In the ever-changing arena of investing, opportunities often arise in unexpected places. While big-name companies like Nvidia grab the headlines with their meteoric rises, a lesser-known but equally promising segment within the semiconductor sector is catching the attention of savvy investors.
In 2023, the market witnessed a resurgence in the semiconductor industry, fueled by the ongoing revolution in artificial intelligence (AI). 2024 has since picked up right where 2023 left off. Nvidia, a frontrunner in this space, has soared to new heights, claiming its spot as the third most valuable company globally. With a staggering 50% surge in just three months and a jaw-dropping 220% increase over the past year, Nvidia's performance speaks volumes about the potential of AI-driven technologies.
But a hidden gem has emerged amidst the spotlight on industry giants, shaking up the semiconductor landscape. Super Micro Computer, a relatively lesser-known player, has sent shockwaves through the market with its remarkable earnings beat. The result? A phenomenal 200% surge in stock price over the last month and an astonishing 1000% growth over the previous year.
There are intriguing opportunities for investors keen on exploring the semiconductor sector without breaking the bank. Here are five semiconductor stocks priced under $10, each with buy ratings from analysts.
5 Semi stocks under $10
Magnachip Semiconductor (NYSE: MX)
Magnachip Semiconductor Corporation specializes in designing and manufacturing analog and mixed-signal semiconductor platform solutions for various applications such as communications, the Internet of Things (IoT), consumer electronics, industrial uses, and automotive technologies. Their product offerings include display solutions like source and gate drivers and timing controllers for various flat panel displays utilized in mobile devices, automotive systems, and more.
The company has a market capitalization of $253 million and is trading at the low end of its 52-week range. Based on two analyst ratings, MX has a buy rating and consensus price target of $11.50, forecasting an upside of over 75%.
Himax Technologies (NASDAQ: HIMX)
Himax Technologies, Inc., a semiconductor company operating without its own manufacturing facilities (fabless), offers advanced display imaging processing technologies across various regions, including China, Taiwan, the Philippines, Korea, Japan, Europe, and the United States. The company's operations are divided into two segments: Driver IC and Non-Driver Products.
Like MX, shares of HIMX are also trading near the low end of its 52-week range. However, HIMX possesses a more significant market capitalization of just under $1 billion. Based on one analyst, the semiconductor company has a buy rating and price target forecasting almost 50% upside.
ASE Technology Holding Co., Ltd. and its subsidiaries offer global semiconductor packaging and testing services. Additionally, they provide electronic manufacturing services across various regions, including the United States, Taiwan, Asia, and Europe. Their diverse services include real estate development and management, substrate production, information software, equipment leasing, investment advisory, warehousing management, and trading of computer and communication peripherals, electronic components, and telecommunications equipment.
Shares of ASE Technology are up double-digits over the previous three months and trading near the high end of its 52-week range. The company has a $20.85 billion valuation and a moderate buy rating based on two analyst ratings.
Arteris, Inc. delivers semiconductor interconnect intellectual property (IP) solutions globally. Specializing in on-chip interconnect fabric technology for System-on-Chip (SoC) and Network-on-Chip (NoC) designs, the company develops, licenses, and supports various IP deployment solutions. Their product lineup includes FlexNoC and FlexWay silicon-proven interconnect IP products, Ncore for cache-coherent interconnect IP, and CodaCache for last-level cache semiconductor IP.
Based on three analyst ratings, the company has a buy rating and price target forecasting just over 100% upside. Shares have impressed lately, with the stock climbing 72% over the previous three months and up over 30% year-to-date.
Navitas Semiconductor (NASDAQ: NVTS)
Navitas Semiconductor Corporation specializes in designing, developing, and marketing gallium nitride power integrated circuits, silicon carbide, high-speed silicon system controllers, and digital isolators for power conversion and charging applications. Their products find utility across various sectors, including mobile, consumer electronics, data centers, solar energy, electric vehicles, industrial motor drives, smart grids, and transportation.
While the stock has increased over 15% over the previous year, it has fallen over 16% year-to-date. Notably, the stock has experienced significant insider selling and possesses a considerable short interest of 11.44%. However, despite the decline, analysts have placed a consensus moderate buy rating on the stock and price target forecasting an almost 50% upside.
