3 Top Chip Stocks to Supplement Your Nvidia and AMD Position
The semiconductor industry is being hit hard. Proof is piling up that consumers are slowing their spend on electronics (after two years of a spending spree on work-from-home updates). A possible recession is also weighing on investor sentiment, casting doubt on the sustainability of business spending on tech hardware. High-flyers Nvidia (NASDAQ: NVDA) and AMD (NASDAQ: AMD) are being hit particularly hard, with each down 51% and 49%, respectively, through the first half of 2022.
Such cycles are the norm for chip stocks, though, and incredible value can be found. That's why three Fool.com contributors think chip fab equipment leader Applied Materials (NASDAQ: AMAT), automotive chip design and manufacturer NXP Semiconductor (NASDAQ: NXPI), and display materials and tech licensor Universal Display (NASDAQ: OLED) are a great way to supplement existing chip stock positions.
Nicholas Rossolillo (Applied Materials): Shares of Applied Materials were sinking like a stone in sympathy with Nvidia and other chip stocks to kick off the month of July. Why? Thank Micron Technology (NASDAQ: MU), manufacturer of basic commodity memory chips that are used in everything from graphics cards to tablets to cloud-computing servers. Micron cited slowing consumer demand for some devices when it issued weaker-than-expected guidance for its summer quarter.
Source Fool.com
