(C) Reuters. 3 Cheap Semiconductor Stocks to Buy on Market Dips
Semiconductor production is one of today’s most vital industries with the vast adoption of digital technologies across sectors. Because a current semiconductor shortage is expected to be addressed gradually with large-scale investments to boost production, we think fundamentally strong semiconductor stocks STMicroelectronics (STM), Amkor (NASDAQ:AMKR), and ChipMOS (IMOS) could be worth buying on market dips to cash in on the industry’s solid growth prospects. These stocks look undervalued at their current price levels and could deliver gains soon. Read on.The global semiconductor shortage has created production bottlenecks in several industries, especially the consumer electronics and electric vehicle (EV) spaces. However, the popularity of remote working structures and digital transformation has created a substantial demand for semiconductors worldwide.
The Biden Administration has proposed a $52 billion investment to boost semiconductor production. Moreover, other governments and industry giants worldwide are investing heavily to keep pace with the growing demand. According to recent research from International Data Corp. (IDC), the global semiconductor market is expected to grow 17.3% year-over-year in 2021.
Given this backdrop, we think the quality semiconductor stocks STMicroelectronics N.V. (STM), Amkor Technology , Inc. (AMKR), and ChipMOS TECHNOLOGIES INC. (IMOS) could be solid bets on every market dip. These stocks currently look undervalued, given their growth potential.
3 Cheap Semiconductor Stocks to Buy on Market Dips
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