Some industries will expand despite mild near-term challenges simply because of their inherent characteristics. Technology companies typically perform well when the economy is growing rapidly, but as soon as a cloud begins to appear, the sector begins to falter. As has become clear throughout this year, the high technology industry has two sides. One such sector is the semiconductor industry, which was worth $527 billion last year. By 2029 it is expected to grow to a whopping $1.3 trillion at a compounded annual growth rate of 12.2%. Driving this growth will be the higher demand for consumer electronics. With the aforementioned growth rate, the semiconductor industry, which was worth $556 billion in 2021, will be worth $900 billion in 2027. Another study predicts that businesses would grow their spending at a CAGR of 6.81% during the following five years.
Insider Monkey looks at the 13 best semiconductor stocks to buy now. Taiwan’s contract semiconductor maker United Microelectronics Corporation produces semiconductors. The company receives orders from chip design businesses and uses its equipment to produce the chips. It had a robust 22% increase in revenue last year as a result of the increased demand for mature process semiconductors. The only business in the world capable of producing sophisticated equipment required by chipmakers to print semiconductors is ASML Holding N.V. Over the next two to four years, Intel Corporation and Taiwan Semiconductor Manufacturing Company will purchase next-generation EUV equipment known as High NA. Lam Research Corporation is actively pursuing revenue diversification away from the memory market. This has begun to pay off, as seen by the fact that during the fourth quarter of its fiscal year 2022, revenues from the logic segment increased by an astounding 273%. One of the biggest and oldest chip manufacturing firms in the world is Intel Corporation. The business is in charge of producing central processing units (CPUs) for both home and business users. A semiconductor business called Broadcom Inc. specializes in making goods for use in communications equipment. During its fiscal year 2022, the company increased their FCFs, with the most recent quarter showing a 26% increase. The company provides a $4 dividend for a 3.26% yield, and robust cash flows also allow for hefty dividends. For more details, click the 13 Best Semiconductor Stocks To Buy Now.
