2 Lesser-Known Semiconductor Stocks To Buy As Chip Prices Soar

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The last year has been one of the best for semiconductor stocks because demand for them increased exponentially. Semiconductor chips play a vital role in the construction and use of advanced technologies that are helping several businesses navigate the healthcare crisis. Among other uses, chips are essential for running PCs, gaming consoles, mobile phones, electric vehicles (EVs), industrial machines, and data centers.

Investors’ increased interest in the semiconductor industry amid the pandemic is evidenced by the SPDR S&P Semiconductor ETF’s (XSD) 92.7% returns over the past year versus the SPDR S&P 500 ETF’s (SPY) 46.4% gains over this period.

While demand is rising, a shortage of semiconductors fueled by pandemic interruptions is pushing prices up.  With governments worldwide taking measures to increase the use of EVs, and with the increasing use of cloud computing, 5G, and AI, the demand for semiconductors should keep growing. According to WBOC, the worldwide market for semiconductor equipment is expected to grow at a CAGR of 6.9% over the next five years.

Given this backdrop, we think it is wise to bet on lesser-known semiconductor companies, such as Vishay Intertechnology, Inc. (VSH) and ChipMOS Technologies Inc. (IMOS). They have immense growth potential thanks to their consistent product innovations.

Vishay Intertechnology, Inc. (VSH)

Based in Malvern, Pa., VSH is a manufacturer and supplier of discrete semiconductors and passive electronic components. The company operates primarily through six segments—Metal Oxide Semiconductor Field Effect Transistors (MOSFETs), Diodes, Optoelectronic Components, Resistors, Inductors, and Capacitors. It serves various end-markets, including industrial, computing, automotive, consumer, telecommunications, power supplies, military and aerospace, and medical.

This month, VSH introduced the world’s best AEC-Q101 qualified p-channel -80 V TrenchFET MOSFET. Its increases power density and efficiency in automotive applications. The launch should help the company stay ahead of its competitors.

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