The worldwide chip industry has evolved into a critical component of the smart ecosystem. In June 2021, semiconductor sales totaled more than $44 billion. Similarly, sales in the second quarter of 2021 totaled $133 billion, up 29% year over year. According to World Semiconductor Trade Statistics, global chip consumption will increase by over 20% in 2021 and by nearly 9% in 2022. Micron Technology, NVIDIA Corporation, and Taiwan Semiconductor Manufacturing Company Limited are among the companies prepared to capitalize on the worldwide chip scarcity.
Here is Insider Monkey’s list of the 10 stocks that benefit from global chip shortage. ASML Holding N.V. is ranked tenth. The company is based in the Netherlands and sells innovative semiconductor equipment systems. JPMorgan kept its Overweight rating on ASML and boosted the price target from EUR700 to EUR780. KLA Corporation is rated ninth. The company offers semiconductor manufacturers control and yield management systems. 45 hedge funds owned $1.3 billion in KLA Corporation at the end of the second quarter of 2021. Broadcom Inc. is a semiconductor infrastructure software company based in California. It is ranked eighth on the list of the top ten equities benefiting from the worldwide chip scarcity. Truist kept the stock at a Buy rating and increased the price objective to $564 from $554. NXP Semiconductors N.V. is a semiconductor company established in the Netherlands. It is rated eighth. With 1 million shares valued at more than $212 million, Fisher Asset Management is a major stakeholder. Advanced Micro Devices, Inc. is ranked sixth. Citadel Investment Group, based in Chicago, is a major shareholder in AMD, owning 28 million shares worth more than $2.6 billion. For more details, click 10 Stocks That Benefit From Global Chip Shortage.
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