Best Long-Term Semiconductor Stocks According To Redditors: Favorites Beyond Nvidia

Investors exploring long-term growth in the semiconductor industry often face the dilemma of choosing a specific stock or opting for a broader approach like a semiconductor ETF.

Best semiconductor stock to buy and hold long term?

A Reddit post by u/tarheel786352 sparked a discussion on this topic, seeking advice on the best semiconductor stock for long-term investment. Here are some insights from the community:

A Holistic Semiconductor ETF Approach

HeftyReaction4 suggests considering the VanEck Vectors Semiconductor ETF SMH. The rationale behind this approach is the uncertainty in predicting the long-term leader within 12–16 months. SMH offers diversified exposure to the semiconductor industry, mitigating the risk associated with selecting a single stock.

Cornerstones of Semiconductor Manufacturing

DM_ME_UR_PANZER recommends focusing on ASML Holding N.V. ASML and Applied Materials Inc AMAT, emphasizing their critical roles in semiconductor manufacturing. ASML, a leader in advanced node photolithography equipment, and AMAT, boasting the largest and most diverse equipment portfolio, are deemed indispensable for the semiconductor industry.

Challenger in the Graphics Arena

Creme6020 points out Advanced Micro Devices Inc AMD as a noteworthy player capable of taking on Nvidia. Acknowledging Nvidia’s dominance, the comment suggests that AMD’s consistent challenges of industry giants make it a compelling option. The historical context of AMD competing with both Intel Corp INTC and Nvidia Corp NVDA adds to the optimism surrounding its future trends.

Also Read: AMD Stock Set To Build On Gains, Outperforms Nvidia In Premarket: What’s Going On

Long-Term Returns Worth Considering

Shabanko12 highlights Broadcom Inc AVGO as a stock to check out for long-term returns. While not delving into specific reasons, the recommendation implies positive sentiments regarding AVGO’s potential for sustained growth in the semiconductor sector.

Strategic Global Expansion and Japanese Semiconductor Market Dynamics

Taiwanese_Jesus discusses Taiwan Semiconductor Manufacturing Company TSM and its strategic expansion plans. With large fabs being built globally, including in Japan, Germany, and Arizona, TSMC’s commitment to geographical diversification is seen as a strength. The comment also touches upon the geopolitical aspect, suggesting resilience even in the face of potential challenges.

Romi-Omi adds insights to TSMC’s decision, emphasizing the collaboration with Japan due to its significant market share in semiconductor equipment and materials. TSMC’s expansion in Japan is seen as a mutually beneficial move, contributing to the recent success of Japanese semiconductor-related stocks.

The Reddit community offers diverse perspectives on the best semiconductor stock for long-term investment. Whether opting for an ETF like SMH for broad exposure or considering individual stocks like ASML, AMAT, AMD, AVGO, or TSMC, each recommendation comes with its unique rationale, emphasizing different aspects of the semiconductor industry’s potential growth.

As with any investment decision, thorough research and consideration of personal financial goals are crucial.

Read Next: SOXL Soars Toward New Highs: NVIDIA And AMD Fuel Semiconductor Sector Rally

Photo: Shutterstock