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Best 3 Semiconductor Stocks to Buy This Month

best semiconductor stocks
Nemanja Curcic

Summary: As the pace of technological advancement in our society increases more rapidly, there is a growing need for more and better microchips, the primary product of the semiconductor sector. In this article, we will highlight the best 3 semiconductor stocks and explain how to buy them using the services of an online investing platform like eToro.

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What are semiconductor stocks?

Semiconductor chips are integral to any piece of modern technology. If it is digital, it has semiconductors. After all, microchips provide electronic gadgets with memory capacity and processing power across all sectors and industries of human activity.

The industries with the greatest need for semiconductors are wireless communications and electric vehicle (EV) manufacturers. Besides these two, semiconductors are crucial to novel technologies like artificial intelligence and the Internet of Things (IoT).

Investing in semiconductor stocks can be an attractive opportunity for many investors. Whether you invest in companies that design chips or semiconductor foundries, the semiconductor sector, on the whole, is poised to benefit from the growing needs of all contemporary technologies. 

Best three semiconductor stocks to buy this month

As a result of our comprehensive research, we present our choice of the top 3 semiconductor stock picks for this month:

Highly Rated Stock Trading & Investing Platform

  • Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

1. Nvidia (NVDA)

Nvidia Corporation (Nasdaq: NVDA) is an American multinational technology company and semiconductor giant. In fact, it plays a crucial role in the newest AI expansion and influences over 90% of the chip market. Approaching this month, the company achieved enviable results, weathering US-issued China export restrictions without major damages and even launching advanced new chips onto the global market. 

Best 3 Semiconductor Stocks to Buy: Nvidia homepage screenshot
Nvidia homepage screenshot. Source: nvidia.com

Besides developing cutting-edge microchips for semiconductor manufacturers worldwide, Nvidia is a leading graphics processing units (GPUs) and application programming interfaces (APIs) designer. It dominates multiple technology-related sectors besides AI, like data science, computing, and automotive.

Nvidia is a constituent of the Nasdaq-100 and the S&P 100 indices. 

NVDA stock price today


2. ASML Holding (ASML)

ASML Holding N.V. (Nasdaq: ASML), commonly referred to as ASML, is a Dutch multinational company dedicated to designing and manufacturing photolithography machines. ASML’s products are essential for semiconductor manufacturing, which has extensive use in electronic appliances, EVs, and AI development. 

Best 3 Semiconductor Stocks to Buy: ASML homepage screenshot
ASML homepage screenshot. Source: asml.com

Headquartered in Veldhoven, Netherlands, ASML is an integral supplier for the semiconductor industry. As of December 2023, it is the world’s singular provider of extreme ultraviolet lithography (EUV) photolithography machines that produce today’s most advanced chips. ASML is a constituent of the Nasdaq-100 and Euro Stoxx 50 indices.

ASML stock price today


3. Qualcomm (QCOM)

Qualcomm Incorporated (Nasdaq: QCOM) is a notable global tech company and the world’s third-largest semiconductor producer by revenue. It is known for its critical contributions to mobile communications, such as the Snapdragon. Additionally, Qualcomm deals in 5G technology, wireless, and IoT products and services.

Best 3 Semiconductor Stocks to Buy: Qualcomm homepage screenshot
Qualcomm homepage screenshot. Source: qualcomm.com

The company holds multiple patents necessary for today’s mobile communication standards and plays a key role in the telecoms sector, apart from its semiconductor specialization. QCOM is a part of the Nasdaq-100 and the S&P 100 indices. 

QCOM stock price today


Where to buy semiconductor stocks

Anyone can invest in semiconductor stocks quickly and easily using an online investing service, and our preferred choice is eToro. Enjoying widespread popularity with over 30 million registered accounts, it stands out for its robust features, including:

  • Commission-free stock and ETF trading; 
  • 2,000+ stocks from 17 exchanges;
  • Fractional shares available;
  • Charting tools;
  • User-friendly platform.

Highly Rated Stock Trading & Investing Platform

  • Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Pros and cons of buying semiconductor stocks

Pros

Pros

  • Industry and market growth: The technology sector’s development hinges on the size of the semiconductor industry. As the global industry experiences rapid technological advancement, semiconductor companies will likely grow, which can be an excellent opportunity for investing in semiconductor stocks this month;
  • Global demand for microchips: Semiconductors are necessary wherever there are electronic devices, and as the demand for such tools and gadgets continues to rise globally, the semiconductor industry remains likely to benefit;
  • Technological innovation: Semiconductors are integral to various emerging technologies, including AI, 5G, EVs, and IoT. Buying some of the best semiconductor stocks now could allow investors to reap the benefits tomorrow;
  • Broad profit margins: Most semiconductor companies enjoy high profit margins due to the specialized and complex nature of their products and the rising demand for advanced semiconductor technology.
Cons

Cons

  • Cyclical economy: The semiconductor industry is cyclical and susceptible to economic cycles. During economic downturns, demand for electronic devices, therefore semiconductors, may decrease, impacting the value of semiconductor stocks;
  • Supply chain and logistics issues: The semiconductor industry could face serious supply chain issues, such as shortages of key components. Difficulties in securing the primary resources could impact production and, subsequently, the financial viability of semiconductor stocks;
  • Competition: The semiconductor sector is very competitive, and companies must continuously invest in research and development to remain at the forefront. Intense competition can lead to issues in pricing and narrower profit margins;
  • Geopolitical risks: The semiconductor industry has a global supply chain, and geopolitical tensions can hinder the movement of components and resources. The US-China “chip war” has particularly affected the semiconductor industry.

If you are keen on exploring markets closely connected to the semiconductor industry, especially as they relate to electric vehicles, feel free to check out our other EV-focused guides:

Common mistakes to avoid when investing

Make sure to avoid these common investing mistakes:

  • Lack of research: Research the semiconductor stocks in detail, along with the market state of the related industries (including AI, EV, and IoT) before investing;
  • Lack of strategy: Set your goals before you spend any money;
  • Staking everything on one asset: Always diversify your portfolio;
  • Falling prey to scams: Avoid illegal platforms and suspicious deals.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

FAQs about semiconductor stocks

What are semiconductor stocks?

Semiconductor stocksrepresent shares in companies that develop and manufacture semiconductor microcircuits, commonly called microchips or just chips.

Is it safe to invest in semiconductor stocks?

Investing in individual stocks is always relatively risky, and semiconductor stocks are not an exception. Perform your own research and follow the guidelines provided in this article before you spend any money.

How to invest in semiconductor stocks?

Investing in semiconductor stocks is straightforward; you must register an account with a regulated online brokerage like eToro, transfer some funds, and buy the shares.

What are the best semiconductor stocks to buy this month?

Some top semiconductor stocks to invest in this month include Nvidia, ASML, and Qualcomm.

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