3 Sizzling Semiconductor Stocks That Could Turn $1K Into $1M – InvestorPlace
These three semiconductor stocks could be poised for significant growth
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Finding the right tech stock to fuel your portfolio’s growth can turn a small investment into a major return. Tech firms have been notorious for giving investors significant returns in exchange for high risk. However, it doesn’t always have to be that way. Investors can look into the backbone of tech companies and invest in high-growth semiconductor stocks instead. This avenue allows them to capitalize on tech’s growth and participate in the increased demand from various sectors like healthcare, automotive, electronics manufacturing and more.
While there’s no real guarantees in life, finding a semiconductor leader with growing revenues and earnings may one day turn out to be the next tech superstar.
So, let’s look at high-growth semiconductor stocks that have the potential to generate massive returns for your portfolio.
ACM Research (NASDAQ:ACMR) is a wafer-cleaning equipment manufacturer specializing in single and batch wet cleaning, packaging and other semiconductor manufacturing processes.
The company uses SAPS technology to run two wet wafer cleaning equipment, Ultra C SAPS V and Ultra C SAPS II. It also designed the Timely TEBO technology, which is applied during the 2D and 3D wafer fabrication. The company’s latest offering now includes an advanced frame wafer cleaning tool used in advanced packaging that provides an almost 100% recovery of the solvents used in the process, therefore reducing costs.
ACM Research ended 2023 strong, with revenue growing 43% and basic EPS increasing from 21 cents in 2022 to 47 cents. President and Chief Executive Officer Dr. David Wang says, “We believe these results underscore the strength of ACM’s multi-product portfolio and our growing customer base. We have captured market share, with our leading cleaning products witnessing 48% growth.”
And I agree. This performance highlights ACMR’s status as one of today’s most attractive high-growth semiconductor stocks. Analysts also rate ACMR stock, up 17% YTD, as a “strong buy.”
Known for its leadership in ion implementation in the semiconductor sector, Axcelis Technologies (NASDAQ:ACLS) plays a key role in the semiconductor chip fabrication process. The company provides technology that runs implantation and cleaning and dry strip processes. Both are critical steps in the IC manufacturing process. Its latest Purion EXE SiC Power Series Implanter is a certified hit and a strong growth driver for the company.
Axcelis Technologies reported record numbers in FY 2023. Revenue reached $1.13 billion from the previous year’s $920 million, registering a 23% growth. That is currently its highest YOY growth. Operating profits also grew 25%, while net income increased by 35%.
President and CEO Russell Low was quite happy with the results, as the growth was achieved despite an industry downturn. Low said, “We have developed a large and diverse customer base in the power market,” adding, “and we continue to win business from new customers as well as expand our product footprint with existing customers.”
The company’s Q1 2024 results affirm this optimism, as its $242.4 million revenue and $1.57 diluted EPS exceeded forecasts of $242 million and $1.22 per diluted share, respectively. If this continues, the company is well on its way to the top of the list of high-growth semiconductor stocks. ACLS stock also has a “strong buy” rating from analysts and is up 11% YTD.
An industry leader in yield management systems and process controls, KLA Corporation (NASDAQ:KLAC) specializes in various products that help companies innovate through its inspection, metrology and related services. The company operates in three main segments, Semiconductor Process Control, Display and Component Inspection and Specialty Semiconductor Process and PCB.
KLA, in partnership with imec Automotive, aims to establish the Semiconductor Talent and Automotive Research, or STAR, initiative. The partnership will focus on fostering talent that can advance semiconductor applications in the automotive industry.
KLA’s FY 2023 results boast a 14% YOY increase in revenue, from $9.2 billion to $10.5 billion. Meanwhile, net income per diluted share grew slightly, from $21.92 to $24.15, representing a 10% growth rate. The company is also committed to focusing on customer requirements and essential R&D investments in light of these results.
KLAC stock is up 45% YTD, and analysts rate the stock as a “strong buy,” making it one of the best high-growth semiconductor stocks in the market.
On the date of publication, Rick Orford did not have (either 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.
Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.
Semiconductor, Technology
Article printed from InvestorPlace Media, https://investorplace.com/2024/06/3-sizzling-semiconductor-stocks-that-could-turn-1k-into-1m/.
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