Since the beginning of the year, the Philadelphia Semiconductor Index, which shares are included 30 largest chip developers, grew up on 45%. According to investment banks, some stocks from this index have good upside potential in 2022.
Experts call cloud technology, 5G, unmanned cars, metaverses and artificial intelligence are the main growth drivers of semiconductor companies. These are the companies they have noted.
Micron
According to Wells Fargo, Micron is the best company in its segment and the leading manufacturer of DRAM memory. The bank notes a strong growth in sales of chips in the automotive market, where the company's share is about 50%.
Goldman Sachs and J. P. Morgan await, what a growing demand, including from corporations to SSD drives, will also boost Micron's profits in 2022.
Nvidia
According to J. P. Morgan, Nvidia will continue to benefit from these growth drivers, like video games, data centers and autonomous cars. The bank assumes, that the company will continue to lead in these industries.
Wells Fargo Expects Nvidia To Grow With Omniverse, A Platform For Building Virtual Metauniverses.
Broadcom
Deutsche Bank and Wells Fargo Recognize High Order Volume from Broadcom Clients Through 2023 and Rapidly Growing Dividend Yield.
Goldman also points to stable revenue growth and high margins compared to competitors..
Marvell
J. P. Morgan, Marvell's sales will grow faster than the industry average in the coming years thanks to a diversified portfolio and new developments in storage and networking.
And Rosenblatt notes Marvell's rapid transition to next-gen 5nm chips, that cannot be replicated by competitors.
Indicators of companies
| Capitalization to sales | Expected sales growth in 2022 year | |
|---|---|---|
| Micron (MU) | 3,4 | 16,3% |
| Nvidia (NVDA) | 31,6 | 60,0% |
| Broadcom (AVGO) | 10,0 | 11,7% |
| Marvell (MRVL) | 19,2 | 49,7% |
