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- 1 The stocks of semiconductor manufacturing companies have the most promising prospects of profits.
- 2 It is the most important component of various hardware and software used across the globe.
Semiconductors are one of the most important components for powering the digital world. In fact, it won’t be wrong to call them the backbone of many tech-based industries. They breathe life into many prevalent software and hardware applications. Thus, companies manufacturing these essential chips are making plenty of revenue. As a result, they have become the best choice for investors as well.
But to choose the right niche stocks, investors must get categorical. For something like semiconductors, it is a great strategy to choose companies from certain nations. The United States is home to some major semiconductor manufacturing companies. Actually, these are some well-established organizations in the tech domain. However, they have also been big on supplying material rather than making front-end applications. So let’s quickly check out the names of frontrunners in this domain.
Semiconductors Stocks That Must Be In Every Portfolio
For years, these companies have supported various technological endeavors. They are the true catalysts of the digital revolution that’s swamping the world.
NXP Semiconductors (Nasdaq: NXPI)
NXP designs and manufactures semiconductors for automotive, IoT, mobile, and communication infrastructure markets. With 9500 patent families, it operates in more than 30 countries. In 2021, the company locked in a revenue of $11.06 Billion. It co-invented near-field communication (NFC) technology with Sony.
Qualcomm Inc. (Nasdaq: QCOM)
Qualcomm manufactures semiconductors, software, and other components for wireless technology. The company holds patents on multiple mobile communication standards. They are WCDMA, TD-SCDMA, CDMA2000, 4G, and 5G. Founded in 1985, it began with research and development into CDMA wireless technology. Today, it develops chips for vehicles, watches, smartphones, and many other gadgets.
Intel Corporation (Nasdaq: INTC)
Intel is one of the largest semiconductor manufacturers in the world by revenue. It makes microprocessors, embedded processors, graphic chips, motherboard chipsets, integrated circuits, network interface controllers, and flash memory. It is a leading supplier for several computer manufacturers. In 2020, it held 45th rank in the Fortune 500 list.
Nvidia Corp. (Nasdaq: NVDA)
Nvidia is a leading manufacturer of graphics processing units in the US. Its products are extensively used in architecture, engineering, media, automotive, research, and high-performance computing. Lately, the company has also become a major supplier of chips to artificial intelligence firms. It has begun manufacturing AI-powered software audio and video processing too.
Advanced Micro Devices, Inc. (Nasdaq: AMD)
Advanced Micro Devices delivers a wide array of hardware components. It makes embedded systems, microprocessors, graphic processors, motherboard chipsets, embedded processors, and FPGAs. Moreover, it has forayed into other markets like gaming and data centers. Founded in 1969, AMD is a well-established supplier of processors for many leading companies.
Conclusion
There are numerous bright sides to investing in semiconductor companies. To begin with, they’ll probably never go out of business. Even if the technology is replaced with something else in the future, they’ll be at the forefront of it. That’s because they have established themselves firmly and it’s impossible to uproot them. However, risks are inherent to the market no matter what you’re dealing with. Hence, it’s advised to evaluate their performance before making an investment.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
