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Best Semiconductor Stocks to Buy Now (2022)

Top semiconductor stocks in 2022 ranked by overall Zen Score. See the best semiconductor stocks to buy now, according to analyst forecasts for the semiconductors industry.

According to Zen Score, the 3 best semiconductor stocks to buy right now are:

Taiwan Semiconductor Manufacturing Co (NYSE:TSM) is the top semiconductor stock with a Zen Score of 71, which is 26 points higher than the semiconductor industry average of 45. It passed 28 out of 38 due diligence checks and has strong fundamentals. Taiwan Semiconductor Manufacturing Co has seen its stock lose -36.42% over the past year, underperforming other semiconductor stocks by -6 percentage points.

Taiwan Semiconductor Manufacturing Co has an average 1 year price target of $126.00, an upside of 70.57% from Taiwan Semiconductor Manufacturing Co's current stock price of $73.87.

Taiwan Semiconductor Manufacturing Co stock has a consensus Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Taiwan Semiconductor Manufacturing Co, 33.33% have issued a Strong Buy rating, 0% have issued a Buy, 66.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Onto Innovation (NYSE:ONTO) is the second best semiconductor stock with a Zen Score of 69, which is 24 points higher than the semiconductor industry average of 45. It passed 22 out of 33 due diligence checks and has strong fundamentals. Onto Innovation has seen its stock lose -15.38% over the past year, overperforming other semiconductor stocks by 15 percentage points.

Onto Innovation has an average 1 year price target of $102.50, an upside of 55.12% from Onto Innovation's current stock price of $66.08.

Onto Innovation stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Onto Innovation, 50% have issued a Strong Buy rating, 50% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Synaptics (NASDAQ:SYNA) is the third best semiconductor stock with a Zen Score of 68, which is 23 points higher than the semiconductor industry average of 45. It passed 22 out of 33 due diligence checks and has strong fundamentals. Synaptics has seen its stock lose -46.08% over the past year, underperforming other semiconductor stocks by -16 percentage points.

Synaptics has an average 1 year price target of $221.43, an upside of 119.35% from Synaptics's current stock price of $100.95.

Synaptics stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 8 analysts covering Synaptics, 62.5% have issued a Strong Buy rating, 25% have issued a Buy, 12.5% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 22 semiconductor stocks that have issued dividends in the past year, the 3 semiconductor stocks with the highest dividend yields are:

Himax Technologies (NASDAQ:HIMX) has an annual dividend yield of 24.37%, which is 20 percentage points higher than the semiconductor industry average of 4.07%. Himax Technologies's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Himax Technologies's dividend has shown consistent growth over the last 10 years.

Chipmos Technologies (NASDAQ:IMOS) has an annual dividend yield of 14.93%, which is 11 percentage points higher than the semiconductor industry average of 4.07%. Chipmos Technologies's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Chipmos Technologies's dividend has shown consistent growth over the last 10 years.

Chipmos Technologies's dividend payout ratio of 33.1% indicates that its high dividend yield is sustainable for the long-term.

Nve (NASDAQ:NVEC) has an annual dividend yield of 8.37%, which is 4 percentage points higher than the semiconductor industry average of 4.07%. Nve's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Nve's dividend has not shown consistent growth over the last 10 years.

Nve's dividend payout ratio of 128.2% indicates that its high dividend yield might not be sustainable for the long-term.

Semiconductor stocks were down -1.46% in the last day, and down -6.04% over the last week. Valens Semiconductor was the among the top losers in the semiconductors industry, dropping -7.75% yesterday.

Shares of several companies in the broader tech sector are trading lower amid a rise in treasury yields as traders continue to assess Wednesday's Fed commentary and 75 bps rate hike. Rising rates decrease the present value of future cash flows, which negatively impacts growth stock valuations.

Based on WallStreetZen's Valuation Score, the 3 most undervalued semiconductor stocks right now are:

Chipmos Technologies (NASDAQ:IMOS) is the most undervalued semiconductor stock based on WallStreetZen's Valuation Score. Chipmos Technologies has a valuation score of 100, which is 54 points higher than the semiconductor industry average of 46. It passed 7 out of 7 valuation due diligence checks.

Chipmos Technologies's stock has dropped -48.46% in the past year. It has underperformed other stocks in the semiconductor industry by -18 percentage points.

Smart Global Holdings (NASDAQ:SGH) is the second most undervalued semiconductor stock based on WallStreetZen's Valuation Score. Smart Global Holdings has a valuation score of 100, which is 54 points higher than the semiconductor industry average of 46. It passed 7 out of 7 valuation due diligence checks.

Smart Global Holdings's stock has dropped -34.09% in the past year. It has underperformed other stocks in the semiconductor industry by -4 percentage points.

Skyworks Solutions (NASDAQ:SWKS) is the third most undervalued semiconductor stock based on WallStreetZen's Valuation Score. Skyworks Solutions has a valuation score of 86, which is 40 points higher than the semiconductor industry average of 46. It passed 6 out of 7 valuation due diligence checks.

Skyworks Solutions's stock has dropped -45.58% in the past year. It has underperformed other stocks in the semiconductor industry by -15 percentage points.