The semiconductor sector is pivotal in the global tech landscape, as it provides essential components for a wide array of electronic products. These chips are the backbone of computing, mobile devices, automotive systems, and smart appliances. The industry continuously pushes the boundaries of chip performance and efficiency, fueling innovation in technology. It is comprised of a diverse array of companies, including chip manufacturers, design firms, and suppliers of critical semiconductor production equipment.
Investors focusing on semiconductor stocks are drawn to the industry’s potential for robust growth, driven by the relentless demand for advanced electronics and new tech frontiers like 5G, AI, and IoT. Moreover, the sector’s expansion into emerging markets and technologies offers promising growth avenues. However, the semiconductor industry faces unique challenges – it is sensitive to demand fluctuations and requires substantial capital expenditure for research and development as well as production facilities, influencing financial outcomes.
For those investing in semiconductor stocks, delving into industry dynamics, supply chain complexities, and technological evolution is imperative. While these stocks present opportunities for significant gains, they also carry the risk of market volatility, global economic shifts, and policy changes. With that in mind, let’s explore two semiconductor stocks to watch in the stock market today.
Navigating Semiconductor Stocks in the Current Market Climate
Advanced Micro Devices (AMD Stock)
First up, Advanced Micro Devices, Inc. (AMD) is an American multinational semiconductor company. The company specializes in developing computer processors and related technologies for business and consumer markets. AMD is renowned for its CPUs and GPUs, serving a wide range of applications from personal computing to gaming and data centers.
This week, AMD announced its scheduled release of fourth-quarter and full-year 2023 financial results. The company is set to report the figures on Tuesday, January 30, 2024, following the close of the U.S. stock market. To recap, in the last quarter, AMD surpassed expectations with an EPS of $0.72 and revenue of $5.8 billion.
Over the last month of trading, AMD stock has surged by 18.10%. Meanwhile, during Thursday’s mid-morning trading session, the stock is up by 2.36% at $163.94 a share.
Nvidia Corporation (NVDA Stock)
Next, NVIDIA Corporation (NVDA) is a leading technology company and a significant force in the semiconductor industry. NVIDIA is widely known for its graphics processing units (GPUs) and system-on-chip units (SoCs) for mobile computing and automotive markets. Furthermore, NVIDIA’s expertise extends to artificial intelligence hardware and software, with its professional GPUs being integral in various industries, including architecture, engineering, and scientific research.
Earlier this month, NVIDIA introduced new GeForce RTX™ SUPER desktop GPUs, AI laptops from top manufacturers, and RTX™-accelerated AI software and tools for developers and consumers. These innovations aim to improve generative AI performance on PCs and workstations. NVIDIA also announced tools like NVIDIA TensorRT™ for Stable Diffusion XL and NVIDIA RTX Remix for AI texture tools and others.
Over the past month of trading, NVIDIA stock has climbed by 14.47%. During Thursday’s mid-morning trading session, shares of NVDA stock have risen by 2.27%, currently trading at $573.26 a share.
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