To The Moon

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$iShares Semiconductor ETF(SOXX)$ is up 21.9% this year through March 22, outperforming $SPDR S&P Semiconductor ETF(XSD)$ 's 19.5% gain. Over the past year, SOXX and the index have returned 84.1% and 64.4%, respectively.

With the semiconductor industry still in the spotlight, here are seven stocks that are core holdings if you want to seize the opportunity.

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1.NXP Semiconductors

$NXP Semiconductors NV(NXPI)$ has a trailing P/E ratio of just 15 and a dividend yield of 1.7%. But its stock has only gained 6.8% so far this year, lagging behind not only the semiconductor industry but also the S&P 500's 9.7% gain.

The reason? The automotive industry contributes 50% of the company's revenue, and according to a recent Deloitte study, only 11% of consumers plan to buy hybrids or electric vehicles by 2024. Sales of new and electric cars are not ideal.

2.Qualcomm

$Qualcomm(QCOM)$ has seen its stock rise 18.2% year-to-date with a dividend yield of 1.9%. As one of the world's largest wireless device manufacturers, Qualcomm's processors are used by almost all major phone manufacturers. Despite a decline in wireless market demand, the company reported strong first-quarter 2024 earnings, with revenue growing 5% to $9.9 billion.

However, analysts' enthusiasm for this stock has waned, with Christopher Danely of Citigroup downgrading his rating from "Buy" to "Neutral" in a recent research report.

3.Monolithic Power Systems

$Monolithic Power(MPWR)$ has seen its stock fall 9.3% over the past month. However, the company reported excellent quarterly earnings in February 2024, with continued strong demand for its products. The company is also doing well in innovation, with over 1,700 manufacturing and design patents, and 87% of its revenue comes from Asia.

Considering the improving global economy, analysts seem to agree that the company's current difficulties will dissipate in 2024.

4.Taiwan Semiconductor Manufacturing

$Taiwan Semiconductor Manufacturing(TSM)$ has been trading sideways over the past week but has surged 35.7% so far this year. Based on management's forecast, considering the company's position in the global AI chip market and the rebound expected in the PC and smartphone industries, the company's earnings are expected to rebound significantly in 2024, with revenue and earnings per share expected to grow 23% and 19%, respectively.

5.NVIDIA

$NVIDIA Corp(NVDA)$ is currently the hottest semiconductor and AI stock, with a market capitalization and stock price of $2.4 trillion and $942.89, respectively, as of March 22nd. Its stock has surged 90.4% in 2024. Thanks to the explosion of AI, the company's Hopper H200 Tensor Core GPUs are selling out, with Meta announcing a $10.5 billion purchase of H100 GPUs.

The company's recent quarterly revenue grew 265% year-on-year, and demand for AI servers powered by NVIDIA chips remains strong, so the company is likely to maintain its current high growth trajectory.

6.ON Semiconductor

Despite a 10.6% decline in its stock price this year, $ON Semiconductor(ON)$ remains a favorite in the electric vehicle market due to its market position in power and analog semiconductors and sensors.

ON Semiconductor has a 25% market share in silicon carbide (SiC) chips, and its newly established SiC manufacturing center in South Korea can produce up to 1 million wafers per year. The company's revenue from the automotive and industrial sectors has increased from 68% of its total sales in 2022 to 80% in 2023.

7.Advanced Micro Devices

In the AI chip market, $Advanced Micro Devices(AMD)$ is second only to NVIDIA, and in the PC and server chip market, it is second only to Intel (NASDAQ: INTC).

Under the leadership of CEO Lisa Su, the company's market capitalization has risen from $2 billion a decade ago to $290 billion in March. In addition, AMD has a close relationship with TSMC.

In June 2023, AMD released the MI300X accelerator chip, further deepening the data center AI chip market (the market size is expected to reach $400 billion by 2027), and some analysts expect AI chips will add about $2 billion in sales for the company in 2024.