The semiconductor industry is rallying. The demand for semiconductors continues to rise, supply cannot keep pace, and there appears to be a potentially lengthy imbalance developing between the two. If the semiconductor shortage continues into 2022, the industry could continue to climb…
However, there is no guarantee that the semiconductor companies will continue to maintain their profit margins amidst ever-changing market dynamics. If you’re looking to invest in chip stocks, make sure to choose the stocks with the best chances of maintaining and capturing additional market share.
Let’s take a look at three A-rated semiconductor stocks to consider adding to your portfolio: Broadcom (AVGO – Get Rating), Renesas Electronics Corporation (RNECF – Get Rating), and STMicroelectronics N.V. (STM – Get Rating).
Broadcom (AVGO – Get Rating)
AVGO, a San Jose, CA-based semiconductor firm, designs, develops, and brings semiconductor devices to market. The stock is currently trading at $484. AVGO’s 52-week high is $495.14, and its 52-week low is $304.18. AVGO has a beta of 0.93, which means it is less volatile than the market.
The stock has a forward P/E ratio of 17.61, which is fairly low for a semiconductor stock, so AVGO offers value at its current trading price. AVGO is ranked third out of nearly 100 stocks in the B-rated Semiconductor & Wireless Chip industry. You can find other top stocks in this industry by clicking here.
AVGO has an overall grade of A, which translates into a Strong Buy rating in our POWR Ratings system. The company has grades of B in the Quality, Sentiment, Stability, and Growth components. You can find out how AVGO fares in the Momentum and Value components by clicking here.
Analysts have established an average target price of $530.62 for AVGO. If the stock rises to this level, it will have increased by nearly 13%. Twenty- four analysts rate the stock a Strong Buy or Buy.
Click here to check out our Semiconductor Industry Report for 2021
Renesas Electronics Corporation (RNECF – Get Rating)
RNECF researches, designs, develops, and makes electronic components. The company specializes in semiconductors along with integrated devices. RNECF is currently trading at $10.98. its 52-week high is $13.07, and its 52-week low is $5.14.
RNECF has an overall grade of…
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