Top 5 stocks of companies issuing scarce microchips

In 2020, the pandemic triggered a global digital transformation, with various businesses and organizations working online. Internet traffic in developed countries increased by 60% shortly after the outbreak of covid. It has led to significant demand and shortages for microchips. Semiconductor stocks will continue to benefit as the tendency to live remotely (remoting work or study) is unlikely to end soon.

Also called integrated circuits (ICs) or microchips, semiconductors play an essential role in manufacturing electronic devices. They provide progress not only in computing itself but also in healthcare, military systems, transportation. As a result, the global semiconductor market expects to grow 19.7% in 2021 to reach $ 527 billion. And in 2022, the market growth is projected by another 8.8%.

High demand for chips and supply chain disruptions amid the pandemic has triggered a global shortage that potentially could last until the end of 2022. However, scarcity can be an opportunity for investors who successfully anticipate race winners. Therefore, we have highlighted the top 5 stocks of semiconductor manufacturers, which should pay attention to given the high demand for microcircuits.

ASML Holding NV

ASML, based in the Netherlands, designs and manufactures equipment for the manufacture of microcircuits, including lithographic machines. The company was founded in 1984 and operated in more than 60 locations in 16 countries worldwide.

Exchange and security code (ticker): NASDAQ: ASML
Share price on 08/26/2021: $ 809.02

Microchip Technology

Microchip Technology, based in Chandler, Arizona, USA, supplies custom semiconductor products to more than 120,000 embedded control customers. These clients represent the aerospace and defence, industrial, automotive, consumer, communications and computing markets.

Exchange and security code (ticker): NASDAQ: MCHP
Share price on 08/26/2021: $ 152.49

Qualcomm

Qualcomm, based in San Diego, California, is a leading wireless innovator. It is known for its chips for smartphones, including for transferring mobile phones to 5G. In addition, the company operates in the digital transformation market: the Internet of Things, the automotive industry, cloud technologies. As part of its growth strategy, QCOM has pledged to buy Swedish automotive technology developer Veoneer.

The paper is among the top 10 most popular stocks among emerging markets investors.

Exchange and security code (ticker): NASDAQ: QCOM
Share price on 08/26/2021: 142.03 dollars

Skyworks Solutions

Based in Irvine, California, Skyworks Solutions supplies high-quality analogue semiconductors for cordless telephones and similar devices. The main products include power amplifiers, switches and integrated interface modules that support wireless communication.

Exchange and security code (ticker): NASDAQ: SWKS
Share price on 08/26/2021: $ 180.89

Taiwan Semiconductor Manufacturing

Taiwan semiconductor manufacturing is the world’s largest chip manufacturing enterprise. Founded in 1987, the group manufactures integrated circuits and semiconductor products. The company’s growth points are developing applications for smartphones, high-performance computing, the Internet of things and the automotive industry. Significant customers of the company’s products are HiSilicon, MediaTek, Huawei, Realtek, AMD, NVIDIA, Qualcomm, ARM Holdings, Altera, Xilinx, Apple, Broadcom, Conexant, Marvell, Intel (wireless solutions, chipsets, some Atom processor models). Among Russian clients: Baikal Electronics (a subsidiary of T-Platforms), MCST.

Anonymous sources revealed this week that Taiwan Semiconductor Manufacturing would raise chip prices due to shortages. Moreover, this will not be the first increase this year. The company also cancelled all discount promotions for 2021.

Exchange and security code (ticker): NYSE: TSM
Share price on 08/26/2021: $ 117.77

It will add Taiwan Semiconductor Manufacturing shares to the list of shares traded on the Moscow Exchange from September 1, 2021, under the ticker TSM-RM.

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