![]() ![]() ![]() Todd Shriber has been an InvestorPlace contributor since 2014. The company reports earnings on July 30 and some technicians are saying if it the stock rallies through $95, a significant near-term breakout could be afoot. That’s an arena where Qualcomm chips could eventually find their way into millions of connected devices, potentially paving the way for two-year (or longer) growth cycle for the company. That doesn’t even count the company’s footprint in the burgeoning Internet of Things market. ![]() QCOM chips could power half or more of 5G smartphones. Fortunately, that’s not the only 5G opportunity that’s relevant to Qualcomm investors. The 5G rollout has been slow, but it’s gaining steam and the arrival of the Apple (NASDAQ: AAPL) 5G iPhone later this year is widely viewed as a potential catalyst for QCOM stock. From a February peak in the low $90s, the dominant maker of communications chips tumbled to $58 in March amid the Covid-19 market slump, but the stock reclaimed nearly all of those loses thanks in part to 5G enthusiasm. Those are rich multiples even by the standards of small-cap growth stocks, of which Lattice is one.įor a mature tech company, Qualcomm is proving volatile this year. Some of that growth is already reflected in Lattice stock as the shares trade for more than 51x forward earnings and 10.3x sales. In fact, the global FPGA market is expected to offer steady growth over the next several years. Still, Lattice offers investors dual avenues for growth via the data center and 5G base station markets. That potential vulnerability is relevant when evaluating Lattice because China is one of the chipmaker’s primary end markets. That much was on display last year when trade tensions between that country and the U.S. FPGAs are used across myriad industries, positioning Lattice so that it’s not dependent on a single end market.īroadly speaking, semiconductors are levered to trade wranglings with China. Lattice Semiconductor, a maker of field programmable gate arrays (FPGAs), is on a torrid pace, more than doubling off its March lows. “We continue to like the Nvidia story over the long-term, as we see the secular shift to data processing units within the data center, the entrance into new markets (inference, analytics, machine learning), and strategic partnerships (Mercedes-Benz, potentially others) helping to drive strong revenue growth over the coming years,” said Rosenblatt analyst Hans Mosesmann in a recent note. Those factors don’t touch on NVDA’s artificial intelligence and autonomous vehicle exposure. Still, gaming has catalysts of its own as the hardware upgrade cycle coming in the fourth quarter could stoke demand for Nvidia chips. The company’s data center sales are poised to surpass the gaming unit due to the seemingly undaunted growth in the cloud computing space. While that move is sparking some calls that Nvidia is richly valued (it is), this remains a catalyst-rich name with multiple drivers toward more upside.Īnalysts and investors have long touted Nvidia for its data center and gaming exposure. Up almost 78% year-to-date, Nvidia recently topped rival Intel (NASDAQ: INTC) for the title of largest domestic semiconductor company. Nvidia is one of the brightest stories among large-cap semiconductor stocks this year. MACOM Technology Solutions Holdings (NASDAQ: MTSI).Monolithic Power Systems (NASDAQ: MPWR).Bank of America expects the group - which already has strong year-to-date performances - to continue its run-up.įor investors looking for some scintillating semiconductor stocks, here are a few to consider. Plus, the chip stocks have strong balance sheets and solid free cash flow generation. The Wall Street firm says a group of semiconductor names have secular tailwinds, including artificial intelligence, 5G, cloud, and gaming. As CNBC reported:īank of America is bullish on chip stocks in the second half of 2020. While the group is already hot, analysts aren’t backing away from saying semiconductor stocks can deliver second-half upside. For example, the widely followed PHLX Semiconductor Index, a cap-weighted basket of chip stocks, is higher by nearly 14% year-to-date. Semiconductor stocks are contributing mightily to strength in the technology sector this year. ![]()
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