Investment Manager’s Guide: Top Semiconductor Stocks to Buy on the Dip in 2024
Recession concerns and geopolitical tensions have caused chip stocks to fall since July. As an expert, I analyze why investors are selling winners and identify three semiconductor stocks to consider buying on the dip.
NVIDIA (NVDA): Despite a 111% increase in 2024, NVDA stock is down 22% in the last 30 days. Competitors like AMD are eyeing market share due to production delays, but NVIDIA remains well-positioned to overcome short-term impacts.
ARM Holdings (ARM): Up 55% since its IPO, ARM stock has dropped more than 32% in the last month. With cautious guidance and short interest rising, investors may be hesitant. However, ARM’s role in chip design and dominance in premium smartphones make it a promising buy on the dip.
Applied Materials (AMAT): AMAT stock is up 37% in the last year but has fallen over 20% in the last month. Providing innovative solutions to chipmakers, AMAT’s upcoming EPIC center and earnings report could drive the stock higher.
In conclusion, understanding the factors influencing semiconductor stocks’ performance is crucial for investors. By identifying opportunities to buy on the dip, individuals can potentially benefit from market fluctuations and position themselves for long-term growth in the semiconductor industry.