Semiconductor stocks look promising amid the booming global digital transformation, tech innovation, and the ongoing artificial intelligence (AI) wave. As per data intelligence platform Statista, the sector is expected to grow at a rate of 6.3% from 2024 to 2027, resulting in a market volume of $736.4 billion. Investors should note that many semiconductor companies have strong balance sheets, deliver consistent profits, and carry attractive dividend yields, making them appealing to long-term investors.
Using TipRanks’ Stock Screener tool, we identified five semiconductor stocks that have the potential to outperform the market. These stocks have received a Strong Buy rating from Wall Street analysts and have an Outperform Smart Score (i.e., 8, 9, or 10) on TipRanks. Moreover, the analysts’ price targets reflect some upside potential from the current level.
Here are the five key stocks from the semiconductor sector for investors to consider.
- Nvidia (NASDAQ:NVDA) – Nvidia manufactures computer graphics processors, chipsets, and related multimedia software. NVDA stock’s average price target implies an upside potential of 20.7%. Further, it has a Smart Score of nine.
- Broadcom (NASDAQ:AVGO) – The global technology company designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. AVGO stock’s price forecast of $1,145.31 implies 4.1% upside potential. Moreover, it has an outperforming Smart Score of “Perfect 10.”
- Marvell (NASDAQ:MRVL) – Marvell is a global semiconductor company that provides solutions for data infrastructure, storage, processing, and connectivity. The stock’s average price target implies an upside potential of 6.1%. Also, its Smart Score of “Perfect 10” is encouraging.
- Micron (NASDAQ:MU)– Micron specializes in the development and production of memory and storage solutions. MU stock has an average price target of $95.22, which implies 14.2% upside potential from current levels. It has a Smart Score of nine.
- Applied Materials (NASDAQ:AMAT)– The company provides manufacturing solutions for the semiconductor and display industries. AMAT stock has an analyst consensus upside of 11.2% and a Smart Score of eight.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
