Riding the Wave: Top Semiconductor Stocks to Watch in 2024

The semiconductor industry is at the heart of modern technology, powering everything from smartphones to electric vehicles. With the increasing demand for advanced electronics and the ongoing digital transformation, semiconductor stocks have become a focal point for investors seeking growth opportunities. As we move into 2024, several semiconductor companies are poised to benefit from these trends. Here, we explore the top semiconductor stocks to watch in 2024 and how you can leverage your demat account to invest in them.

The rise of semiconductor stocks

Semiconductor stocks have seen significant growth over the past few years, driven by the rapid advancement of technology and the increasing need for chips in various sectors. From artificial intelligence and 5G networks to renewable energy solutions, semiconductors play a critical role in enabling these technologies. As a result, the market for semiconductors is expected to continue expanding, presenting lucrative opportunities for investors.

To capitalise on these opportunities, you need to have a demat account, which is essential for holding and trading shares electronically. A demat account not only simplifies the process of buying and selling stocks but also provides a secure and convenient way to manage your investments.

Top semiconductor stocks to watch

As the semiconductor industry continues to evolve, several companies are positioning themselves as key players with significant growth potential. Here are some of the top semiconductor stocks to watch in 2024:

Tata Elxsi
Tata Elxsi is not only a significant player in various industries such as automotive, healthcare, media, and communications, but it also holds a strong presence in India’s semiconductor industry. The company is known for its innovative work in electric vehicles and semiconductor design. Leveraging its strategic collaborations and cross-domain expertise, Tata Elxsi aims to drive large-scale technological transformations.

ASM Technologies
ASM Technologies provides a comprehensive range of engineering services to several international markets, including Japan, the Middle East, the UK, the US, and Singapore. The company specialises in areas such as automation, robotics, the Internet of Things (IoT), and driver assistance systems. Additionally, ASM Technologies excels in product research and engineering, consulting, and development solutions, making it a notable contender in the semiconductor sector.

SPEL Semiconductor
With a history spanning four decades, SPEL Semiconductor has established itself as a reliable partner for numerous semiconductor contract manufacturers. It is distinguished as the only company in India that operates both a semiconductor IC assembly facility and a testing hub, enhancing its appeal to investors.
Moschip Technologies
Moschip Technologies delivers advanced solutions across various sectors, including automotive, aerospace, defence, healthcare, consumer electronics, and telecommunications. As a system design and semiconductor provider, it offers services such as turnkey ASICs, mixed-signal IP, IoT, semiconductors, and product development. This diverse portfolio underlines its significant role in the semiconductor industry.

Dixon Technology
Dixon Technology, known for manufacturing consumer electronics like LED televisions, mobile phones, washers, and CCTVs, has effectively capitalised on the semiconductor opportunities in India. The company recently secured a contract with the technology giant Lenovo, positioning itself for substantial long-term growth in the semiconductor domain.

Ruttonsha International Rectifier
Ruttonsha International Rectifier, one of the oldest power semiconductor manufacturers in India, is affiliated with the US-based International Rectifier. With a 55-year history, it stands out as the only private sector firm in India that manufactures semiconductor devices from the diffusion stage. This legacy and technical capability make it a noteworthy stock in the semiconductor industry.

These companies are driving innovation and growth within the semiconductor industry, making them top stocks to watch as the sector continues to develop.

How to invest in semiconductor stocks?

Investing in semiconductor stocks can be a profitable venture, especially if you leverage the convenience and security of a demat account. Here are some steps to get started:

1. Open a demat account

To invest in semiconductor stocks, you first need to open a demat account with a registered depository participant (DP) in India. This account will hold your shares in electronic form, making it easier to trade and manage your investments. Choose a DP that offers competitive fees, reliable customer service, and a user-friendly trading platform.

2. Research the stocks

Before investing, conduct thorough research on the semiconductor stocks you are interested in. Analyse their financial performance, growth prospects, market position, and competitive landscape. Pay attention to industry trends and technological advancements that could impact the companies’ performance.

3. Diversify your portfolio

Diversification is key to managing risk in your investment portfolio. Instead of investing all your money in one stock, consider spreading your investments across multiple semiconductor companies. This approach helps mitigate the impact of any single stock’s poor performance on your overall portfolio.

4. Monitor your investments

Regularly monitor the performance of your semiconductor stocks and stay updated on industry news. Use your demat account’s trading platform to set alerts and track price movements. Adjust your investment strategy as needed based on market conditions and company performance.

The future of the semiconductor industry

The semiconductor industry is poised for continued growth, driven by several key trends. One of the most significant drivers is the increasing demand for advanced electronics, including smartphones, tablets, and laptops. As consumers seek more powerful and efficient devices, semiconductor companies will need to innovate and produce higher-performance chips.

Another major trend is the rise of artificial intelligence and machine learning. These technologies rely heavily on advanced semiconductors to process large amounts of data quickly and accurately. Companies like Nvidia and Intel are at the forefront of developing AI-focused chips, positioning them for substantial growth.

The rollout of 5G networks worldwide is also a critical factor driving the semiconductor industry. 5G technology requires specialised chips to enable faster data transmission and improved connectivity. Companies like Qualcomm and TSMC are well-positioned to capitalise on the growing demand for 5G chips.

Moreover, the push for renewable energy and electric vehicles is creating new opportunities for semiconductor companies. Chips are essential for managing energy consumption and improving the efficiency of renewable energy systems. As the world transitions to cleaner energy sources, semiconductor companies will play a crucial role in this transformation.

Conclusion: Seizing the opportunity

Investing in semiconductor stocks offers a promising avenue for growth, especially as technology continues to advance at a rapid pace. By opening a demat account and conducting thorough research, you can effectively navigate the semiconductor market and capitalise on the opportunities it presents.

The top semiconductor stocks to watch in 2024, such as TSMC, Nvidia, Intel, and Qualcomm, are well-positioned to benefit from key industry trends. As the demand for advanced electronics, AI, 5G, and renewable energy solutions grows, these companies are set to play a pivotal role in shaping the future of technology.

By staying informed and leveraging the tools and resources available through your demat account, you can make strategic investments in semiconductor stocks and ride the wave of growth in this dynamic industry.