Advertisement
Canada markets closed
  • S&P/TSX

    21,639.10
    -59.01 (-0.27%)
     
  • S&P 500

    5,431.60
    -2.14 (-0.04%)
     
  • DOW

    38,589.16
    -57.94 (-0.15%)
     
  • CAD/USD

    0.7281
    +0.0001 (+0.02%)
     
  • CRUDE OIL

    78.49
    -0.13 (-0.17%)
     
  • Bitcoin CAD

    91,121.79
    +884.34 (+0.98%)
     
  • CMC Crypto 200

    1,405.73
    -12.15 (-0.86%)
     
  • GOLD FUTURES

    2,348.40
    +30.40 (+1.31%)
     
  • RUSSELL 2000

    2,006.16
    -32.75 (-1.61%)
     
  • 10-Yr Bond

    4.2130
    -0.0250 (-0.59%)
     
  • NASDAQ

    17,688.88
    +21.32 (+0.12%)
     
  • VOLATILITY

    12.66
    +0.72 (+6.03%)
     
  • FTSE

    8,146.86
    -16.81 (-0.21%)
     
  • NIKKEI 225

    38,814.56
    +94.09 (+0.24%)
     
  • CAD/EUR

    0.6798
    +0.0024 (+0.35%)
     

2 Semiconductor Stocks to Buy and Hold for Great Long-Term Potential

Different industries to invest in
Image source: Getty Images

Written by Amy Legate-Wolfe at The Motley Fool Canada

If you were to ask me what semiconductors were just a few years ago, I would have looked at you like a confused puppy. Yet since then, those even semi-interested in the market likely know what semiconductors are. Or if not, they’ve certainly heard of major semiconductor stock winner Nvidia (NASDAQ:NVDA).

Shares of Nvidia stock surged in the last year as artificial intelligence (AI) interest surged. Because what AI companies need, and will always need, are semiconductors. Yet even without AI, suddenly investors became aware as to just why we need semiconductors in every aspect of our lives.

Why semiconductors

As mentioned, semiconductors are part of all aspects of our society. In fact, semiconductors are the backbone of modern technology. As technology continues to advance, the demand for semiconductors increases. From smartphones to autonomous vehicles, semiconductors are integral components in a wide array of products and industries.

ADVERTISEMENT

What’s more, it’s not just from AI. With the use of the Internet of Things (IoT), cloud computing, and 5G technology, the demand for semiconductors is expected to remain robust. This sustained demand creates a favourable environment for semiconductor companies.

Furthermore, the semiconductor industry operates within a complex global supply chain. Certain geopolitical events or disruptions can lead to supply shortages, driving up the prices of semiconductor stocks. Additionally, the consolidation within the industry can provide opportunities for well-positioned companies to capture market share and drive growth. And all this positions investors for long-term growth.

But, which semiconductor stocks are the best?

Celestica

Of all the semiconductor stocks out there, even Nvidia stock couldn’t beat the growth seen by Celestica (TSX:CLS) in the last year. Shares of CLS stock are up 344% in the last year at the time of writing this article. All thanks to semiconductor stock interest.

The company is an electronics manufacturing services (EMS) company, providing a range of manufacturing services and solutions to global customers in various industries, including aerospace and defence, automotive, communications, computing, healthcare, industrial, and semiconductor.

What’s more, the company continues to look valuable even with a higher share price.  The company recently reported its first quarter, increasing its full-year guidance for 2024 far above expectations. Overall, CLS stock simply looks like a well-managed, solid semiconductor stock with a strong long-term outlook. So don’t let that 344% scare you off. There could certainly be more to come.

BlackBerry

Former meme-stock and smartphone maker BlackBerry (TSX:BB) is another long-term winner in the semiconductor industry, especially for its interest in QNX software. While BlackBerry stock isn’t a semiconductor manufacturer itself, it has had a significant relationship with the semiconductor industry, particularly in its earlier years when it was known for its BlackBerry smartphones.

Since its acquisition of QNX Software Systems in 2010, the company has become the leading provider of real-time operating systems, middleware, development tools, and services for embedded systems, including automotive infotainment systems, industrial automation, medical devices, and more. While QNX itself does not manufacture semiconductors, its software solutions are often integrated into systems that use semiconductor components.

And what’s more, BlackBerry stock is finally seeing some positive growth again. Shares jumped on strong earnings that far outpaced estimates for the first quarter of 2024. As shares continue to climb on strong semiconductor demand, BlackBerry stock could climb once more to heights not seen since 2021.

The post 2 Semiconductor Stocks to Buy and Hold for Great Long-Term Potential appeared first on The Motley Fool Canada.

Should you invest $1,000 in Nvidia right now?

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $15,578.55!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 32 percentage points since 2013*.

See the 10 stocks * Returns as of 3/20/24

More reading

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Nvidia. The Motley Fool has a disclosure policy.

2024