3 Semiconductor Stocks That Could Be Millionaire-Makers: May Edition

Industry Overview - The semiconductor industry is crucial for powering various devices and has been outperforming the stock market for years, with a recent boost from the AI boom [1] - Some semiconductor stocks have reached trillion-dollar valuations, prompting investors to focus on those likely to deliver positive future results [1] Broadcom (AVGO) - Broadcom has significantly benefited from the AI boom, with shares up 28% year-to-date and 444% over the past five years [2] - The company offers a 1.51% yield and has maintained a 17.49% annualized dividend growth rate over the past five years [2] - Recent earnings report showed a 34% year-over-year revenue increase, aided by the integration of VMware, and a share repurchase of $8.29 billion [2] - Analysts rate Broadcom as a strong buy with a projected 13% upside and a highest price target of $1,720 per share, suggesting a potential 23% rally [3] Synopsys (SNPS) - Synopsys is nearing a $100 billion market cap, with shares up 18% year-to-date and over 400% in the last five years [4] - The stock has a P/E ratio of 65 and rising profit margins, with analysts rating it as a strong buy and projecting an 11% upside [4] - The company reported 15% year-over-year revenue growth in Q2 of fiscal year 2024 and 26% growth in GAAP EPS, exceeding guidance [5] - Synopsys is expected to strengthen its position in the semiconductor industry through its planned acquisition of Ansys, which has received shareholder approval [5] Nvidia (NVDA) - Nvidia reported a staggering 262% year-over-year revenue increase and a 628% rise in net income for Q1 of fiscal year 2025 [6] - Although sequential revenue growth has slowed to 18% quarter-over-quarter, the company is expected to maintain exceptional year-over-year results throughout fiscal 2025 [6] - Nvidia's net profit margins exceeded 50%, leading to a 150% increase in its dividend, although the yield remains low at 0.015% [6] - The stock is up 116% year-to-date and has gained over 2,700% in the past five years, with a market cap of $2.5 trillion, positioning it to potentially surpass Microsoft as the world's most valuable publicly traded company [7]