Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
🙌 It's Here: the Only Stock Screener You'll Ever Need Get Started
ASML Holding vs. Broadcom: Which Semiconductor Stock is a Better Buy?
Published Sep 09, 2021 04:24PM ET
Updated Sep 09, 2021 05:30PM ET
© Reuters. ASML Holding vs. Broadcom: Which Semiconductor Stock is a Better Buy?
Because the demand for semiconductors is increasing rapidly, huge investments are being made by governments and enterprises to address a supply shortage. We think the industry’s solid growth should benefit ASML (ASML) and Broadcom (NASDAQ:AVGO). But which of these stocks is a better buy now? Let’s discuss.ASML Holding N.V. (NASDAQ:ASML) in Veldhoven, the Netherlands, and San Jose, Calif.-based Broadcom Inc. (AVGO) are two prominent players in the semiconductor industry. ASML develops, sells, and services advanced semiconductor equipment systems, focusing on lithography-related systems worldwide. It caters mainly to the makers of memory chips and logic chips. In comparison, AVGO designs and supplies a range of analog and digital semiconductor connectivity solutions used in data center networking, home connectivity, broadband access, telecommunications equipment, smartphones, and base stations.
The heightened demand for semiconductor chips from various industries, mainly automotive and consumer electronics, amid a global chip supply crunch has driven prices higher. However, the industry recorded 29% year-over-year sales growth in July 2021. And because rising government and corporate investments in the semiconductor industry should gradually address the supply crunch, the industry should witness solid growth. The global semiconductor market is expected to grow at 7.7% CAGR to $778 billion by 2026. So, both ASML and AVGO should benefit.
While AVGO’s shares have gained 12.9% in price year-to-date, ASML has surged 75.9%. ASML is a clear winner with 9.5% price gains versus AVGO’s 1.8% returns in terms of their past month’s performance. But which of these stocks is a better pick now? Let’s find out.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.