The worldwide chip shortage has wrecked havoc on industries such as automobiles and PC makers, but has greatly benefited the stock prices of semiconductor companies. Since the shortage still remains, investors should consider top chip stocks such as Broadcom (NASDAQ:AVGO), Renesas Electronics (RNECF), and STMicroelectronics N.V. (STM).The semiconductor industry is rallying. The demand for semiconductors continues to rise, supply cannot keep pace, and there appears to be a potentially lengthy imbalance developing between the two. If the semiconductor shortage continues into 2022, the industry could continue to climb.
However, there is no guarantee that the semiconductor companies will continue to maintain their profit margins amidst ever-changing market dynamics. If you're looking to invest in chip stocks, make sure to choose the stocks with the best chances of maintaining and capturing additional market share.
Let's take a look at three A-rated semiconductor stocks to consider adding to your portfolio: Broadcom (AVGO), Renesas Electronics Corporation (RNECF), and STMicroelectronics N.V. (STM).