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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:

UNITED MICROELECTRONICS (NYSE:UMC) is the top semiconductor stock with a Zen Score of 73, which is 27 points higher than the semiconductor industry average of 46. It passed 28 out of 38 due diligence checks and has strong fundamentals. UNITED MICROELECTRONICS has seen its stock lose -22.96% over the past year, underperforming other semiconductor stocks by -12 percentage points.

UNITED MICROELECTRONICS stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering UNITED MICROELECTRONICS, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

TAIWAN SEMICONDUCTOR MANUFACTURING (NYSE:TSM) is the second best semiconductor stock with a Zen Score of 70, which is 24 points higher than the semiconductor industry average of 46. It passed 27 out of 38 due diligence checks and has strong fundamentals. TAIWAN SEMICONDUCTOR MANUFACTURING has seen its stock lose -26.71% over the past year, underperforming other semiconductor stocks by -16 percentage points.

TAIWAN SEMICONDUCTOR MANUFACTURING has an average 1 year price target of $131.67, an upside of 53.24% from TAIWAN SEMICONDUCTOR MANUFACTURING's current stock price of $85.92.

TAIWAN SEMICONDUCTOR MANUFACTURING stock has a consensus Buy recommendation according to Wall Street analysts. Of the 4 analysts covering TAIWAN SEMICONDUCTOR MANUFACTURING, 25% have issued a Strong Buy rating, 25% have issued a Buy, 50% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

DIODES (NASDAQ:DIOD) is the third best semiconductor stock with a Zen Score of 66, which is 20 points higher than the semiconductor industry average of 46. It passed 21 out of 33 due diligence checks and has strong fundamentals. DIODES has seen its stock lose -14.88% over the past year, underperforming other semiconductor stocks by -4 percentage points.

DIODES has an average 1 year price target of $100.00, an upside of 50.6% from DIODES's current stock price of $66.40.

DIODES stock has a consensus Hold recommendation according to Wall Street analysts. Of the 1 analyst covering DIODES, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 23 semiconductor stocks that have issued dividends in the past year, the 3 semiconductor stocks with the highest dividend yields are:

NVE (NASDAQ:NVEC) has an annual dividend yield of 8.33%, which is 6 percentage points higher than the semiconductor industry average of 2.38%. 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 133.3% indicates that its high dividend yield might not be sustainable for the long-term.

CHIPMOS TECHNOLOGIES (NASDAQ:IMOS) has an annual dividend yield of 4.98%, which is 3 percentage points higher than the semiconductor industry average of 2.38%. 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.

UNITED MICROELECTRONICS (NYSE:UMC) has an annual dividend yield of 3.88%, which is 2 percentage points higher than the semiconductor industry average of 2.38%. UNITED MICROELECTRONICS's dividend payout is not stable, having dropped more than 10% four times in the last 10 years. UNITED MICROELECTRONICS's dividend has shown consistent growth over the last 10 years.

UNITED MICROELECTRONICS's dividend payout ratio of 33.5% indicates that its dividend yield is sustainable for the long-term.

Semiconductor stocks were up 4.12% in the last day, and up 4.87% over the last week. WISA TECHNOLOGIES was the among the top gainers in the semiconductors industry, gaining 32.89% yesterday.

Shares of several companies in the broader technology sector are trading higher as stocks rebound following steep losses in recent weeks. The tech sector has been under pressure amid Fed rate hike policy, which has weighed on 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 55 points higher than the semiconductor industry average of 45. It passed 7 out of 7 valuation due diligence checks.

CHIPMOS TECHNOLOGIES's stock has dropped -8.76% in the past year. It has overperformed other stocks in the semiconductor industry by 2 percentage points.

EMCORE (NASDAQ:EMKR) is the second most undervalued semiconductor stock based on WallStreetZen's Valuation Score. EMCORE has a valuation score of 100, which is 55 points higher than the semiconductor industry average of 45. It passed 7 out of 7 valuation due diligence checks.

EMCORE's stock has dropped -66.63% in the past year. It has underperformed other stocks in the semiconductor industry by -55 percentage points.

QORVO (NASDAQ:QRVO) is the third most undervalued semiconductor stock based on WallStreetZen's Valuation Score. QORVO has a valuation score of 86, which is 41 points higher than the semiconductor industry average of 45. It passed 6 out of 7 valuation due diligence checks.

QORVO's stock has dropped -46.49% in the past year. It has underperformed other stocks in the semiconductor industry by -35 percentage points.