Tower Semiconductor (NASDAQ:TSEM) and Microchip Technology Incorporated (NASDAQ:MCHP) are two of the top semiconductor stocks that will generate revenue through the rise of autonomous vehicles. Let’s take a look at each of these stocks to determine if either or both are worthy of your investing dollars.You can make money from autonomous vehicles without directly investing in automakers. Buying shares of semiconductor stocks involved in autonomous vehicle technology is an auxiliary play on the overarching worldwide shift to self-driven electric vehicles. The gradual transition to autonomous vehicles is a matter of when rather than if. Even if you are not a fan of vehicles driving people rather than vice versa, there is clearly money to be made in this growing industry.
Tower Semiconductor (TSEM) and Microchip Technology Incorporated (MCHP) are two of the top semiconductor stocks that will generate revenue through the rise of autonomous vehicles. Let’s take a look at each of these stocks to determine if either or both are worthy of your investing dollars.
TSEM makes semiconductor integrated circuits. This $2.2 billion business makes chips used for all sorts of applications. TSEM contributes to the electrical components that are the brains of automated vehicles. About 10% of TSEM sales stem from the automotive space. In particular, the company's components are used in LiDAR and image sensor technologies empower autonomous vehicles to view the spaces around them. Electric vehicles also use TSEM’s tech for power management. This means TSEM has several revenue generators within the autonomous vehicle space alone.