These Semiconductor Stocks Tick All the Boxes

The Horrible Year, 2022, is behind us now, fading into the rear-view mirror of memory and good riddance. Markets fell hard over the past 12 months, with a 19% drop in the S&P 500 and a 33% collapse in the tech-oriented NASDAQ. But the indexes are averages – and the losses, however broad-based, don’t mean that every individual stock is facing hard times or further losses ahead.

We can get a handle on those stocks with solid prospects, but we’ll need a tool to sort through the accumulated reams of market data. The Smart Score, based on the TipRanks algorithms, does just that – and more. The tool also collates the data according to 8 factors all known to match up with future outperformance, and then it places the combined data on a simple scale of 1 to 10. Investors can get a snapshot of any stock, just by checking the Smart Score – and a ‘Perfect 10’ score will clearly indicate a stock that deserves a closer look.

So we’ve gone and done just that. Using the Smart Score tool to browse the thousands of publicly traded stocks, we’ve found two that feature a Perfect 10. Interestingly enough, each is a semiconductor chip company, underscoring the vital role that chips continue to play in the economy despite their ongoing supply chain crunch and shortages. Each also features a Strong Buy consensus rating and upwards of 30% upside potential for the coming year. It’s not just a perfect score, it’s a perfect combination of bullish indicators.

Fresh from the TipRanks database, here are the details on these two ‘Perfect 10’ chip stocks.

Taiwan Semiconductor Manufacturing (TSM)

We’ll start with a leader in the semiconductor chip industry, Taiwan Semiconductor. This company is one of the largest, in one of Taiwan’s largest industries. The island is a huge supplier of semiconductor chips, and hosts numerous chip design and manufacturing companies, especially the foundries that make chips on contract for outside designers. TSM, with its $379 billion market cap, is a perennial peer of the world’s largest semiconductor chip firms.

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