In today’s volatile market, the keen-eyed investor might spot golden opportunities hidden amidst the tumult. One such promising horizon? Oversold semiconductor stocks. Recent market tremors have made some semiconductor giants tumble, potentially offering savvy investors a bargain entry point.
As the tech world advances at breakneck speed, semiconductors remain at its beating heart. Thus, while these dips might send some running for the hills, they present enticing semiconductor stocks to buy for others. It’s a balance between the intricate dance of risk and reward.
Yet, this could be an advantageous moment for those willing to dig deep and discern the temporarily downtrodden from the permanently damaged. And while it’s always crucial to tread cautiously, fortune often favors the brave. Let’s delve deeper into these prospects, uncovering which semiconductor stocks might be tomorrow’s hidden gems.
Intel (INTC)
Amid the recent downturn in AI stocks, there’s an opportunity for savvy investors to find value in oversold semiconductor stocks. One such prospect? Intel (NASDAQ:INTC). In the last month, Intel’s stock has decreased about 4%. This minor decline presents a possible investment opportunity for those focused on long-term growth.
Intel is working to reclaim its position as the leader in semiconductor chip technology. The company has decided to split its manufacturing and fabless units to achieve this.
Furthermore, in June, the leading semiconductor company unveiled two significant advancements indicating its sustained momentum in the semiconductor domain.
Intel is looking to pour up to $4.6 billion into a new semiconductor assembly and testing site close to Wrocław, Poland. This site will process chips from Intel’s factories in Ireland and Germany, assembling and verifying the finished products. Additionally, Prime Minister Benjamin Netanyahu announced Intel’s commitment to a $25 billion chip manufacturing facility in Israel, representing a historic foreign investment in the nation.
These developments were further substantiated, with the diluted EPS beating June 2023 expectations by a whopping 546%. And while the company is set to cut 140 jobs at its California sites, Intel also announced its ambition to amplify its advanced chip packaging capacity by a significant four-fold by 2025. The forthcoming 14th Gen Raptor Lake also promises a 17% speed enhancement.
With such proactive measures, Intel seems geared up to solidify its presence in the semiconductor sector. As the market fluctuates, keeping a close watch on established giants like Intel.
Qualcomm (QCOM)
In the evolving semiconductor sector, Qualcomm (NASDAQ:QCOM) is emerging as one of the most talked-about entities. Over the past month, it has dipped by approximately 13%, pushing it into the territory of oversold semiconductor stocks. However, let’s not let that overshadow some noteworthy aspects of its latest financial release.
Qualcomm’s earnings report for Q3 2023 brought to light some interesting figures. Revenue fell 23% to $8.45 billion, but earnings per share surpassed expectations by 3.35%, with net income dropping 52% to $1.8 billion. What caught the eye of many analysts was the significant net change in cash, a staggering increase of 160%.
Furthermore, while Qualcomm grapples with a 25% reduction in chip sales and contemplates layoffs, it remains at the forefront of innovation.
The company’s alliance with NXP underscores its commitment to challenging the ARM chip standard. Rumors of partnerships with Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and Samsung to develop a 3nm chip further highlight its dedication to leading the semiconductor space.
Finally, Qualcomm is benefiting from the increasing demand for AI chips. These chips are used in devices ranging from smartphones to autonomous vehicles. Recent tests show that Qualcomm’s AI chips outperformed Nvidia’s (NASDAQ:NVDA) in two out of three power efficiency measures, highlighting their competitiveness in the market.
In the grand tapestry of semiconductor stocks to buy, Qualcomm, with its future-focused ventures and robust financial position, certainly merits closer scrutiny by investors.
NXP Semiconductors NV (NXPI)
In the stock market’s roller-coaster ride, NXP Semiconductors NV (NASDAQ:NXPI) has recently seen a dip, shedding roughly 12% over the past month. Such movements can raise eyebrows, but keen investors know to look beneath the surface. Considering its financials, it’s evident that this dip could offer an attractive entry point for those scouting for oversold semiconductor stocks.
The company showcased its second-quarter 2023 results with a revenue of $3.30 billion, marking a slight 0.4% decline from the previous year. However, not everything was challenging. NXP Semiconductors’ net income climbed to $698.7 million, marking a 4% growth, and its diluted EPS rose by a notable 5.5%. These positive figures come when NXP Semiconductors is fortifying its strategic position in the market.
With Volkswagen AG (OTCMKTS:VWAGY) purchasing key chips directly from the company, NXP Semiconductors is in a great position for potential growth. Additionally, the hint that Apple might remain resilient against the China smartphone slowdown further contributes to NXP Semiconductors’ promising outlook. Furthermore, the collaborations with giants like Mahindra, TSMC, Bosch, and Infineon Technologies signal that the semiconductor powerhouse isn’t slowing down.
With Credit Suisse ramping up its holdings and a robust forecast for the third quarter, driven by steady automotive demand, NXP Semiconductors is a semiconductor stock to watch closely. Now, we will see if savvy investors capitalize on the opportunity from the recent market correction.
Stay ahead in the tech game. Now that you’ve finished this article, make sure to delve into ‘The Next Frontier of Tech Investment: 7 Augmented Reality (AR) Stocks for Your Watch List’ penned by Alex Sirois. Discover Now!
On the publication date, Faizan Farooque did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.