Thursday, October 28, 2021

4 Top Large-Cap Semiconductor Stocks to Buy in the Fourth Quarter

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Stock Markets44 minutes ago (Sep 28, 2021 03:30PM ET)

(C) Reuters. 4 Top Large-Cap Semiconductor Stocks to Buy in the Fourth Quarter

Increasing government investments on a global scale are expected to boost semiconductor production. This will likely reduce the chip shortage in upcoming quarters. So, the chip the industry is well-positioned to grow, capitalizing on the skyrocketing demand from several industries in this digital era. This should bode well for fundamentally sound large-cap semiconductor stocks Broadcom (NASDAQ:AVGO), STMicroelectronics (STM), United Microelectronics (UMC), and Qorvo (NASDAQ:QRVO).Although COVID-19 lockdowns in Malaysia have exacerbated the global chip shortage, governments’ initiatives worldwide to keep critical factories up and running and address supply chain vulnerabilities bode well for semiconductor manufacturers. With chip suppliers reallocating capital and increasing supply to the automotive and electronics markets, the shortage is expected to reduce gradually. According to the World Semiconductors Trade Statistics, the worldwide semiconductor market is expected to grow by 25.1% in 2021.

Investors’ confidence in the semiconductor industry is evident from the iShares Semiconductor ETF’s (SOXX) 59.8% return over the past year. The global semiconductor market is expected to reach $778 billion by 2026, registering a CAGR of 7.7%.

Therefore, we think it could be wise to bet on quality large-cap semiconductor stocks such as Broadcom Inc. (AVGO), STMicroelectronics N.V. (STM), United Microelectronics Corporation (UMC), and Qorvo, Inc. (QRVO). They are expected to deliver substantial returns in the near term based on their market dominance, consistent innovations, and diverse portfolio.

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4 Top Large-Cap Semiconductor Stocks to Buy in the Fourth Quarter

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