According to the Semiconductor Industry Association (SIA), improving economic conditions and booming memory chip market led the worldwide semiconductor sales to grow 10.8% Y-o-Y to $82.7 billion during the second quarter of 2014, and 5.4% over the previous quarter of 2014. The sales increased 11.1% during the first half of 2014 over the same period last year. Moreover, the World Semiconductor Trade Statistics (WSTS) estimates that the global semiconductor sales will witness a growth of 6.5% in 2014, 3.3% in 2015, and 4.3% in 2016.
Today
we have shortlisted 12 high growth semi-conductor stocks that are likely to
outperform their peers and the broader markets by providing strong share price
returns. We have picked stocks which are estimated to register strong growth in sales and EPS in 2014. We note that these stocks have recorded strong growth in sales and EPS during their latest reported quarter. Moreover, these stocks are currently trading at relatively low 1-Yr forward PE ratio compared to their respective indices and provide high return on equity. A majority of these stocks have recorded gains during the past three months recording significant 3-month average trading volume above 100,000 shares.
|
Company Name |
Exchange |
Ticker |
Market Cap |
Last Price |
Average Volume |
Price Change |
Latest Quarter Sales Growth |
Latest Quarter EPS Growth |
Sales Growth (2014E) |
EPS Growth (2014E) |
1-Yr Fwd |
Return On Equity |
|
Norsat International Inc |
TSX |
NII |
29.7 |
0.51 |
66,556 |
-1.9% |
11.5% |
0.0% |
2.4% |
60.0% |
5.8 |
21.2% |
|
Sandvine Corp |
TSX |
SVC |
512.5 |
3.41 |
609,360 |
-9.8% |
26.3% |
383.3% |
22.0% |
77.0% |
17.6 |
15.8% |
|
ON Semiconductor Corp |
NASDAQ |
ONNN |
3,784.9 |
8.58 |
6,495,806 |
-2.3% |
10.1% |
81.8% |
9.6% |
43.4% |
10.7 |
15.8% |
|
Amkor Technology Inc |
NASDAQ |
AMKR |
2,176.6 |
9.18 |
2,308,259 |
0.0% |
2.9% |
16.7% |
7.0% |
39.3% |
12.2 |
13.8% |
|
Silicon Motion Technology |
NASDAQ |
SIMO |
834.7 |
24.76 |
462,487 |
53.3% |
19.0% |
78.3% |
24.5% |
42.0% |
16.5 |
12.2% |
|
Super Micro Computer Inc |
NASDAQ |
SMCI |
1,113.8 |
24.79 |
464,132 |
32.0% |
32.8% |
85.0% |
23.5% |
29.6% |
14.3 |
11.4% |
|
SYNNEX Corp |
NYSE |
SNX |
2,591.1 |
66.12 |
276,234 |
2.3% |
33.3% |
21.4% |
24.2% |
41.9% |
11.1 |
11.3% |
|
Ultra Clean Holdings Inc |
NASDAQ |
UCTT |
284.2 |
9.63 |
279,727 |
15.2% |
20.5% |
150.0% |
17.7% |
57.2% |
11.6 |
10.5% |
|
Teradyne Inc |
NYSE |
TER |
3,833.6 |
18.73 |
2,324,287 |
3.9% |
22.5% |
48.6% |
16.1% |
16.1% |
15.2 |
9.8% |
|
InterDigital Inc/PA |
NASDAQ |
IDCC |
1,733.6 |
43.53 |
513,628 |
23.3% |
186.9% |
786.4% |
21.7% |
108.6% |
16.3 |
9.4% |
|
Nova Measuring Instruments |
NASDAQ |
NVMI |
297.5 |
10.73 |
92,672 |
0.2% |
16.6% |
110.0% |
12.4% |
39.8% |
14.8 |
8.6% |
|
RF Micro Devices Inc |
NASDAQ |
RFMD |
3,267.4 |
11.36 |
10,452,527 |
25.8% |
8.0% |
1300.0% |
16.5% |
119.8% |
11.2 |
7.2% |
Source: Bloomberg
Market Cap and Last Price are in their respective currencies
Company Description:
Norsat International Inc (TSX: NII)
Norsat International Inc. designs, engineers, and distributes products for use in the satellite wireless communications industry. The company supplies satellite signal receivers, transmitters, and other ground station equipment. Norsat also develops components and systems to the satellite broadband Internet protocol market, as well as specializes in voice and data products and services.
Sandvine Corp (TSX: SVC)
Sandvine Corporation develops and markets broadband network management tools for broadband Internet services providers.
ON Semiconductor Corp (NASDAQ: ONNN)
ON Semiconductor Corporation supplies analog, standard logic, and discrete semiconductors for data and power management.The company’s products include integrated circuits, and analog ICs. ON also offers discrete semiconductors in a variety of surface mount and standard packages.
Amkor Technology Inc (NASDAQ: AMKR)
Amkor Technology, Inc. provides semiconductor packaging and test services. The company offers deep submicron wafer fabrication, wafer probe testing, integrated circuit packaging assembly and design, final testing, reliability testing, burn-in, and electrical characterization.
Silicon Motion Technology Corp (NASDAQ: SIMO)
Silicon Motion Technology Corporation is a semiconductor company that designs, develops, and markets semiconductor products for the multimedia consumer electronics market. The company’s products include controllers used in mobile storage media and multimedia systems on a chip.
Super Micro Computer Inc (NASDAQ: SMCI)
Super Micro Computer, Inc. designs, develops, manufactures and sells server solutions based on modular and open-standard x86 architecture. The company’s products include servers, motherboards, chassis, and accessories.
SYNNEX Corp (NYSE: SNX)
SYNNEX Corporation provides information technology supply chain services. The company offers services to original equipment manufacturers and software publishers worldwide. SYNNEX offers product distribution, related logistics services, and contract assembly.
Ultra Clean Holdings Inc (NASDAQ: UCTT)
Ultra Clean Holdings, Inc. develops and supplies critical subsystems for the semiconductor capital equipment industry, focusing on gas delivery systems. These gas delivery systems enable the precise delivery of specialty gases used in a majority of the key steps in the semiconductor manufacturing process.
Teradyne Inc (NYSE: TER)
Teradyne, Inc. designs, manufactures, sells, and supports semiconductor test products and services on a world-wide basis. The company’s test equipment products and services include: semiconductor test systems, military/aerospace test instrumentation and systems, circuit-board test and inspection systems and automotive diagnostic and test systems.
InterDigital Inc/PA (NASDAQ: IDCC)
InterDigital, Inc. develops technology for advanced digital wireless telecommunications applications. The company offers both time division multiple access and wide band code division multiple access proprietary and standards compliant digital wireless technology to customers, licensees, and companies.
Nova Measuring Instruments Ltd (NASDAQ: NVMI)
Nova Measuring Instruments Ltd. develops, produces, and markets monitoring and measurement systems for the semiconductor manufacturing industry. The company provides integrated monitoring and process control systems for other integrated circuit manufacturing processes.
RF Micro Devices Inc (NASDAQ: RFMD)
RF Micro Devices, Inc. designs, develops, and markets proprietary radio frequency integrated circuits. The company’s products are used for wireless communications applications such as cellular and PCS, cordless telephony, wireless LANs, wireless local loop, industrial radios, wireless security and remote meter reading.
