3 Semiconductor Stocks Packed With Momentum

The semiconductor industry is well-positioned for long-term growth, driven by its increasing applications across diverse fields. Additionally, the growing adoption of emerging technologies is expected to boost the demand for advanced chips.

Given this backdrop, it could be wise to ride the momentum in fundamentally strong semiconductor stocks Cohu, Inc. (COHU – Get Rating), Amkor Technology, Inc. (AMKR – Get Rating), and inTEST Corporation (INTT – Get Rating).

Before diving deeper into the fundamentals of these stocks, let’s discuss why the semiconductor industry is well-positioned for growth.

The semiconductor industry is thriving, with chips playing a crucial role in various sectors. Chips can be found in nearly every electronic device and various automotive and industrial machinery. Global semiconductor industry sales totaled $44 billion in August, indicating a sequential increase of 1.9%.

Apart from the massive demand for semiconductors, the industry is benefiting from favorable government initiatives like the CHIPS and Science Act.  Under the CHIPS and Science Act, around $53 billion was allocated to boost semiconductor manufacturing, research, and workforce development in the United States.

Additionally, it provides a 25 percent tax credit for capital investments in semiconductor manufacturing. The U.S. government is aiming to boost domestic manufacturing of semiconductors. Over the past year, businesses have announced investments exceeding $166 billion in semiconductor and electronics manufacturing following the implementation of the CHIPS law.

The semiconductor industry is progressing with advanced technology like nanotechnology and new materials to make more efficient chips. The booming smartphone market is increasing the need for high-performance chips, improving user experiences.

Furthermore, the adoption of emerging technologies like 5G, artificial intelligence (AI), machine learning (ML), etc., is boosting the…

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