Editorial StaffChip stocks have seen significant returns in the final quarter of 2021. Despite volatility in the broader markets, the semiconductor industry continues to expand at a rapid pace.
For instance, Nvidia (NASDAQ:NVDA) gained over 25% over the past month, while Advanced Micro Devices (NASDAQ:AMD) surged 20% and Qualcomm (NASDAQ:QCOM) added 30%.
Wall Street highlights chip stocks constitute a perfect way to boost investor portfolios with many companies riding on a global chip shortage. And recent metrics show us why: the semiconductor market should expand over 17% in 2021 compared to 10.8% in the previous year.
Strong tailwinds support chip stocks as semiconductors are necessary in a broad spectrum of established and emerging technologies. We find chips in wireless products, 5G technologies, household consumer items, artificial intelligence (AI), the Internet of Things (IoT), the metaverse and electric vehicles (EVs). With most industry companies reporting record revenues so far in 2021, top chip stocks undoubtedly deserve investor attention.
JPMorgan (NYSE:JPM) points out that the current global chip shortage could improve in mid-2022 as more supplies become available.
Meanwhile, tech giants like Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:FB) and Tesla (NASDAQ:TSLA) are all working to bring certain features of chip production in-house. Moreover, JPMorgan forecasts that the fragmentation in the high-end computing space could lead to faster growth in the industry.
With that backdrop, here are top chip stocks with explosive upside potential in 2022 and beyond.
- Advanced Micro Devices Broadcom (NASDAQ:AVGO)
- iShares Semiconductors ETF (NASDAQ:SOXX)
- NvidiaON Semiconductor (NASDAQ:ON)
- QualcommSkyworks Solutions (NASDAQ:SWKS)
Source: MSN Money
