5 best semiconductor stocks to buy for Q1 2024

Semiconductors play a crucial role in developing much of the world’s technology. This beginner friendly guide picks five of the best semiconductor stocks for 2024.
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Updated: Nov 30, 2023
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Demand from technology has resulted in the semiconductor industry experiencing a boom in recent years. With technology now integral to the world, companies that develop semiconductors are in demand. Our investment experts have investigated the market and selected five of the top semiconductor stocks for the year ahead. 

What are the top semiconductor stocks to buy?

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You can find our experts’ selections listed below. You can find their name and ticker symbol and if you want to invest right away, just click the buttons. Alternatively, keep scrolling if you want to know why each has made our list.

#Stock symbolCompany nameTrade now
1TSMCTaiwan Semiconductor Manufacturing Company
2NVDANvidia
Trade NVDA

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3INTCIntel
Trade INTC

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4AMDAdvanced Micro Devices
Trade AMD

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5AMATApplied Materials
Trade AMATF
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List chosen by our team of analysts, updated February 2024.

1. Taiwan Semiconductor Manufacturing Company (TSMC)

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Taiwan Semiconductor Manufacturing Company is the largest semiconductor company in the world, overtaking Intel in 2021. It specialises in manufacturing for other companies rather than producing semiconductor chips for itself. This business model allows TSMC to work with a wide range of clients and diversify its revenue streams.

In late 2022, Warren Buffett’s investment firm Berkshire Hathaway bought 60 million shares in TSMC. This move by one of the world’s most successful and respected investors should give confidence to other potential investors in the company. Buffett’s endorsement indicates that TSMC’s financial performance and growth prospects are strong.

TSMC is also expanding its presence in the United States by opening two new factories in Arizona and investing $40 billion in the region. This move demonstrates the company’s commitment to growing its operations in one of the world’s largest and most important markets. It also positions TSMC well to take advantage of the rising demand for microchip technology in the US and globally.

Trade TSMC

2. Nvidia (NVDA)

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Nvidia Corp. is a technology company that designs and manufactures chips and graphics processing units for various industries, including gaming, data centres, artificial intelligence, personal computers, autonomous driving, and even cryptocurrency mining. This diversification across multiple industries positions the company to benefit from numerous growth drivers and reduce the risk of being exposed to any one market over the next decade.

One of Nvidia’s key development areas is its Nvidia Drive platform, which is well-placed to take advantage of the expected growth in the autonomous driving market. The platform provides a comprehensive set of technology for the automotive market developing self-driving cars, including required chips. The growth in the AI market also may benefit Nvidia Corp.

In recent years, government regulations have restricted the export of chips to certain countries. Nvidia has found a way around this issue by developing an AI chip that is not subject to the same export restrictions. This has allowed the company to continue to grow in international markets and provides investors with confidence in the company’s ability to navigate regulatory challenges.

Trade NVDA

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3. Intel (INTC)

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Intel Corp. is a well-established technology company that has been in operation for decades. It is best known for making chips for computers and laptops and has built a strong reputation for quality and reliability. Despite facing significant competition recently, Intel remains a major semiconductor industry player and is one of the best chip stocks on the market today.

Recently, Intel has undergone some leadership changes and announced a new direction for the company. This new direction could help Intel Corp. regain some of its lost market share and make it a good stock. The company has also been investing in new technologies and expanding its operations, which could drive future growth.

One example of this expansion is the construction of a $20 billion mega chip factory in Ohio, dubbed “Ohio One”, which the company claims will be the world’s largest semiconductor site. This large-scale investment demonstrates Intel’s commitment to staying competitive in the industry and its efforts to increase production capacity. 

Trade INTC

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4. Advanced Micro Devices (AMD)

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Advanced Micro Devices (AMD) is a technology company that has been operating for many years, but it has only recently become a major player in the semiconductor space. It works across four business segments: PCs, data centres, gaming, and embedded. This diversification across multiple industries positions the company to benefit from multiple growth drivers and reduce the risk of being exposed to any one market.

In recent years, AMD has made significant investments to expand its operations and increase its market share. One example of this is the acquisition of Xilinx for nearly $50 billion in 2022. This acquisition expands AMD’s presence in the embedded semiconductor sector and means the company could take advantage of the rising demand for these products.

AMD has also been investing in new technologies, such as developing its Ryzen processors, which are well-regarded by the gaming and PC communities. This has helped the company to increase its market share in these segments, which could drive future growth. Additionally, the recent stock price drop makes it one of the best undervalued semiconductor stocks on the market in 2024.

Trade AMD

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5. Applied Materials (AMAT)

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Applied Materials is a good option for investors wanting a different approach to the industry. It doesn’t make semiconductors like other companies on our list, but it makes semiconductor manufacturing equipment used to develop chips and sells them to other businesses within the industry. As the semiconductor industry grows, AMAT can capitalise on more producers needing equipment.

AMAT also makes equipment for solar panels as well as display screens, which are both growing industries. This diversification in product offerings allows for more opportunities for the company to increase revenue.

It also develops software to help manufacturers manage their production facilities and data centers, which can significantly improve efficiency and reduce manufacturing costs. This added value to their customers can increase demand for their products and services. Overall, the combination of AMAT’s product offerings and the growth of the industries it serves make it a good choice for investors.

Trade AMATF
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Where to buy the best semiconductor stocks

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You can buy any of the best semiconductor stocks on our list by visiting the brokers below. Click on any of the links to be taken to our recommended brokers and sign up in just a few minutes to buy the best semiconductor stocks.

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What is a semiconductor stock?

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A semiconductor stock is a publicly traded company involved in the semiconductor industry. Semiconductors are materials used to create electronic devices and integrated circuits found in various products such as smartphones, computers, and cars.

Semiconductor companies design and produce the advanced chips and microprocessors that power technologies we use every day – from mobile devices and appliances to vehicles, data centres, and cutting-edge innovations like artificial intelligence. Leading chip manufacturers include Intel, Taiwan Semiconductor, Qualcomm, Nvidia, and Advanced Micro Devices Inc.

The semiconductor industry has experienced significant growth in recent decades with the increase of connected devices and the need for computing power. Semiconductor stocks can provide exposure to key long term trends like 5G networks, the Internet of Things, cloud computing, data analytics, and advanced mobility.

Evaluating semiconductor companies’ financial strength, product pipeline, and competitive advantages allows you to identify stocks poised for growth. Semiconductor index funds and ETFs provide diversified exposure to this essential tech industry.

Are semiconductor stocks a good investment?

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Semiconductor stocks are a good investment for several reasons. Firstly, the semiconductor industry is rapidly growing with various applications, from consumer electronics to automobiles and industrial automation. As technology advances and more industries rely on semiconductors, the demand for these materials and the companies that produce them will likely increase. 

Secondly, semiconductor companies often have strong financials, including high-profit margins and equity returns. Many companies within the industry are leaders in their field, with solid research and development capabilities, which can lead to developing new and innovative products and increasing their market competitiveness. 

Due to these factors, many semiconductor companies have historically provided strong returns for investors and are considered excellent long-term investment opportunities. Whatever you decide to do, it’s a good idea to keep up to date with the latest developments and news in the semiconductor industry, which you can do on the links below.

Sign up to a broker & buy semiconductor stocks
Berkshire Hathaway Inc says its operating earnings increased significantly on the back strength in its insurance business in the fourth quarter. The stock has gained a little under 30% since late October. Berkshire’s operating earnings up 28% The conglomerate holding company of the legendary investo
Wall Street has been amazed by the recent surge in technology stocks like Nvidia and Super Micro Computer. All these stocks have surged to a record high because of the ongoing demand for artificial intelligence (AI) globally. But other companies are doing well too. A closer look shows that some priv
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Vodafone Group plc (LON: VOD) is gaining at writing following news of renewed takeover interest. Here’s what we know so far A potential acquirer may be working with Goldman Sachs on such a deal. But a different source that talked to Betaville on condition of anonymity said it’s Jefferies who has bee
Rivian Automotive Inc (NASDAQ: RIVN) is down another 10% on Friday after a UBS analyst double downgraded the EV maker to “sell”. Rivian stock could tank another 20% Joseph Spak trimmed his price objective on the electric vehicles company as well from $24 to $8.0 which suggests another 20% downside f
Surely no stock on the planet is more talked-about right now than Nvidia (NVDA). Nvidia stock premarket this morning was still sitting near its all-time high price of $785.75 per share, which it hit yesterday after a bumper earnings call. As a result of all this, the Nvidia share price has been subj


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Prash Raval
Financial Writer
Prash is a financial writer for Invezz covering FX, the stock market and investing. For over a decade he has traded spot FX full time while... read more.