The Semiconductor Shortage Is Massive and Growing: 4 Stocks to Buy Now

Marvell Technology

This top company also is a favored mid-cap pick at Jefferies. Marvell Technology Group Ltd. (NASDAQ: MRVL) is a fabless supplier of mixed-signal and analog semiconductor products to a number of storage, computing and communication applications, including hard disk drives, personal computers, servers, Ethernet switches, printers and connectivity markets.

The company has a unique positioning in markets that could rebound fastest in the second half of the year and into 2022. Top analysts are expecting enterprise and global 5G infrastructure deployments. In addition, multiple product cycles across the cloud, 5G and autos, which collectively are 25% of sales, as well as design internet protocol across processors, storage and computing.

In addition, Marvell has the ability to monetize Arm server internet protocol and drive potential synergies from the company’s Inphi acquisition, which has been approved by Chinese regulators and should close in the second or third quarter.

Shareholders receive a 0.55% dividend. Jefferies has a price target of $55, and the consensus target is $54.84. Marvell Technology stock closed at $48.05 a share on Wednesday.

Microchip Technology

This company is a huge Internet of Things benefactor and the stock has been very strong recently. Microchip Technology Inc. (NASDAQ: MCHP) is a leading provider of microcontroller, mixed-signal, analog and flash-IP solutions, providing low-risk product development, lower total system cost and faster time to market for thousands of diverse customer applications worldwide.

The company acquired Microsemi in June of 2018, and most analysts believe that purchase and earlier acquisitions afford Microchip Technology ongoing mergers and acquisitions linked upside potential from cross-selling (to boost sales) and manufacturing synergies (to reduce costs).