5 Cheap Semiconductor Stocks

In the ever-changing investment arena, opportunities often arise in unexpected places. While big-name companies like Nvidia grab headlines with their meteoric growth, a lesser-known but equally promising segment within the semiconductor industry is attracting the attention of savvy investors.

In 2023, the market witnessed a renaissance of the semiconductor industry, fueled by the ongoing revolution in the field of artificial intelligence (AI). 2024 has since picked up right where 2023 left off. Nvidia, a leader in this space, has risen to new heights, reclaiming its place as the third most valuable company globally. With an incredible 50% increase in just three months and a staggering 220% increase over the past year, Nvidia’s performance speaks volumes about the potential of AI-based technologies.

But a hidden gem has emerged under the spotlight of industry giants, shaking up the semiconductor landscape. Super Micro Computer, a relatively lesser-known player, shocked the market with its impressive gains. The result? A phenomenal 200% increase in the share price in the last month and an astonishing 1000% growth over the previous year.

There are exciting opportunities for investors keen to explore the semiconductor sector without breaking the bank. Here are five semiconductor stocks priced under $10, each with buy ratings from analysts.

5 Semi-Shares Under $10

Magnachip semiconductor New York Stock Exchange: MX

Magnachip Semiconductor Corporation specializes in the design and manufacturing of analog and mixed-signal semiconductor platform solutions for various applications such as communications, Internet of Things (IoT), consumer electronics, industrial uses and automotive technologies. Their product offerings include display solutions such as source and gate drivers and timing controllers for various flat panel displays used in mobile devices, automotive systems and more.

The company has a market capitalization of $253 million and is trading at the low end of its 52-week range. Based on ratings from two analysts, MX has a Buy rating and a consensus price target of $11.50, predicting an upside of more than 75%.

Himax Technologies NASDAQ:HIMX

Himax Technologies, Inc., a semiconductor company operating without its own manufacturing facilities (fabless), offers advanced display image processing technologies in various regions, including China, Taiwan, Philippines, Korea, Japan, Europe and the United States United. The company’s operations are divided into two segments: Driver IC and Non-Driver Products.

Like MX, HIMX stock is also trading near the low end of its 52-week range. However, HIMX has a more significant market capitalization of just under $1 billion. The semiconductor company has a buy rating and a price target of nearly 50% upside, according to one analyst.

ASE technology New York Stock Exchange: ASX

ASE Technology Holding Co., Ltd. and its subsidiaries offer global semiconductor packaging and testing services. Furthermore, they provide electronic manufacturing services in various regions, including the United States, Taiwan, Asia and Europe. Their diverse services include real estate development and management, substrate manufacturing, information software, equipment leasing, investment consulting, warehouse management, and trading in computer and communications peripherals, electronic components, and telecommunications equipment.

ASE Technology shares have risen by double digits over the past three months and have been trading near the high end of its 52-week range. The company has a valuation of $20.85 billion and a Moderate Buy rating based on two analyst ratings.

Arteris NASDAQ:AIP

Arteris, Inc. provides semiconductor interconnect intellectual property (IP) solutions globally. Specializing in on-chip interconnect fabric technology for System-on-Chip (SoC) and Network-on-Chip (NoC) designs, the company develops, licenses and supports various IP deployment solutions. Their product line includes proven FlexNoC and FlexWay interconnect IP products, Ncore for cache-coherent interconnect IP, and CodaCache for last-level cache semiconductor IP.

Based on three analyst ratings, the company has a buy rating and a price target of just over 100% upside. Shares have impressed lately, with the stock rising 72% in the previous three months and more than 30% year to date.

Semiconductor energy NASDAQ:NVTS

Navitas Semiconductor Corporation specializes in the design, development and marketing of gallium nitride, silicon carbide power integrated circuits, high-speed silicon system controllers and digital isolators for power conversion and charging applications. Their products find utility in various industries, including mobile telephony, consumer electronics, data centers, solar energy, electric vehicles, industrial motor drives, smart grids and transportation.

While the stock is up more than 15% from the previous year, it is down more than 16% year to date. Notably, the stock has undergone significant insider selling and holds a sizable short interest of 11.44%. However, despite the decline, analysts have assigned a Moderate Buy consensus to the stock and the target price calls for an upside of almost 50%.

Before you consider ASE technology, you’ll want to hear it.

MarketBeat tracks Wall Street’s highest-rated and best-performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market takes hold… and ASE Technology wasn’t on the list.

While ASE Technology currently has a “Moderate Buy” rating among analysts, top analysts believe these five stocks are better buys.

View the five stocks here