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The technology industry has been booming over the past year, and many are looking for semiconductor stocks to buy. Semiconductors have been a standout industry. The benchmark ETF for the semiconductor industry as a whole is the VanEck Semiconductor ETF (NASDAQ:SMH), which has returned 69% in the past year, while the S&P 500 has only returned 26% within the same time period.
Semiconductor stocks have been on the cutting edge of innovation, and investors are still very interested in the industry’s ability to adapt and change.
Below, I discuss three semiconductor stocks that may not be very well known compared to industry giants such as Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), and Intel (NASDAQ:INTC). However, these stocks are up-and-coming stocks that have seen impressive share price appreciation and still hold a decent valuation with room to grow within this rapidly evolving industry.
Here are some semiconductor stocks to buy:
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Semiconductor Stocks to Buy: ACM Research (ACMR)
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ACM Research (NASDAQ:ACMR) primarily supplies the semiconductor industry with wafer cleaning and wet processing equipment. It also offers electrochemical plating services.
On May 8, earnings for the first quarter of 2024 were released. Total revenue and net income both doubled year-over-year to $152 million and $22 million, respectively. Earnings for the first quarter beat analyst expectations, similar to Q4 2023.
First-quarter shipments increased by 175% compared to the previous year. The overall outlook for the full year 2024 remained the same: ACMR predicts that total revenue will be between $650 million and $725 million.
Over the past year, its share price has increased by 130%. And it’s still trading at a strong valuation, especially within the semiconductor industry. Its forward P/E ratio is 12.98 times, while the sector average is 23.94 times.
ACMR still offers investors the capabilities of very strong returns, especially if it keeps beating analyst predictions regarding earnings.
ASE Technology (ASX)
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ASX Technology (NYSE:ASX) is a semiconductor and testing company that provides a wide range of industry support services.
Over this past year, its share price has risen by 48%.
On Apr. 25, ASE Technology reported earnings results for the first quarter of 2024, stating that total revenue increased by 1% and net income fell by 2% year over year.
ASE Technology also provides investors with a strong dividend yield, which is an anomaly, particularly for the semiconductor industry. Its dividend is distributed on an annual basis. The most recent dividend given to investors was fifty-six cents per share, paid out on Aug. 3, 2023. Its overall yield at this time is approximately 5%.