Surge in AMD, TSMC, and Broadcom Stocks Fueled by Semiconductor Demand Growth and U.S. Chips Act

Wednesday, 6 March 2024, 17:25

Semiconductor stocks Advanced Micro Devices (AMD), Broadcom (AVGO), and Taiwan Semiconductor Manufacturing Company (TSMC) are on the rise today due to the increasing global semiconductor demand and the anticipated impact of the U.S. Chips Act. Amid a strong start to 2024 in semiconductor sales, the growth trend is expected to continue throughout the year, with notable companies like Nvidia and TSMC leading the way. Investors are advised to focus on valuation amidst this growth, with TSMC appearing as the safest investment option among the three stocks evaluated.
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Surge in AMD, TSMC, and Broadcom Stocks Fueled by Semiconductor Demand Growth and U.S. Chips Act

Semiconductor Demand is Growing

The Semiconductor Industry Association (SIA) reported a 15.2% year-over-year increase in global semiconductor sales for January 2024, signaling promising growth trends.

America First (or at least second)

The U.S. Chips Act is set to provide substantial government subsidies to semiconductor manufacturers, impacting the stock prices of AMD, Broadcom, and TSMC.

  • The U.S. government subsidies awarded under the Chips Act are expected to benefit semiconductor companies, with Intel, Samsung, and TSMC likely to receive significant funds.
  • With TSMC showcasing a more attractive valuation and growth prospects compared to Broadcom and AMD, investors are advised to consider the relative performance and potential risks associated with each stock.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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