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Top Semiconductor Stock to Buy in 2024 (That Isn’t Nvidia)

Top Semiconductor Stock to Buy in 2024 (That Isn’t Nvidia)
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NVIDIA has been a standout in the stock market in 2024 with a 145% gain and a brief moment as the world’s most valuable company. However, due to its size and valuation, it may not deliver comparable profit in the second half of the year, leading investors to consider other options like Axcelis Technologies.

Axcelis is a semiconductor service provider with strong growth potential, especially in the AI sector. With AI workloads requiring increased chip capacity, particularly in DRAM and storage chips, Axcelis is well-positioned for future demand. The company has a history of revenue growth and expects to hit a new record of $1.3 billion in 2025.

Compared to other chip stocks, Axcelis remains undervalued with a low price-to-earnings ratio. The company’s shares are cheaper than the industry benchmark and the S&P 500 index, making them an attractive investment opportunity. With the rising demand for AI chips in various devices, including computers and smartphones, Axcelis’s order book is expected to grow in the coming years.

While Axcelis may not be among the top 10 stocks recommended by Stock Advisor analysts, its potential for growth in the AI sector makes it a strong investment choice. The company’s position in the semiconductor industry, coupled with its growth projections, suggests that it could be a valuable addition to investors’ portfolios.

Overall, Axcelis Technologies represents a promising opportunity for investors looking to capitalize on the growing demand for AI-driven technologies. With a solid track record of revenue growth and a favorable valuation compared to its peers, Axcelis is well-positioned for success in the second half of 2024 and beyond.

Article Source
https://finance.yahoo.com/news/1-super-semiconductor-stock-besides-092600380.html

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