Semiconductor Watchlist: AMD Is Dominating the Semiconductors

See buy or sell recommendations for Nvidia, Qualcomm, NXP, Broadcom, Taiwan Semiconductor, Intel, and more semiconductor stocks.
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There has been a huge shortage of semiconductors over the last few months, yet it’s expected that Advanced Micro Devices  (AMD) - Get Report has continued to do quite well. 

AMD said Wednesday that it sees June quarter revenues in the region of $3.6 billion, with a range of plus or minus $100 million, and a non-GAAP gross margin of 47%. For the full 2021 financial year, AMD said it sees revenues growing 50% from 2020 levels, indicating a total of around $14.65 billion, as bottlenecks fade and supplies slowly increase over the second half of the year.

The company saw earnings rise 150% from last year to 45 cents per share, with revenues up 92% to $3.45 billion as it stole share from rivals like Intel in the PC market and doubled down on its dominance in gaming chips.

"The entire semiconductor supply chain is very, very tight. I think you hear that from all of our peers in the marketplace," AMD CEO Lisa Su told investors on a conference call late Tuesday.

It’s clear that Intel  (INTC) - Get Report is struggling against AMD and Nvidia  (NVDA) - Get Report, the latter of which recently had an impressive rally to new highs after its GTC conference, wrote TheStreet's Bret Kenwell.

"I don't want to own Intel because it's falling behind AMD. AMD is ahead in manufacturing, and semiconductors are a manufacturing business," said Jim Cramer, the founder of TheStreet. "I'd buy AMD." 

Bulls are optimistic that AMD is also enjoying a solid quarter, indicative of the rally over the last few days. However, we’ll need more than that if we’re going to see a move to new all-time highs.

For more in-depth coverage of the semiconductor sector including trading recommendations and investment strategies, follow Eric Jhonsa on Real Money.

Here is a list of the semiconductor stocks to watch and their performance by percentage change at the close of trading on Wednesday, Apr. 28:

Nvidia Corp | -0.07% 5-Day

A Reddit poster speculated that Nvidia  (NVDA) - Get Report was a candidate to acquire MicroVision  (MVIS) - Get Report, which saw its shares continue to rise Tuesday after more than doubling -- up 154% -- in the week through Monday. The jump came as the Reddit crowd has chosen the maker of laser technology for auto sensors as its flavor of the week.

“This is pure speculation, but … Nvidia could be the buyer of … MicroVision, to develop an all-in-one package for the autonomous driving market,” the Reddit raven called u/DutareMusic wrote Sunday.

There's been no confirmation to any of this speculation between Nvidia and MicroVision.

When Nvidia kicked off its GTC Conference on April 12, shares ripped higher and ultimately climbed to new 52-week highs.

TheStreet Quant Ratings rates Nvidia as a Buy with a rating score of B.

Qualcomm | +1.19% 5-Day

Shares of Qualcomm  (QCOM) - Get Report rose Wednesday after the company reported fiscal second-quarter results that topped analyst estimates. The company more than doubled its net income from a year ago to $2.19 billion in the quarter. 

Qualcomm shares were up 5.5% to $144.01 after hours Wednesday. The San Diego chipmaker reported earnings of $1.90 per share on revenue of $7.93 billion, a 52% year-over-year increase. Analysts were expecting earnings of $1.67 per share on revenue of $7.62 billion, according to FactSet. 

The firm also said that shortages in the semiconductor industry could lead customers to accumulate inventory or double order, which could lead to over shipments that do not reflect true demand. 

TheStreet Quant Ratings rates Qualcomm as a Buy with a rating score of B.

NXP Semiconductors | -0.94% 5-Day

NXP Semiconductors  (NXPI) - Get Report swung to a stronger-than-expected first-quarter profit from a year-earlier loss on 27% higher revenue.

The Eindhoven, Netherlands, chipmaker reported that it earned $1.25 a share compared with a loss of 8 cents a share in the year-earlier quarter. Revenue reached $2.57 billion from $2.02 billion.

At last check, NXP shares were trading up 1.5% to $208.10. They closed regular Monday trading at $205.02, up 1.7%. The stock touched a 52-week high of $216.43 on April 5.

TheStreet Quant Ratings rates NXP Semiconductors as a Buy with a rating score of B-.

Advanced Micro Devices | +3.31% 5-Day

Advanced Micro Devices  (AMD) - Get Report shares traded higher Wednesday after the chipmaker forecast solid current-quarter sales and a robust full-year outlooked pinned on improving demand and a loosening of tensions in the global semiconductor supply chain.

AMD shares were marked 0.5% higher in early trading Wednesday to change hands at $85.65 each, a move that would trim the stock's year-to-date decline to around 7%.

AMD received a positive assessment from Deutsche Bank ahead of the semiconductor giant's first-quarter earnings report. But Deutsche analyst Ross Seymore kept his rating on the stock at hold, with a $90 price target, reflecting valuation.

TheStreet Quant Ratings rates AMD as a Buy with a rating score of B.

Intel | -9.54% 5-Day

Intel  (INTC) - Get Report shares slumped lower this past week after the chipmaker hinted that investments in new manufacturing foundries would likely pressure near-term profit margins, clouding the impact of its first-quarter earnings beat.

Intel posted a bottom line of $1.39 per share on sales of $18.6 billion, topping Wall Street forecasts, but noted that current quarter profits would slow to $1.05 per share on revenues of around $17.8 billion.

That guidance appeared to offset a full-year outlook that included improved revenue forecasts of $72.5 billion, gross margins of 56.5%, and earnings of $4.60 per share, thanks in part to stronger PC demand linked to work-from-home dynamics. 

TheStreet Quant Ratings rates Intel as a Buy with a rating score of A-.

Taiwan Semiconductor Manufacturing | +2.47% 5-Day

Taiwan Semiconductor Manufacturing  (TSM) - Get Report boosted its near-term investment plans on Mar. 31, pledging to spend $100 billion over the next three years to increase production capacity, including a previously-announced factory it will build in Arizona.

The company boosted how much it will spend on CAPEX from $28 billion to $30 billion.

"You're in good shape there. I would buy it at these levels," Jim Cramer said of the company this past week.

TheStreet Quant Ratings rates TSM as a Buy with a rating score of A.

Micron Technology | -3.81% 5-Day

Micron Technology  (MU) - Get Report reported fiscal-second-quarter revenue and adjusted earnings that exceeded Wall Street estimates. The company's adjusted earnings more than doubled to 98 cents a share from 45 cents a share in the year-earlier period.

TheStreet Quant Ratings rates Micron as a Buy with a rating score of B.

Texas Instruments | -3.39% 5-Day

Shares of chipmaker Texas Instruments  (TXN) - Get Report were falling Tuesday despite the company reporting first-quarter revenue and earnings that topped analyst estimates, as well as strong second-quarter guidance.

The company reported first-quarter revenue of $4.29 billion vs. the analyst consensus of $4.00 billion, while adjusted earnings came in at $1.87 per share versus consensus estimates for $1.58 per share. Operating income for the quarter was $1.94 billion vs. consensus estimates of $1.71 billion.

TheStreet Quant Ratings rates Texas Instruments as a Buy with a rating score of A.

AMD, Broadcom, and Nvidia are key holdings in Jim Cramer's Action Alerts PLUS charitable trust. Want to be alerted before Jim Cramer buys or sells any stock? Learn more from Cramer and his membership team now.