Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

1 Semiconductor Stock to Keep an Eye On and 2 to Turn Down

MRVL Cover Image

Semiconductors are the picks and shovels of modern technology. The way we live and work is also changing with AI, which is creating secular demand for more powerful chips. This theme has led to decent stock price performance as the industry’s six-month gain of 4.5% has nearly mirrored the S&P 500.

Regardless of these results, investors must exercise caution as the rapid pace of innovation can easily turn today’s winners into tomorrow’s losers. Taking that into account, here is one resilient semiconductor stock at the top of our wish list and two we’re swiping left on.

Two SemiconductorStocks to Sell:

Teradyne (TER)

Market Cap: $15.28 billion

Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ: TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.

Why Does TER Fall Short?

  1. Sales trends were unexciting over the last five years as its 3% annual growth was below the typical semiconductor company
  2. Estimated sales growth of 2.6% for the next 12 months is soft and implies weaker demand
  3. Efficiency has decreased over the last five years as its operating margin fell by 7.9 percentage points

Teradyne’s stock price of $95.94 implies a valuation ratio of 26.4x forward P/E. If you’re considering TER for your portfolio, see our FREE research report to learn more.

IPG Photonics (IPGP)

Market Cap: $3.16 billion

Both a designer and manufacturer of its products, IPG Photonics (NASDAQ: IPGP) is a provider of high-performance fiber lasers used for cutting, welding, and processing raw materials.

Why Is IPGP Risky?

  1. Annual sales declines of 5.3% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Operating profits fell over the last five years as its sales dropped and it struggled to adjust its fixed costs
  3. Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 20.8% annually, worse than its revenue

At $75 per share, IPG Photonics trades at 46x forward P/E. Read our free research report to see why you should think twice about including IPGP in your portfolio.

One Semiconductor Stock to Watch:

Marvell Technology (MRVL)

Market Cap: $62.52 billion

Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology (NASDAQ: MRVL) is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos.

Why Does MRVL Stand Out?

  1. Annual revenue growth of 18.9% over the last five years was superb and indicates its market share increased during this cycle
  2. Market share is on track to rise over the next 12 months as its 31.8% projected revenue growth implies demand will accelerate from its two-year trend
  3. Additional sales over the last five years increased its profitability as the 23.5% annual growth in its earnings per share outpaced its revenue

Marvell Technology is trading at $72.60 per share, or 24.4x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

Donald Trump’s victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs.

While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today

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