3 Semiconductor Stocks Outperforming NVIDIA in 2021

NASDAQ: INTC | Intel Corporation News, Ratings, and Charts

INTC – In 2020, massive demand for technology-related products and services drove semiconductor stocks higher. Nvidia Inc. (NVDA), a leading chipmaker, benefited handsomely from the surge in chip demand. However, ongoing scrutiny of an acquisition it made has pressured its stock this year. Also, NVDA isn’t pinning its hopes on significant growth in its business from the cryptocurrency industry. Thus, we think investors seeking better semiconductor stocks should consider Intel (INTC), Micron (MU), and Skyworks Solutions (SWKS). These are companies with resilient business models and robust fundamentals, and we believe they have the potential to outshine NVDA through the remainder of 2021.

The new normal, with its growing dependence on technology during the COVID-19 pandemic, has done wonders for the semiconductor industry. Advanced chipsets, which power IT products and devices, have seen heavy demand—and not just for consumer electronics; demand for processors is emanating from segments including electric vehicles, 5G, and cloud computing.

As one of the world’s leading chipmakers, Nvidia Inc. (NVDA) has witnessed strong demand in the GPU space amid the pandemic. During the fourth quarter, ended January 31, NVDA’s revenue climbed 61% year-over-year to $5 billion and exceeded analyst expectations. Investors were also hopeful that the company would gain  from selling cryptocurrency-oriented cards to industrial miners.

However, NVDA’s CEO Jensen Huang downplayed the company’s cryptocurrency activity, noting that, “We expect that to be a small part of our business as we go forward.” Also, the company’s $40 billion ARM acquisition is being scrutinized by the European Union and the U.K. Hence, NVDA has a level of uncertainty surrounding it.

Therefore, we think investors seeking to extract gains from semiconductor stocks should  look at companies such as Intel Corporation (INTC), Micron Technology, Inc. (MU), and Skyworks Solutions, Inc. (SWKS) that have clearer growth prospects. These stocks performed consistently well last year and could outdo NVDA through the remainder of this year.

Click here to checkout our Semiconductor Industry Report for 2021

Intel Corporation (INTC)

INTC is a global semiconductor leader that  develops and markets  solutions for the cloud, smart, and connected devices for retail, industrial, and consumer uses. DCG, IOTG, Mobileye, NSG, PSG, CCG are the segments in which the company operates. The company also provides Internet of Things (IoT) products that include high-performance computing solutions for targeted verticals and  embedded applications.

During the fourth quarter, ended December 31, 2020, INTC’s revenue fell 1% year-over-year to $20 billion. Its EPS for the quarter declined to $1.42 from $1.58 posted in the same period last year. INTC’s data-centric business unit’s revenue declined  11% year-over-year, while its PC-centric business climbed 9% to $10.9 billion. The company has begun production of 10nm-based 3rd Gen Intel® Xeon® Scalable processors (“Ice Lake”). It has also ventured into the discrete graphics market with Intel® Iris® Xe MAX graphics, its first Xe-based discrete GPU.

Analysts expect the company’s revenue for the quarter ending March 31, 2021 to be $17.5 billion, representing  an 11.5% year-over-year decline. Its EPS is likely to grow at the rate of 5.4% per annum over the next five years.

INTC has climbed 26% on a year-to-date basis to close yesterday’s trading session at $61.24. Over the past six months, the stock gained 23.8%.

INTC’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.

INTC has an A grade for Value and Quality, and a B grade for Sentiment and Momentum. Of the 99 stocks in the B-rated Semiconductor & Wireless Chip industry, it is ranked #15.

In addition to the POWR Ratings grades I’ve just highlighted, you can see INTC ratings for Growth and Stability, here.

Micron Technology, Inc. (MU)

MU is involved in designing, manufacturing, and selling  memory and storage products globally. Its Compute and  Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit are the four segments through which the company operates. Memory products for the cloud server, client, graphics, enterprise, and networking markets, are some of the products that MU produces.

In February, MU announced the appointment of Linnie Haynesworth to its board of directors. Haynesworth brings in more than 30 years of experience in technology, including aerospace and cybersecurity.

During the first quarter, ended December 2020, MU’s revenue climbed 12.2% year-over-year to $5.8 billion, driven by DRAM and NAND technologies. Its EPS for the quarter climbed to $0.71 from $0.43 posted in the same period last year. MU ended the quarter with cash and cash equivalents of $8.36 billion. 

Analysts expect MU’s revenue for the quarter ending February 28 to be $5.8 billion, representing  a 22.2% year-over-year increase. Its EPS is expected to grow at the rate of 25.1% per annum over the next five years.

MU ended yesterday’s trading session at $91.09, advancing 26% year-to-date. During the past six months, MU rallied 107.1%.

MU’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating,  which equates to Buy in our proprietary rating system. It has a B for Momentum, Value and Sentiment. It is ranked #38 in the Semiconductor & Wireless Chip industry.

In total, we rate MU on eight different levels. Beyond what we’ve stated above we have also given MU grades for Stability, Growth, and Quality. Get all the MU ratings here.

Skyworks Solutions, Inc. (SWKS)

SWKS is involved in designing, developing, manufacturing, and selling proprietary semiconductor products in the U.S. , China, South Korea, Taiwan, Africa and Europe. The company’s product portfolio includes amplifiers, antenna tuners, attenuators, demodulators, detectors, and diodes.

During the fourth quarter, ended October 2, 2020, SWKS’s revenue climbed 16% year-over-year to $957 million. Its EPS for the quarter declined to $1.46 from $1.85 posted in the prior year period. Its president and CEO, Liam K. Griffin, stated, “With 5G technology launches now well under way, we are ramping our innovative Sky5® solutions in a rapidly expanding set of end markets, from mobile to IoT, automotive and wireless infrastructure.”

A consensus revenue estimate for the quarter ending March 31, 2021 is $1.2 billion, representing  a 50.3% increase year-over-year. Meanwhile, its EPS is likely to increase 75.4% to $2.35.

Year-to-date, SWKS gained 22% to end yesterday’s trading session at $179.9. Over the past six months, the stock has climbed 27.3%.

SWKS’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. SWKS has a Growth, Sentiment, and Quality Grade of B. In the Semiconductor & Wireless Chip industry, it is ranked #14.

Click here to see the additional POWR Ratings for SWKS (Stability, Momentum and Value).

Click here to checkout our Semiconductor Industry Report for 2021

Want More Great Investing Ideas?

“MUST OWN” Growth Stocks for 2021

How to Ride the 2021 Stock Market Bubble

5 WINNING Stocks Chart Patterns

K.I.S.S. for the March Stock Market


INTC shares were trading at $60.98 per share on Wednesday afternoon, down $0.26 (-0.42%). Year-to-date, INTC has gained 23.87%, versus a 3.10% rise in the benchmark S&P 500 index during the same period.


About the Author: Namrata Sen Chanda


Namrata is an accomplished financial journalist, with nearly a decade of experience. She specializes in interpreting news releases and framing investment strategies, and has worked with some of the leading companies in real estate, banking, insurance, mutual funds, financial research, fintech, and investment education. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
INTCGet RatingGet RatingGet Rating
MUGet RatingGet RatingGet Rating
SWKSGet RatingGet RatingGet Rating
NVDAGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

3 Energy Stocks Set to Soar Beyond Expectations

Given the geopolitical tensions, increasing global oil demand, and supply adjustments, the energy sector is poised for robust growth. Therefore, investors might consider investing in energy stocks TechnipFMC (FTI), Weatherford International (WFRD), and ChampionX (CHX), which are poised to exceed expectations. Keep reading…

Has Carnival (CCL) Stock Turned Into a Buy After Earnings Release?

Carnival Corporation (CCL) reported record revenue in its most recent quarter but still faces a negative bottom line. The collapse of Francis Scott Key Bridge brings more uncertainty to its financials. Given these events, what stance should one take with CCL stock? Read more to find out…

3 China Stocks Positioned for Long-Term Growth

Despite facing challenges, the Chinese economy has demonstrated resilience, as evidenced by recent robust industrial output and retail sales data. Given this outlook, it might be an opportune time to own three top-notch China stocks, JD.com, Inc. (JD), China Automotive Systems (CAAS), and Youdao, Inc. (DAO). Read on…

Investor Alert: “Buy the Rumor, Sell the News!”

Everyone knows that the Fed is going to cut rates at some point this year. That is the worst kept secret on the planet helping to explain how we keep making new highs for the for the S&P 500 (SPY). Unfortunately that creates an interesting predicament for stocks after rates are cut. Plus another hurdle in the 2024 Presidential election. Steve Reitmeister is here to share his insights on the market outlook along with a preview of his top 12 stocks to outperform. Read on for more...

Read More Stories

More Intel Corporation (INTC) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All INTC News