4 Semiconductor Stocks Ready to Move Higher

Business is booming for the semiconductor sector. Though consumer spending has been impacted by the coronavirus, tech spending has increased due to the shift to remote work and school from home. This is on top of the already secular shift towards increased spending on the cloud and software-as-a-service. All tech spending eventually flows to semiconductors, as computer chips are a foundational part…

If your portfolio does not have at least one semiconductor stock, it is time to add one – or several. Let’s take a look at four of the more intriguing semiconductor stocks: Broadcom (AVGO), Analog Devices (ADI), NXP Semiconductors (NXPI), and Maxim Integrated Products (MXIM).

Broadcom (AVGO)

When it comes to semiconductors, most investors rightfully favor the industry’s dominant players. AVGO is one of the best and its products are found in Apple (AAPL) phones, computers, and tablets in addition to networking equipment. Based in Singapore, AVGO has weathered the coronavirus storm quite well, reporting nearly $6 billion in earnings in the most recent quarter. This is a 4% increase on a year-over-year basis.

AVGO’s growth rate across the past half-decade is an impressive 125%. AVGO’s POWR Ratings are flawless: A ratings in all POWR Components, a ranking of 4 out of 86 stocks in the Semiconductor & Wireless Chip segment, and price returns in the green across all periods going back to 2015.

The analysts have set a price target of $353.04 for AVGO, indicating there is still 13% above the current price. With a forward P/E ratio of 14.55, AVGO provides fantastic value for a tech stock in a hot segment.

Analog Devices (ADI)

Digital signal integrated processing circuits are necessary for computers used by consumers and businesses alike. ADI makes these circuits along with the mixed-signal and high-performance analog varieties. ADI circuits will be used in self-driving vehicles, green electric vehicles, 5G technology, smart sensors, and automated solutions across numerous industries in the years to come. These are all growing rapidly and give ADI a promising outlook.

The POWR Ratings show ADI has “A” POWR Component grades in all categories but for its Peer Grade. ADI is ranked…

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