3 Chip Stocks For Tech Investors To Buy Now For Coronavirus Rally And Beyond

The infrastructure semiconductor solutions firm’s Q2 revenue is projected to jump 9.7%, with Q3 projected to climb 17.4%, based on our current Zacks estimates. MRVL’s FY21 sales are then expected to jump 11.6% to hit $3.01 billion, with FY22 projected to jump 16% higher—both of which would mark significant improvements from FY20’s 6% downturn. Meanwhile, Marvell’s adjusted earnings are projected to surge 25% in Q2 and 47% in Q3 to help lift its FY21 EPS figure by nearly 40% to $0.92 a share. Better still, its adjusted FY22 earnings are projected to climb 50% above our current-year estimate.

Marvell’s positive earnings revisions trends help it earn a Zacks Rank #2 (Buy) at the moment. MRVL also trades just above its highly-ranked Semiconductor - Communications industry’s average in terms of forward sales, as it has for most of the last three years. Plus, Marvell shares have jumped 30% in 2020 and 82% since the market’s lows to crush its industry’s expansion and rest near their recent highs at around $35 a share. MRVL is also up 100% in the past three years. And accompanying its growth, investors grab a dividend yield that nearly matches the 10-year U.S. Treasury’s payout.

Inphi Corporation (IPHI - Free Report)

Inphi makes semiconductor components and optical subsystems for networking OEMs, as well as cloud computing and telecom companies. IPHI is a leader in data movement interconnects between and inside data centers and helps “move big data fast, around the globe.” Inphi’s Q1 results wowed Wall Street on May 7, with revenue up 70%. Higher demand for cloud and telecom products helped drive sales, as did the inclusion of eSilicon, which it officially purchased in January.

Inphi’s record top-line growth came on top of the year-ago period’s 37% expansion. The firm was already benefiting from a data center boom, the transition to 5G, and more. CEO Ford Tamer thinks the “significant paradigm shifts” caused by the coronavirus, from remote work to e-commerce, might encourage “further acceleration of bandwidth upgrades.” And Inphi’s adjusted FY20 earnings are projected to surge 66%, on 66% higher revenue.

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Jeremy Schmeltz 7 months ago Member's comment

Really good article, very informative and the author really points the reader in the right direction when considering buying technology stocks. I can't wait to see how these stocks perform in the coming weeks.

Dan Nicholson 6 months ago Member's comment

Agreed.