3 Buy The Dip Semiconductor Stocks To Scoop Up In May

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The semiconductor industry thrived last year on increased demand for electronic devices from companies and individuals seeking to stay connected and entertained during the height of the COVID-19 lockdowns. The demand for semiconductors increased significantly from the booming electric vehicle (EV) industry as well.

This, along with a global semiconductor shortage, helped semiconductor stocks gain significantly over the past year. This is evidenced by SPDR S&P Semiconductor ETF’s (XSD) 74.5% returns over the past year versus the SPDR S&P 500 ETF’s (SPY) 47.4% gains.

The industry is expected to continue growing due to mainstream adoption of internet of things (IoT), 5G, artificial intelligence (AI), and electric vehicles (EVs). According to ResearchAndMarkets, the semiconductor market is expected to grow at a CAGR of more than 6% between 2021 and 2026.

While the current tech sell-off has caused the stocks of established semiconductor companies NXP Semiconductors N.V. (NXPI), KLA Corporation (KLAC), and Skyworks Solutions, Inc. (SWKS) to lose some value, they are expected to rebound quickly based on the industry’s solid growth prospects. So, now could be a perfect opportunity to scoop up these stocks.

NXP Semiconductors N.V. (NXPI)

Headquartered in Eindhoven, Netherlands, NXPI offers various semiconductor products internationally. The company’s product portfolio includes microcontrollers, communication processors, analog and interface devices, radio frequency power amplifiers, and security controllers. Its product solutions are used in a range of applications, including automotive, industrial and Internet of Things (IoT), mobile, and communication infrastructure.

In March, NXPI announced the expansion of its EdgeVerse portfolio with its crossover applications processors that include i.MX 8ULP and i.MX 8ULP-CS, and next-generation i.MX 9 series of high-performance intelligent applications processors. In February, the company also introduced its new EdgeLock 2GO IoT service platform for easy, secure deployment and management of IoT devices and services. These product introductions are expected to increase its sales based on higher demand for its efficient solutions.

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