The term “metaverse” is the latest buzzword on everyone’s lips. Investors seem excited about the potential it holds, and tech giants continue to invest heavily in developing the metaverse. Given this background, we believe it would be wise to add high-quality NVIDIA (NVDA), Intel (INTC), and Micron Technology (MU) stocks for semiconductor chips as they potentially play an important role in the metaverse infrastructure. Read on.
The metaverse is a virtual world powered by virtual and augmented reality headsets that will enable users to interact with content, interact with other users and experience almost anything in a virtual world.
The term “metaverse” has been in the news since Facebook Inc. To Meta Platforms, Inc. (FB). “Our overarching goal across all of these initiatives is to help bring life back overseas,” said Mark Zuckerberg, CEO of FB. Shoe manufacturer Nike, Inc. (From(became one of the first major companies to enter the metaverse by partnering with Roblox Corporation)RBLX) and the announcement of a virtual world called Nikeland on the online gaming platform RBLX.
Semiconductors are the backbone of IT devices and are expected to play an important role in the growing metaverse. Given this background, we think it might be wise to add stock of high-quality NVIDIA chipsets (NVDAIntel Corporation (INTC) and Micron Technology, Inc. (mo) for one’s wallet. These stocks appear well positioned to benefit from the growth of the metaverse.
Click here to check out the 2022 Semiconductor Industry Report
NVIDIA Corporation (NVDA)
Santa Clara, California NVDA is an artificial intelligence computing company. It works through the Graphics, Computing and Networking departments. Its graphics segment includes the GeForce graphics processing unit (GPU), Quadro/NVIDIA RTX GPUs, and automotive platforms for infotainment systems. The Computing and Networking division includes data center platforms and systems for artificial intelligence, high-performance computing, and accelerated computing.
On January 4, 2022, NVDA announced it had secured more deals with Chinese electric vehicle makers. Chinese EV makers will use NVDA’s DRIVE technology as part of new vehicle CPUs, such as Polestar, Xpeng, NIO, IM Motors, Li Auto and R Auto. Other vehicle suppliers, such as Desay, Flex, Quanta, Valeo and ZF, will use their DRIVE platform as the basis for the in-vehicle automated driving systems they design for electric vehicle brands.
NVDA’s revenue for the third quarter ended October 31, 2021 increased 50% year over year to $7.10 billion. The company’s data center revenue increased 55% year over year to $2.94 billion. Its non-GAAP net income rose 62% year-over-year to $2.97 billion, while its non-GAAP net income rose EPS It came to $1.17, which is a 60% year-over-year increase.
Analysts expect NVDA’s earnings and revenue for fiscal year 2022 to rise 73.6% and 60%, respectively, year-over-year to $4.34 and $26.68 billion. It has exceeded Street Street’s EPS estimates in each of the subsequent four quarters. Over the past year, the stock price rose 96.3% to close yesterday’s trading session at $265.75.
Intel Corporation (INTC)
INTC designs, manufactures and sells core technologies for cloud, intelligent, and connected devices for commercial, industrial, and consumer uses worldwide. the Santa Clara, California The company’s segments include its data center portfolio; Internet of Things group; Mobily. non-volatile memory solutions group; and programmable solutions package.
On December 16, INTC CEO Pat Gelsinger announced the construction of a new wafer packaging and testing plant in Malaysia, which is scheduled to come online in 2024. This new facility is likely to enable the company to meet the growing demand for semiconductor wafers in the world. the whole world. The application of semiconductor wafers is growing.
INTC’s non-GAAP revenue for the fiscal third quarter ended September 30, 2021 was up 5% year over year to $18.10 billion. The company’s non-GAAP net income rose 54% year over year to $7 billion. Also, non-GAAP EPS came in at $1.71, up 59% year over year.
The share price rose 9.8% over the past month to close yesterday’s trading session at $54.94.
INTC POWR . ratings Reflect solid prospects. According to our rating system, it has an overall A rating, which translates to a solid buy. POWR Ratings rates stocks by 118 distinguishing factors, each with its own weighting.
It has a score of A for value and a score of B for momentum and quality. rated A Semiconductor & Wireless Chip Industry, it is ranked #11 out of 100 stocks. click here See additional INTC ratings for growth, stability and sentiment.
Micron Technology, Inc. (mo)
MU in Boise, Idaho, provides solutions for memory and storage technology, including dynamic RAM, negative RAM, 3D XPoint memory, and NOR. Its brands include Micron and Crucial.
On December 20, 2021, MU provided an optimistic quarterly update driven by demand from its network, data center, and automotive customers. The company’s CEO, Sanjay Mehrotra, said, “Memory and storage will continue to grow faster than the rest of the chip industry, driven by these new markets. These things are not just related to the 2022 calendar, they are beyond that.”
For the first fiscal quarter ending December 2, 2021, MU revenue was $7.69 billion, up 33.2% year over year. The company’s non-GAAP net income rose 175.4% year over year to $2.47 billion. Non-GAAP earnings per share rose 177% year over year to $2.16.
For the quarter ending February 28, 2022, MU’s EPS is expected to increase 101% year over year to $1.97. Its revenue for fiscal year 2023 is expected to increase 20.3% year-on-year to $38.79 billion. It has exceeded consolidated earnings per share estimates in each of the subsequent four quarters. Over the past three months, the stock price rose 44% to close yesterday’s trading session at $95.62.
MU’s POWR ratings reflect this promising outlook. The stock has an overall A rating, which equates to a strong buy in our rating system.
It has an A score for value and a B score for growth, momentum, feel and quality. It is ranked No. 7 in Semiconductor & Wireless Chip industry. To find out the order of MU for stability, click here.
Click here to check out the 2022 Semiconductor Industry Report
NVDA shares were trading at $267.47 a share Friday afternoon, up $1.72 (+0.65%). Year-to-date, the NVDA is down -9.06% versus a -2.52% rise in the benchmark S&P 500 over the same period.
About the author: Dibangan Panchur
Since he was in elementary school, Dipangan has been interested in the stock market. This led to him earning a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipangan has a keen interest in reading and analyzing emerging trends in the financial markets.
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