Buy These 4 Semiconductor Stocks Before They Surge Even Higher By StockNews

Huge investments made by governments and enterprises worldwide to ramp up production should drive the semiconductor industry’s growth. Therefore, fundamentally sound semiconductor companies Wolfspeed (WOLF), Silicon Laboratories (NASDAQ:), SiTime (SITM), and MaxLinear (MXL), whose shares have soared in price over the past month, could continue rallying. Read on for details.Even though the current semiconductor chip shortage affects several industries worldwide, the semiconductor industry witnessed 27.6% year-over-year sales growth in the third quarter. And although the industry is facing production logjams, increasing corporate investments and efforts made by governments to address this shortage should help it achieve a solid production rebound.

Also, technological breakthroughs, such as manufacturing chips that use a 3 nm process that consumes low power and offers low latency and better performance, should drive the industry’s growth. Investor interest in this space is evidenced by the SPDR S&P Semiconductor ETF’s (XSD) 22.6% gains over the past month. The global semiconductor market is expected to grow at a 7.7% CAGR to $778 billion by 2026.

Given this backdrop, we think fundamentally sound semiconductor stocks Wolfspeed, Inc. (WOLF), Silicon Laboratories Inc. (SLAB), SiTime Corporation (NASDAQ:), and MaxLinear, Inc. (MXL), which have rallied by more than 35% in price over the past month, should continue advancing. Therefore, we think these stocks could be solid additions to one’s portfolio now.

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