Semiconductor stocks are surging higher in 2023, with many already up double digits in January.
Here are 3 companies under large accumulation this year.
First is Broadcom (AVGO) which is a large semiconductor supplier and maker of infrastructure software solutions. The stock is up over 4% in 2023, but more impressive is its 30% climb the last 3 months.
Healthy institutional accumulation has likely helped vault the shares higher, which you can see below. Since November there’ve been 5 unusually large volume inflows (green bars):
Value investors may see the reasonable 12-month forward P/E of 13.8 as attractive. Additionally, a 3.2% dividend yield could be enticing.
One thing is for sure, the shares have been in demand lately.
Next up is ASML Holding NV (ASML) which is a large semiconductor equipment developer: including lithography, metrology, & inspection systems. The stock has jumped 23% in 2023 and over 45% the last 3 months.
Large accumulation in the shares has likely helped the uptrend. Since November there’ve been 7 days where the stock jumped in price alongside outsized volumes. That can mean there’s institutional interest:
The 12-month forward P/E is pegged at 32.4X according to FactSet. The shares pay a modest .8% dividend yield.
This price action suggests investors are expecting growth for the company in 2023.
The number 3 semiconductor firm racing higher this year is Aehr Test Systems (AEHR). This smaller-cap company designs and manufacturers test and burn-in products for the semiconductor industry. The market cap is just under $900 million.
The stock has been a major outperformer recently, jumping 72% in 2023. The shares have seen 9 large inflow signals since October:
There’s no question the stock could be extended at these levels. However, this is one of the most in-demand stocks according to MAPsignals research.
Strong sector leadership could mean there’s more upside for the group in 2023.
AVGO, ASML, & AEHR represent 3 of the top performing semiconductor stocks so far in 2023. Healthy institutional accumulation signals make these stocks worthy of extra attention.
To learn more about MAPsignals’ institutional process please visit: www.mapsignals.com
Disclosure: As of the time of this writing, the author holds no positions in AVGO, ASML or AEHR at the time of this writing.
Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.