When thinking about an industry group in the stock market, you can look ahead at sales and profit estimates, or you can look back to see which companies have been faring best by common measures. In October, estimated sales figures for 60 chip makers and manufacturers of related equipment showed that analysts expected Nvidia Corp.
NVDA,
-1.79%
to have the fastest pace of sales growth through calendar 2025.
Nvidia took the industry lead last year through its dominance of the market for graphics processing units (GPU) being deployed by data centers to support their corporate customers’ rollout of artificial intelligence technology. Nvidia’s stock returned 239% in 2023, while the iShares Semiconductor ETF
SOXX,
which tracks the PHLX Semiconductor Index of 30 stocks
SOX,
returned 67%. It was a good year for the broad stock market, with the SPDR S&P 500 ETF Trust
SPY
returning 26%. Now we are taking a look back — but not very far back — to see which semiconductor companies have shown improved pricing power while also increasing their operating profitability.Screening the semiconductor industry for two factors We began the screen with the 30 companies whose stocks are held within the SOXX portfolio, then added the 30 additional companies in the S&P Composite 1500 Index
XX:SP1500
that are in the semiconductor industry, as determined by FactSet, or in the Semiconductors and Semiconductor Equipment Global Industry Classification Standard group. The S&P Composite 1500 is made up of the S&P 500
SPX,
the S&P MidCap 400
MID
and the S&P SmallCap 600
SML.
The Ratings Game: AMD earnings could make its pricey stock even more expensive, this analyst says We screened the 60 semiconductor companies for the following:
Improved gross profit margins. A company’s gross margin is its net sales, less the cost of goods or services sold, divided by sales. Net sales are sales minus returns and discounts. The cost of goods or services sold includes the actual costs of making the items or providing the services. An expanding gross margin is a good sign — some companies are forc …
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NVDA,
-1.79%
to have the fastest pace of sales growth through calendar 2025.
Nvidia took the industry lead last year through its dominance of the market for graphics processing units (GPU) being deployed by data centers to support their corporate customers’ rollout of artificial intelligence technology. Nvidia’s stock returned 239% in 2023, while the iShares Semiconductor ETF
SOXX,
which tracks the PHLX Semiconductor Index of 30 stocks
SOX,
returned 67%. It was a good year for the broad stock market, with the SPDR S&P 500 ETF Trust
SPY
returning 26%. Now we are taking a look back — but not very far back — to see which semiconductor companies have shown improved pricing power while also increasing their operating profitability.Screening the semiconductor industry for two factors We began the screen with the 30 companies whose stocks are held within the SOXX portfolio, then added the 30 additional companies in the S&P Composite 1500 Index
XX:SP1500
that are in the semiconductor industry, as determined by FactSet, or in the Semiconductors and Semiconductor Equipment Global Industry Classification Standard group. The S&P Composite 1500 is made up of the S&P 500
SPX,
the S&P MidCap 400
MID
and the S&P SmallCap 600
SML.
The Ratings Game: AMD earnings could make its pricey stock even more expensive, this analyst says We screened the 60 semiconductor companies for the following:
Improved gross profit margins. A company’s gross margin is its net sales, less the cost of goods or services sold, divided by sales. Net sales are sales minus returns and discounts. The cost of goods or services sold includes the actual costs of making the items or providing the services. An expanding gross margin is a good sign — some companies are forc …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]