High demand for electric vehicles and consumer electronics, coupled with global chip shortage, is helping the semiconductor industry thrive. Wall Street analysts expect low-priced semiconductor stocks Resonant (NASDAQ:RESN) and Summit (WISA) to more than double in the near term. Therefore, it could be worth adding these stocks to your watchlist.The rising demand for semiconductor chips from several industries such as automotive and electronics has created a massive imbalance between supply and demand. The resultant increase in prices has been favorable for the semiconductor industry. As a result, semiconductor stocks are gaining investors’ attention. This is evident from the SPDR S&P Semiconductor ETF’s (XSD) 18.1% gains over the past three months versus the SPDR S&P 500 Trust ETF’s (SPY) 6.4% returns.
While the semiconductor manufacturers are increasing production to meet the high demand with government support, the supply shortage may not end anytime soon. The increasing need for advanced devices, featuring a wide range of innovative technologies, such as artificial intelligence (AI), 5G connectivity, and the internet of things (IoT), should keep the demand for semiconductors. According to the Fortune Business Insights report, the global semiconductor market is projected to grow at a CAGR of 8.6% between 2021 and 2028.
Given this backdrop, Wall Street analysts expect under-$5 semiconductor stocks Resonant Inc . (RESN) and Summit Wireless Technologies, Inc. (WISA) to more than double in the next 12 months.