5 chip stocks under $100 to buy now

Ongoing global supply chain issues have plagued the growth of the chip industry. Additionally, the industry has witnessed a slowdown in end-market demand due to lower consumer spending amid macroeconomic headwinds.

Declining investor interest in the sector is evident in SPDR S&P Semiconductor ETFs (XSD) Down 12.6% over the past month. Additionally, the Philadelphia Semiconductor Index fell almost 10% in August.

However, the $280 billion CHIPS and Science Act is expected to energize the domestic semiconductor industry. In addition, the global semiconductor market is estimated at increase by 13.9% in 2022 and 4.6% in 2023, thanks to further digitization and automation.

Therefore, investors might consider buying shares of fundamentally sound chip Taiwan Semiconductor Manufacturing Company Limited (TSM), Applied Materials, Inc. (AMAT), MaxLinear, Inc. (MXL), Axcelis Technologies, Inc. (ACLS) and Photronics, Inc. (PLAB), which are currently trading below $100.

Taiwan Semiconductor Manufacturing Company Limited (TSM)

Based in Hsinchu City, Taiwan, TSM manufactures, packages, tests and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, Middle East, Africa, Japan, USA and internationally.

On June 16, 2022, TSM launched its advanced logic, specialty, and 3D IC technologies at the company’s 2022 North American Technology Symposium. TSM also launched the next-generation, state-of-the-art N2 process powered by nanosheet transistors and unique FinFlex™ technology for N3 and N3E processes.

Dr. CC Wei, CEO of TSM, said, “The innovations we will showcase at our technology symposia demonstrate TSMC’s technology leadership and our commitment to supporting our customers through this exciting time of transformation and growth.

TSM’s net revenue was $18.16 billion for the second quarter ended June 30, 2022, up 43.5% year-over-year. Its net profit was $8.10 billion, up 76.4% year-on-year. Also, his PES stood at $0.31, up 76.4% year-over-year.

Analysts expect TSM’s revenue to grow 30% year-over-year to $73.88 billion in 2022. Its EPS is expected to rise 53.9% year-over-year. other to reach $6.34 in 2022. It has exceeded EPS estimates in the previous four quarters. TSM’s stock gained slightly intraday to close the last trading session at $79.66.

TSM’s strong fundamentals are reflected in its POWR Rankings. The stock’s overall B rating is a buy in our proprietary rating system. POWR ratings rate stocks on 118 different factors, each with its own weighting.

TSM has an A grade in quality and a B in growth and sentiment. In category B Semiconductor and wireless chip industry, it is ranked No. 13 out of 94 stocks. Click here for additional POWR ratings for momentum, stability and value for TSM.

Applied Materials, Inc. (AMAT)

AMAT provides manufacturing equipment, services and software to the semiconductor, display and related industries. It operates through three segments: Semiconductor Systems; Applied Global Services; and Billboard and adjacent markets.

On June 16, 2022, AMAT acquired Picosun Oy, a private semiconductor equipment company located in Espoo, Finland. This acquisition aims to enrich AMAT’s technology portfolio and expand the company’s consumer base.

AMAT’s net sales were $6.52 billion for the third quarter ended July 31, 2022, up 5.2% year-over-year. His gross profit was $3.01 billion, up slightly year-over-year. Also, his total assets were $26.16 billion for the period ended July 31, 2022, compared to $25.83 billion for the period ended October 31, 2021.

Street expects AMAT’s revenue to grow 11.4% year-over-year to $25.70 billion in 2022. Its EPS will increase 12.6% year-over-year. the other to reach $7.70 in 2022. AMAT’s stock gained slightly intraday to close the last trading session at $90.64.

AMAT’s overall B rating equates to a buy in our POWR rating system. It has a B rating for feeling and quality. It is ranked No. 34 in the same industry. Beyond what is stated above, we also rated AMAT for Stability, Value, Momentum and Growth. Get all the AMAT ratings here.

MaxLinear, Inc. (MXL)

MXL provides radio frequency, high-performance analog, and mixed-signal communications system-on-chip solutions for the connected home, wired and wireless infrastructure, as well as industrial and multi-market applications worldwide.

On August 10, 2022, MXL and DustPhotonics, a leading developer of silicon photonics technologies and solutions, announced their partnership to launch a silicon photonics chipset with integrated lasers directly driven by a DSP. This new product should expand MXL’s product portfolio.

MXL net revenue was $280.01 million for the second quarter ended June 30, 2022, up 36.3% year-over-year. Its net profit was $31.97 million, up 4,261% year-on-year. Additionally, its EPS came in at $0.40, up 3,900% year-over-year.

MXL revenue is expected to grow 24.9% year-over-year to $1.11 billion for the current year. Its EPS is expected to grow 55.4% year-over-year to $4.18 in 2022. Additionally, it has exceeded EPS estimates in each of the last four quarters. MXL stock lost slightly intraday to close the last trading session at $34.85.

MXL has an overall rating of B, which equates to a buy in our POWR rating system. It has an A rating for growth and a B rating for quality and value. It is ranked #6 in the same industry. We also rated MXL for Momentum, Sentiment and Stability. Get all the MXL ratings here.

Axcelis Technologies, Inc. (ACLS)

ACLS designs, manufactures and services ion implantation equipment and other process equipment used in semiconductor chip manufacturing in the United States, Europe and Asia. For a variety of application requirements, the company provides high-energy, high-current, and medium-current implanters.

On August 3, 2022, President and CEO Mary Puma said, “Axcelis delivered an exceptional second quarter financial performance well above our guidance due to robust demand and our strong execution.

ACLS total revenue was $221.18 million for the second quarter ended June 30, 2022, up 50.2% year-over-year. Its net profit was $44.19 million, up 133.7% year-on-year. Additionally, its EPS came in at $1.32, up 140% year-over-year.

ACLS revenue is expected to grow 32.4% year-over-year to $876.77 million in 2022. Its EPS is expected to grow 63.5% year-over-year to $4.71 in 2022. Additionally, it has exceeded EPS estimates in each of the past four quarters. Over the past year, the stock has gained 28.3% to close the last trading session at $63.15.

ACLS’ overall B rating equates to a buy in our POWR rating system. It has a B rating for value, feeling and quality. It is ranked #15 in the same industry. We also rated ACLS for stability, growth and momentum. Get all ACLS grades here.

Photronics, Inc. (PLAB)

PLAB and its subsidiaries produce and sell photo mask goods and services in the United States, Taiwan, Korea, Europe, China and other countries. It sells its products to semiconductor and FPD manufacturers, designers, foundries and other high performance electronics manufacturers.

On August 30, 2022, Frank Lee, CEO, said, “Customers continue to trust Photronics to support their technology roadmap by delivering the high-quality photomasks required for innovative designs that meet consumer demand.

He added, “We are increasing capacity and volumes while controlling costs and capitalizing on operating leverage to generate higher margins.”

PLAB’s total revenue was $219.95 million for the third quarter ended July 31, 2022, up 28.9% year-over-year. Its net profit was $31.23 million, up 82.9% year-on-year. Additionally, its EPS was $0.51, up 82.1% year-over-year.

Analysts expect PLAB’s revenue to grow 24.2% year-over-year to $824.53 million in 2022. Its EPS is expected to rise 115.1% year-on-year on the other to reach $1.85 in 2022. It has exceeded EPS estimates in the previous four quarters. Over the past year, the stock has gained 12.4% to close the last trading session at $15.69.

PLAB has an overall rating of B, which equates to a buy in our POWR rating system. It has an A rating for value and a B for quality and growth. It is ranked #9 in the same industry. Get PLAB ratings for Stability, Feeling, and Momentum here.


Shares of TSM fell $0.20 (-0.26%) in after-hours trading on Thursday. Year-to-date, TSM is down -34.67%, compared to a -17.25% rise in the benchmark S&P 500 over the same period.

About the Author: Riddhima Chakraborty

Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master’s degree in economics, she helps investors make informed investment decisions with her insightful commentary. After…

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