NEW YORK ( TheStreet) -- Kulicke and Soffa Industries ( KLIC), Nanometrics ( NANO), Nova Measuring Instruments ( NVMI) and Rudolph Technologies ( RTEC) are among 10 semiconductor stocks trading at low P/Es and with substantial upside potential, according to analysts' 12-month price targets. The P/E for these stocks compares to the P/E values of the S&P 500 index and overall industry P/E, which are currently at 17 and 20, respectively.

The above mentioned companies cater to the semiconductor industry. Broadly, revenue growth of these companies hinges on the revenues and capital spending of the semiconductor industry. According to Gartner, semiconductor revenues declined year-over-year during 2008 and 2009 owing to the global slowdown.

However, during 2010, the semiconductor industry witnessed revenue growth of 32% to $300 billion from $228 billion in 2009, Gartner reports. The research company also forecasts semiconductor revenues would grow 6.2% to $319 billion during 2011. Industry analysts, including Gartner, expect demand for smartphones, media tablets, and automotive electronics to be key contributors to this growth.

Gartner also reports 137% increase in capital equipment spending during 2010 and has raised its 2011 spending forecast to 12.4% from 1% predicted during Dec. 2010. With the projected demand growth for semiconductor devices, semiconductor manufacturers will need to increase production capacity, which augurs well for these companies.

The stocks are stacked in terms of P/Es, lowest to highest.

If you liked this article you might like

West Marine Gets Acquired; Don't Miss the Boat on These Other Double-Nets

How My Outperforming Value Portfolio Is Bucking the Trend

My Midyear Value Investing Highs and Lows

Can Kulicke & Soffa 'KLIC' With Investors?

3 Small Value Stocks That Came Up Big on Thursday