From Nasdaq:

Semiconductor stocks like AMD, Broadcom, and TSMC are rebounding after a recent dip, with shares rising 2.8%, 2.8%, and 5.1% respectively due to growing global demand for semiconductors and the U.S. government’s Chips Act providing subsidies to manufacturers. Sales are up 15.2% year-over-year, prompting optimism for continued growth in 2024.

The U.S. and China lead in semiconductor sales growth, with China up 26.6% and the U.S. up 20.3%. The Chips Act will provide subsidies to companies like Intel, Samsung, and TSMC, while it remains unclear how much AMD and Broadcom will benefit. TSMC has the most attractive valuation at 26 times earnings compared to Broadcom’s 41 times and AMD’s 387 times, with TSMC also having the lowest projected earnings growth rate at 11%.

For investors looking to capitalize on the semiconductor industry, TSMC is a safe bet with positive earnings potential. The market is favoring companies like NVIDIA and its contract manufacturer TSMC, while potential subsidies under the U.S. Chips Act could benefit top semiconductor manufacturers. Watch for more information on who will benefit from the subsidies and consider valuations when making investment decisions.



Read more at Nasdaq: Why AMD, TSMC, and Broadcom Stocks Are All Up Today