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 Worth Investigating and 2 We Question

QCOM Cover Image

Semiconductors are the picks and shovels of modern technology. Compute-intensive AI workloads are also priming them for the next wave of secular growth, a trend that has supported the industry over the past six months as its 6.3% return has closely followed the S&P 500.

Although these businesses have produced results lately, investors should tread carefully as not all companies are equipped for the next technological innovation. On that note, here is one semiconductor stock poised to generate sustainable market-beating returns and two we’re swiping left on.

Two Semiconductor Stocks to Sell:

Magnachip (MX)

Market Cap: $96.99 million

With its technology found in common consumer electronics such as TVs and smartphones, Magnachip Semiconductor (NYSE: MX) is a provider of analog and mixed-signal semiconductors.

Why Do We Think MX Will Underperform?

  1. Annual sales declines of 16.3% for the past five years show its products and services struggled to connect with the market during this cycle
  2. Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 11.1 percentage points
  3. Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution

At $2.71 per share, Magnachip trades at 0.5x forward price-to-sales. Read our free research report to see why you should think twice about including MX in your portfolio.

Kulicke and Soffa (KLIC)

Market Cap: $1.85 billion

Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices

Why Are We Out on KLIC?

  1. Products and services are facing significant end-market challenges during this cycle as sales have declined by 10.8% annually over the last two years
  2. Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 23.4 percentage points
  3. Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term

Kulicke and Soffa’s stock price of $35.42 implies a valuation ratio of 33.5x forward P/E. To fully understand why you should be careful with KLIC, check out our full research report (it’s free).

One Semiconductor Stock to Watch:

Qualcomm (QCOM)

Market Cap: $159.2 billion

Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm (NASDAQ: QCOM) is a leading innovator and a fabless manufacturer of wireless technology chips used in smartphones, autos and internet of things appliances.

Why Do We Like QCOM?

  1. Annual revenue growth of 16.6% over the past five years was outstanding, reflecting market share gains this cycle
  2. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends
  3. ROIC punches in at 51.2%, illustrating management’s expertise in identifying profitable investments

Qualcomm is trading at $147.52 per share, or 12.6x forward P/E. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.

Stocks We Like Even More

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 9 Market-Beating Stocks. 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-small-cap company Exlservice (+354% 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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