Best Semiconductor Stocks To Buy In May

Key Insights

• The world’s focus on chips has not helped stocks of semiconductor companies in recent months. 
• Micron shares suffered a serious pullback, and the stock is trading at just 5 forward P/E. 
• In Intel’s case, markets focused on the company’s heavy spending, but the stock could attract value-oriented players who are willing to bet on Intel’s rebound. 

The world markets continue to suffer from chip shortage, but shares of semiconductor companies have been recently moving lower. As a result, some semiconductor stocks declined to attractive valuation levels.

Micron

Shares of Micron  peaked near the $98 level at the start of this year and have recently made several attempts to settle below the $66 level.

Interestingly, analyst estimates have been moving higher in recent months. Currently, Micron is expected to report earnings of $9.56 per share in the current year and $12.53 per share in the next year, so the stock is trading at just 5 forward P/E.

It looks that the recent weakness has been caused by general sell-off in the tech segment rather than by the company’s own problems. In this light, Micron stock would have a good chance to gain solid upside momentum when the general market begins to rebound from lows.

Intel

Unlike Micron, Intel has some internal problems. The company is making significant investments and expects that profit margins will be lower before rebounding in 2025.

Not surprisingly, analyst estimates have been declining in recent months. The company is expected to report earnings of $3.61 per share in the next year, so the stock is trading at 11 forward P/E.

Intel stock has not traded at current levels since 2017. The company remains one of the world’s tech leaders, and it looks that its shares could attract value-oriented players who are willing to bet on Intel’s rebound in the longer term.

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