From Nasdaq: 2024-07-10 21:06:05

The artificial intelligence (AI) market continues its winning streak, projected to grow at a CAGR of 14.9% to reach $2.06 trillion by 2032. Semiconductor chips are a critical part of the AI ecosystem, driving the industry forward with necessary processing power. Fed Chair Jerome Powell’s hints at a rate cut in September could further boost growth in this sector.

Broadcom (AVGO) leads the semiconductor market with a $806.8 billion market cap, offering a dividend yield of 1.21%. Revenue and earnings beat estimates, with a CAGR of 31.33% in revenues and 32.65% in EPS over the past decade. AI-related chip sales soared by 280%, securing Broadcom’s dominant position in the market.

Microchip Technology (MCHP) maintains a strong presence in microcontrollers, with a $49.5 billion market cap and a dividend yield of 1.96%. Despite a challenging fiscal fourth quarter, MCHP has been raising dividends consistently for 21 years. The company’s proactive measures aim to address current inventory issues and fuel future growth.

Analog Devices (ADI) offers cutting-edge semiconductor technology, yielding a dividend of 1.59% and a market cap of $115.1 billion. Solid fiscal second-quarter results beat expectations, with a CAGR of 14.61% in revenue and 11.54% in EPS over the past 10 years. Optimistic guidance and a growing order backlog position ADI for continued success in the semiconductor industry.



Read more at Nasdaq: 3 Best Semiconductor Stocks for Dividend Investors