3 Highly Rated Semiconductor Stocks To Own In 2021

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As the world adapted to a new normal amid the COVID-19 pandemic, the demand for electronic products increased significantly. As a corollary to this, the demand for semiconductors also increased. Semiconductors are used in a broad variety of electronic devices, including PCs, smartphones, and game consoles. The increasing popularity of autonomous vehicles is also contributing to the growing demand for semiconductors. The iShares PHLX SOX Semiconductor Sector Index Fund’s (SOXX) 52.1% gains over the past nine months reflect high investor interest in semiconductor stocks.

However, in addition to other negative factors, the tension between the United States and China has led to a semiconductor shortage. The United States is heavily reliant on China and Taiwan to meet its demand for these chips. But, the countries have been working to ease the tension and improve the market supply of chips. Furthermore, President Biden signed an executive order on February 25 that calls for a 100-day review of the semiconductor shortage, and Congress is expected to pass legislation and spend $37 billion to help reduce the semiconductor shortfall.

Meanwhile, the semiconductor industry is off to a good start to 2021. Global semiconductor industry sales increased 13.2% year-over-year in January 2021, according to the Semiconductor Industry Association (SIA). And according to International Data Corporation (IDC), sales are expected to hit  $476 billion in 2021, reflecting 7.7% year-over-year growth.

So, we think it wise to bet on Texas Instruments Incorporated (TXN - Get Rating), NXP Semiconductors N.V. (NXPI - Get Rating), and ASE Technology Holding Co. Ltd. (ASX - Get Rating). These companies have been growing rapidly despite increasing competition in the overcrowded semiconductor market.

Texas Instruments Incorporated (TXN - Get Rating)

Headquartered in Dallas, Texas, TXN designs manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. It operates mainly through two segments: Analog and Embedded Processing. The company markets and sells its semiconductor products through direct sales and distributors, and through its website.

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Carl Schwartz 2 weeks ago Member's comment

$THBR, forgot about that one 🤑