5 Solid Semiconductor Stocks to Buy on Rebounding Sales

Industry Overview - The semiconductor industry is experiencing a rebound in sales, with global semiconductor sales reaching $46.2 billion in February, a 16.3% increase year over year from $39.7 billion in February 2023 [1] - Despite the year-over-year growth, sales fell 3.1% from January's total of $47.6 billion [1] - Regionally, sales increased by 28.8% in China, 22% in the Americas, and 15.4% in Asia Pacific, while Europe saw a decline of 8.5% [1] - The industry's growth has faced challenges due to rising costs, supply-chain disruptions, and higher interest rates, but demand is rebounding as inflation eases [2] Future Outlook - The ongoing enthusiasm for artificial intelligence (AI), particularly generative AI, is expected to drive semiconductor sales in the near term, with experts believing that AI has significant potential yet to be realized [2] - Gartner forecasts global semiconductor revenues to increase by 16.8% this year, totaling $624 billion [2] Company Highlights - NVIDIA Corporation (NVDA): Expected earnings growth rate of 14.1% for next year, with a 19.5% improvement in the current-year earnings estimate over the last 60 days. NVDA is a leader in visual computing technologies and has shifted focus towards AI-based solutions [3] - Lam Research Corporation (LRCX): Expected earnings growth rate of 19.9% for next year, with a 0.4% improvement in the current-year earnings estimate over the last 60 days. LRCX supplies wafer fabrication equipment and services to semiconductor manufacturers [4] - Applied Materials, Inc. (AMAT): Expected earnings growth rate of 15.6% for next year, with a 6.1% improvement in the current-year earnings estimate over the last 60 days. AMAT is a major supplier of equipment for semiconductor fabrication [5] - Micron Technology, Inc. (MU): Expected earnings growth rate of 717.5% for next year, with a 235.6% improvement in the current-year earnings estimate over the last 60 days. MU is a leading provider of semiconductor memory solutions [6] - ACM Research, Inc. (ACMR): Expected earnings growth rate of 38.9% for next year, with a 20.9% improvement in the current-year earnings estimate over the last 60 days. ACMR specializes in single-wafer wet cleaning equipment for semiconductor manufacturing [6]