offers IC wire bonding packages, interconnect materials, system-in-package products, and other semiconductor test-related services.
ASX’s total net revenue increased 18% year-over-year to NT$126.93 billion ($4.58 billion) for the second quarter ended June 30, 2021. Its gross profit increased 31.9% from its year-ago value to NT$24.80 billion ($895.47 million). The company’s operating income grew 56.3% from the prior-year quarter to NT$13.17 billion ($475.54 million), while its EPS increased 43.8% year-over-year to NT$ 2.3 ($0.08).
A $19.88 billion consensus revenue estimate for the current year represents 22.7% growth from the same period last year. In addition, the company has an impressive earnings surprise history; it beat the consensus EPS estimates in each of the trailing four quarters. Also, its EPS is expected to increase 61.4% in the current year and 100% in the current quarter.
Moreover, the stock has gained 52.7% in price over the past nine months and 112.8% over the past year to close yesterday’s trading session at $8.92.
ASX’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
ASX is also rated A for Value, Momentum, and Sentiment. In addition, within the A-rated Semiconductor & Wireless Chip industry, the stock is ranked #27 of 98 stocks.
To see additional POWR Ratings for Growth, Quality, and Stability for ASX, click here.
MRAM is a manufacturer and distributor of magnetoresistive random-access memory (MRAM) in the United States and internationally. The Chandler, Ariz.-based concern offers Toggle MRAM, Spin-Transfer Torque MRAM, and Tunnel MagnetoResistance Sensors, as well as foundry services for embedded MRAM. In addition, the company offers its products for applications in the data center, industrial, automotive, medical, aerospace, and transportation market.
In June, MRAM announced that…
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