Shares of some of the biggest names in the semiconductor industry, including Advanced Micro Devices AMD, Nvidia NVDA, and Micron MU have surged in 2019. The climb is due in part because Wall Street and investors began to see value in some chip names after many tumbled, along with other tech giants, to end 2018.
With that said, the historically cyclical semiconductor industry appears to be in the midst of a downturn. Companies in the industry are beholden to their customers’ product cycles, capital investments, and more. On top of that, chip oversupply can hurt pricing power, as is currently the case for some firms in the industry.
Still, despite the current woes, the industry looks poised to remain highly valuable within the larger technological revolution. Semiconductor companies are poised to help drive forward the growth of the Internet of Things, artificial intelligence, autonomous vehicles, and much more. And it won’t just be the likes of Tesla TSLA, Apple AAPL, Microsoft MSFT, Google GOOGL, and Amazon AMZN that are set to turn big profits and see their stocks climb as these industries expand.
Therefore, a return to growth is likely on the horizon for the industry as a whole, even if some face rough near-term outlooks. So, let’s take a look at three Zacks buy-ranked semiconductor stocks right now…
1. KLA-Tencor Corporation KLAC
KLA-Tencor is part of the Semiconductor Equipment – Wafer Fabrication industry and is one of the largest semiconductor equipment companies in the world. The firm provides advanced process control solutions for manufacturing wafers and reticles, along with integrated circuits and packaging. Shares of KLAC have soared roughly 40% since the start of the year, hitting new highs along the way. The firm, which recently received Intel’s INTC 2018 Preferred Quality Supplier award, currently pays a $0.75 per share dividend and has a yield of 2.54%.
KLA-Tencor is a Zacks Rank #2 (Buy) right now based on its positive earnings estimate revision activity. Looking ahead, the company is expected to…
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