2024 Sector Watch: Semiconductors


2024 has the potential to emerge as a banner year for the semiconductor stock sector, fueled by a convergence of factors that promise to reshape the industry landscape. 

With increasing demand for advanced electronic devices, the continued expansion of 5G networks, and the proliferation of artificial intelligence applications, semiconductor companies find themselves at the heart of a technological revolution. 

As the world becomes more digitally connected and reliant on cutting-edge technology, semiconductor stocks are poised to ride a wave of growth and innovation, positioning themselves for a remarkable year ahead.

After a brief dip in early January, the Van Eck Semiconductor ETF (SMH) continued on its bullish trajectory that has boosted share prices an impressive 78% since January 2023.

In a recent report from Reuters, the current rally in the semiconductor sector was fueled by Taiwan Semiconductor (TSM) citing strong demand for high-end AI chips.

Taiwan Semiconductor Manufacturing Company Limited (TSM), often referred to as TSMC, is the world’s largest and one of the most influential semiconductor foundries. TSMC plays a pivotal role in the global semiconductor industry by manufacturing cutting-edge semiconductor products for a wide range of clients. 

The company specializes in producing advanced integrated circuits (ICs), including microprocessors, graphic chips, and various other semiconductor components used in smartphones, computers, automotive electronics, and other high-tech devices. 

TSMC’s dedication to technological innovation, state-of-the-art manufacturing processes, and a strong commitment to environmental sustainability has solidified its reputation as a leading force in the semiconductor manufacturing sector, serving as a critical partner for many major tech companies worldwide.

Not surprisingly, when Taiwan Semiconductor talks, the markets listen. The semiconductor sector jumped 2% immediately following TSMC’s announcement.

Shares of TSM surged from $100 to $113 in just one day.

Semiconductor stocks also gapping up this past week included Nvidia (NVDA)Applied Materials (AMAT)Advanced Micro Devices (AMD), and many others.

Our Top Ten Semiconductor Stocks

  1. NVIDIA Corporation (NVDA): Renowned for its graphics processing units (GPUs) used in gaming, AI, and data centers.
  2. Intel Corporation (INTC): A leading semiconductor manufacturer known for its microprocessors and data center solutions.
  3. Advanced Micro Devices, Inc. (AMD): Competing with Intel, AMD is known for its CPUs and GPUs, and it has gained significant market share.
  4. Taiwan Semiconductor Manufacturing Company Limited (TSM): The world’s largest semiconductor foundry, manufacturing chips for various companies.
  5. Broadcom Inc. (AVGO): A company offering a diverse range of semiconductor and infrastructure software solutions.
  6. Texas Instruments Incorporated (TXN): Known for its analog and embedded processing products used in various applications.
  7. Applied Materials, Inc. (AMAT): A key supplier of manufacturing equipment and solutions for the semiconductor industry.
  8. Micron Technology, Inc. (MU): Specializes in memory and storage solutions, including DRAM and NAND flash.
  9. Qualcomm Incorporated (QCOM): A leader in wireless technologies and mobile chipsets.
  10. NXP Semiconductors N.V. (NXPI): Known for its semiconductor solutions for automotive, industrial, and IoT applications.

You could decide to invest in any of these stocks individually, or you could opt to buy the entire sector with the Van Eck Semiconductor ETF (SMH).


As we look ahead to 2024, the semiconductor sector stands on the cusp of unprecedented growth and innovation. Artificial intelligence continues to drive demand for advanced chips, powering everything from autonomous vehicles to machine learning algorithms. 

Concurrently, the relentless march of technology advancements is pushing the boundaries of what is possible, requiring semiconductor companies to continuously evolve and innovate. 

Finally, President Biden’s CHIPS Act, aimed at bolstering domestic semiconductor manufacturing, promises to enhance the industry’s resilience and competitiveness, while also helping to improve supply chain bottlenecks.. 

With these powerful forces converging, 2024 holds the promise of being a watershed year for the semiconductor sector, as it not only meets the challenges of a digital age but also helps define the future of technology on a global scale. 

Investors and enthusiasts alike will be closely watching as the sector continues to thrive and lead in an increasingly interconnected world.

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