Last year was a good one for the major market indices, with the S&P 500 returning almost 27%, while the Dow Jones Industrial Average and the Nasdaq Composite returned 18.7% and 21.4%, respectively. While a semiconductor shortage continues to…
impact the supply chain, the demand for these chips continues to rise, pushing up their prices.
According to JPMorgan Chase & Co. (JPM) analyst Gokul Hariharan, the chip shortage may drag on this year. But the situation is expected to improve from mid-year onwards. According to an International Data Corporation (IDC) report, the semiconductor market is expected to reach $600 billion by 2025, growing at a 5.3% CAGR, versus its 3% – 4% historic growth.
Synaptics Incorporated (SYNA – Get Rating), SiTime Corporation (SITM – Get Rating), Alpha and Omega Semiconductor Limited (AOSL – Get Rating), and Trio-Tech International (TRT – Get Rating) emerged as the best performing semiconductor stocks last year and are expected to gain further in the near term.
Click here to checkout our Semiconductor Industry Report for 2022
Synaptics Incorporated (SYNA – Get Rating)
SYNA in San Jose, Calif., is a developer and supplier of custom-designed semiconductor solutions that enable people to interact with a range of various mobile computing, communications, entertainment, and other electronic devices. The company operates in the smartphones, tablets, personal computers, and Internet of Things (IoT) markets.
On Dec. 2, 2021, SYNA announced the acquisition of DSP Group, which provides voice processing and wireless chipset solutions. The acquisition bodes well for SYNA as it seeks to utilize DSP’s ULE wireless technology and VOIP processing solutions to cross-sell and deliver differentiated solutions to its customers.
SYNA’s net revenue for its fiscal first quarter, ended Sept. 25, 2021, increased 13.4% year-over-year to $372.70 million. The company’s non-GAAP operating income increased 68.5% year-over-year to $127.60 million. Also, its non-GAAP net income came in at $108.70 million, representing a 63% increase year-over-year.
Analysts expect SYNA’s EPS and revenue for its fiscal 2022 to increase 35.7% and 18.2%, respectively, year-over-year to $11.21 and $1.58 billion. It surpassed the Street’s EPS estimates in each of the trailing four quarters. SYNA stock gained more than 200% in price last year and 150% over the past year to close yesterday’s trading session at $255.15.
SYNA’s POWR Ratings reflect its solid prospects. The company has an overall B rating, which translates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
It has an A grade for Growth and a B grade for Momentum. It is ranked #18 of 45 stocks in the B-rated Technology – Electronics industry. Click here to see the other ratings of SYNA for Value, Stability, Sentiment, and Quality.
SiTime Corporation (SITM – Get Rating)
SITM provides silicon timing systems solutions. The Santa Clara, Calif.-based company’s silicon timing solutions comprise micro-electro-mechanical systems resonators and clock integrated circuits. In addition, its product portfolio includes low jitter oscillators, Stratum 3E OCXOs, clock generators, and megahertz oscillators.
On Sept. 29, 2021, SITM introduced its SiT3901 µPower digitally controlled MEMS oscillator targeting power-sensitive and space-constrained mobile and IoT applications. The SiT3901 improves wireless charging speed by up to 25%, while reducing the overall timing solution area by 90%.
SITM’s net revenue increased 92.9% year-over-year to $63 million for the third quarter, ended Sept. 30, 2021. The company’s non-GAAP income from operations increased 127.6% sequentially to $22.02 million. And its non-GAAP net income increased 127.6% sequentially to $21.91 million.
For its fiscal 2021, analysts expect SITM’s EPS and revenue to increase 506.5% and 84.4%, respectively, year-over-year to $2.79 and $214.14 million. It surpassed consensus EPS estimates in each of the trailing four quarters. SITM shares gained more than 150% in price last year and 136% over the past nine months to close yesterday’s trading session at $249.85.
SITM’s strong fundamentals are reflected in its POWR Ratings. It has a B grade for Growth, Momentum, Sentiment, and Quality. Within the A-rated Semiconductor & Wireless Chip industry, it is ranked #75 out of 99 stocks. To see SITM’s ratings for Value and Stability, click here.
Alpha and Omega Semiconductor Limited (AOSL – Get Rating)
Sunnyvale, Calif.-based AOSL designs, develops, and supplies power semiconductors. The company’s portfolio of products focuses on high-volume applications that include personal computers, flat-panel televisions, smartphones, consumer and industrial motor controls. It also offers power semiconductors, including a portfolio of Power MOSFET, IGBT, Power IC, and Digital Power products.
On Dec. 2, 2021, AOSL released its…
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