Intel, Advanced Micro Devices, Taiwan Semiconductor Manufacturing, Advanced Energy Industries, Micron Technology and Analog Devices

Christel Deskins

For Immediate Release Chicago, IL – August 19, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Intel Corporation INTC, […]

For Immediate Release

Chicago, IL – August 19, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Intel Corporation INTC, Advanced Micro Devices, Inc. AMD, Taiwan Semiconductor Manufacturing Company Limited TSM, Advanced Energy Industries, Inc. AEIS, Micron Technology, Inc. MU and Analog Devices, Inc. ADI.

Here are highlights from Tuesday’s Analyst Blog:

4 Semiconductor Stocks to Snap Up on Data Center Strength

Coronavirus crisis-induced work-and-learn-from-home necessity led growth in demand for cloud services has compelled data center operators to bolster their cloud-storage capacities. This has bolstered chip demand from data center operators.

In fact, semiconductor companies, including Intel, Advanced Micro Devices, and Taiwan Semiconductor Manufacturing Company delivered blockbuster performance in the second quarter driven by strength in data center vertical.

Moreover, momentum in high performance computing (HPC) applications, gaming, wearables, drones and VR/AR devices due to the coronavirus crisis, which has led to increase in usage of online services globally, is fueling massive growth in the semiconductor space.

Further, evolution of semiconductor manufacturing processes from 10 nanometer (nm) to 7 nm and even 5 nm technology is opening new business avenues. The accelerated deployment of 5G technology is anticipated to spur further growth. Additionally, improvements in DRAM and NAND pricing are acting as tailwinds for semiconductor stocks catering to memory market.

Also, spike in worldwide sales of semiconductors buoys optimism. Notably, per data from The Semiconductor Industry Association (SIA), global semiconductor industry sales were $103.6 billion in second-quarter 2020, up 5.1% on a year-over-year basis. According to World Semiconductor Trade Statistics (WSTS) data, annual global semiconductor sales are expected to witness growth of 3.3% and 6.2% in 2020 and 2021, respectively.

The optimism surrounding semiconductor stocks can also be ascertained by the robust performance of iShares PHLX Semiconductor ETF (SOXX) on a year-to-date basis, which has rallied 20.6% compared with the SPDR S&P 500 ETF’s (SPY) rise of 5%. Further, SPDR S&P Semiconductor ETF (XSD), which tracks the S&P Semiconductor Select Industry Index, has gained 18.8% year to date.

Considering growth prospects of the chip makers driven by data center boom and HPC push, it makes sense to invest for long-term gains. Here, we have shortlisted four stocks that are incredible for investing at the moment.

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Moreover, synergies from Artesyn Embedded Power buyout and deep engineering capabilities in the data center market are expected to aid the company in sustaining momentum in the telecom and data center space.

The Zacks Consensus Estimate for 2020 earnings has been revised upward by 38.3% in the past 60 days to $3.83 per share.

Furthermore, it is well poised to benefit from the resurgence in DRAM demand, backed by a progress in customer inventory adjustments in the cloud, graphics and the PC markets. Increasing mix of high-value solutions, enhancement in customer engagement and improvement in cost structure are positives.

Growing demand from cloud-computing providers and acceleration in 5G adoption are also contributing to the performance of this Zacks Rank #2 company.

The Zacks Consensus Estimate for fiscal 2020 earnings has been revised upward by 12.3% in the past 60 days to $2.73 per share.

Strength in the company’s 5 nm and 7 nm technologies is bolstering performance across 5G smartphone, HPC and Internet of Things verticals.

Deal wins from NXP and AMD remain noteworthy. The company currently carries a Zacks Rank #2 (Buy).

The consensus mark of $3.14 per share for 2020 earnings has been revised upward by 12.1% in the past 60 days.

Further, growing power design wins are major positives for this Zacks Rank #2 company. Notably, it has inked deal to acquire Maxim Integrated Products (MXIM). The deal is expected to drive Analog Devices’ growth across several emerging markets.

Additionally, rising adoption of advanced radio systems in 5G infrastructures is driving growth of the company’s communication business. It remains optimistic about growth opportunities related to 5G.

The consensus mark of $4.68 per share for fiscal 2020 earnings has been revised upward by 9.6% over the past 60 days.

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Micron Technology, Inc. (MU) : Free Stock Analysis Report
 
Intel Corporation (INTC) : Free Stock Analysis Report
 
Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report
 
Analog Devices, Inc. (ADI) : Free Stock Analysis Report
 
Advanced Energy Industries, Inc. (AEIS) : Free Stock Analysis Report
 
Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
 
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