The semiconductor industry did well in 2021 as demand continued to do better than supplies. This trend helped push most semiconductor stocks higher. While a lot of focus is given to companies like Taiwan Semiconductor, Nvidia, and AMD, the industry is significantly big. So, let us look at the best three undercovered semi stocks for 2022.
Analog Devices (NASDAQ: ADI) is a leading semiconductor company that offers some of the key parts in the industry. While the company is known for its calculators, they actually make a small portion of its total business.
The company sells products like analog and mixed-signal converters, power management and reference products, amplifiers and radio frequency products, sensors and actuators, and digital signal processing and system products. Because of the complexity of these products, Analog faces little competition.
Analog’s products are available in most computing devices in use today. This explains why its sales for the last financial year jumped from about $5.2 billion to $7.2 billion. The jump was also partly because of its acquisition of Maxim Integrated Products. Its growing revenue and net income makes Analog a good semi stock to buy in 2022.
Texas Instruments (NASDAQ: TXN) is a large semiconductor company valued at more than $177 billion. Like Analog Devices, the company builds products that are widely used in the computing industry globally.
The company designs and manufactures tens of products in more than 30 countries around the world. Its two reportable segments are analog and embedded processing, which brought $10 billion and $2.57 billion in revenue in 2020.
Analog products change real-world signals like sound, temperature, and pressure and convert them into a stream of digital data that can be processed by other semiconductors. Embedded products are the digital brains of many technology products and devices. Most of these products are sold to industrial companies followed by automotive, personal electronics, communication, and enterprise.
Marvel Technology (NASDAQ: MRVL) is a $76 billion semiconductor company. Its stock price jumped by about 85% in 2021, making it one of the best-performing companies.
Marvell is a semiconductor company that focuses on the automotive, carrier, data center, and enterprise industries. Its products include ethernet solutions, processors, storage controllers, and fibre channel products.
Marvell has seen its annual revenue grow from about $2.3 billion in 2017 to more than $3.9 billion. While its losses have increased, the management has a clear path to become profitable again. This makes it a good semi stock to buy in 2022.