Stock Alert: 3 Semiconductor Closing Prices to Buy for Massive Gains

It is understandable why most of the investors’ attention in the chip sector is currently focused on NVIDIA (NASDAQ:NVDA). The company continues to exceed earnings expectations and is the king of this field – without a doubt.

The thing is, there are plenty of other AI stocks to invest in right now. This sector is as big and diversified as it gets.

So I’m going to focus on three companies that have a chance to capture their own unique growth areas in the market right now. Here are three semiconductor stocks to buy that I think deserve more attention right now in this AI-driven market.

ASML Holdings (ASML)

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Founded over 40 years ago, Netherlands–based ASML Holdings (NASDAQ:ASML) aims to revolutionize and further develop semiconductor tooling systems. The company is big in the areas of metrology, inspection systems and lithography. ASML shares rose 40% last year, outperforming the S&P 500 Indices gains. Despite a decline in earnings after the first quarter, it is up 26% year to date, outperforming the SPX.

The Dutch semiconductor equipment leader announced its dividend increase plans at the end of April. ASML’s board of directors declared a final dividend of €1.75 per ordinary share, which corresponds to an annual dividend of €6.10 and a yield of around 0.60%. With a cautious payout ratio of 32.5%, ASML retains room for growth and potential dividend increases.

In addition, the company announced its share buyback program, which aims to buy back its own shares by the end of 2025.

Qualcomm (QCOM)

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Qualcomm (NASDAQ:QCOM), a reasonably valued chipmaker with a P/E ratio of 28.02, boasts a yield of 1.69% and 22 consecutive years of dividend increases. Over the past decade, the company has maintained an annual dividend growth rate of 7.3%.

On Wednesday, Qualcomm unveiled its latest innovation, the Snapdragon X Plus laptop processor, which integrates AI features to improve market competition. With over 37% faster CPU performance and 54% lower power consumption, the chip works well on any of QCOM’s Snapdragon X series, including the AI-powered Snapdragon X Elite.

The Snapdragon chip has recently been praised for its AI improvements in video and photography features, and the advancements put the company in a good light amid growing demand for AI chips.

Taiwan Semiconductor (TSM)

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With an increase of 54% since the beginning of the year Taiwan Semiconductor (NYSE:TSM) remains a favorite for chips, but they are undervalued. The company is also in demand for its advanced technology in 3mm and 5mm chips. With AI-enabled phones like the anticipated iPhone 16 driving sales, TSM’s potential in the semiconductor market should not be underestimated.

At the North America Technology Symposium 2024 on April 24, TSMC unveiled its latest semiconductor advancements, including A16™ technology with nanosheet transistors for improved logic density and performance by 2026. In addition, the company introduced System-on-Wafer (TSMC-SoW™) technology to meet AI needs in hyperscaler data centers.

The company is also a cornerstone in the semiconductor sector, supplying many companies directly. Despite concerns about the “China threat” and domestic shifts, its robust financials and $40 billion investment in U.S. chip production demonstrate resilience. With strong revenue growth, solid margins and high demand for advanced nodes, TSM remains a top choice for semiconductor exposure.

As of the publication date, Chris MacDonald did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s disclosure policies.