Artificial intelligence was a key talking point in 2023 and many investors look for that trend to continue into 2024. Semiconductors play a pivotal piece in the AI sphere, as they are a critical component for the growing technology.
While the broader market averages are treading water for the most part in early 2024, many chip stocks have continued their strength from 2023. Outlined below are the 10 top performing semiconductor stocks so far in 2024:
- NVIDIA Corporation (NVDA)
- Advanced Micro Devices, Inc. (AMD)
- Marvell Technology, Inc. (MRVL)
- Taiwan Semiconductor Manufacturing Company Limited (TSM)
- VanEck Vectors Semiconductor ETF (SMH)
- Invesco Dynamic Semiconductors ETF (PSI)
- SPDR S&P Semiconductor ETF (XSD)
- Orion Energy Systems, Inc. (OESX)
- Direxion Daily Semiconductor Bull 3X Shares (SOXL)
- Direxion Daily Semiconductor Bear 3X Shares (SOXS)
When it comes to the semiconductor stocks, a bunch of analysts from Wells Fargo, JPMorgan, Canaccord, Susquehanna, Citigroup, BMO, Oppenheimer etc. set price targets for Wolfspeed (WOLF) above $100 per share in late 2023. However, I went against the flow and I did NOT bite the bait regarding the Silicon Carbide (SiC) hype that was associated with WOLF. I also noted in my article below that WOLF was grossly overvalued at $100 per share due to a handful of reasons. I also pointed out in my article above that WOLF’s fair value is $32 per share. WOLF has collapsed over the last months and currently stands at $32 per share.
Analysts and investors are closely watching the performance of semiconductor stocks, with some expressing skepticism about certain stocks while others are optimistic about the industry’s future. The debate continues as the market dynamics evolve, and investors weigh the potential of these chip stocks in the AI and technology landscape.
