Applied Materials (NASDAQ:AMAT), Broadcom (NASDAQ:AVGO), and Texas Instruments (NASDAQ:TXN) are 3 semiconductor stocks that are worth buying as the semiconductor supply crunch continues.For over a year, semiconductors have been one of the leading industries pushing this bull market higher. This is evident from the sector’s outperformance in addition to impressive earnings growth by many companies in the industry. Since the March 2020 low, the VanEck Vectors Semiconductors ETF (SMH) is up 163%, while the S&P 500 is up 94% over the same timeframe.
Even more interesting is that many of the leading companies in the industry have seen their price-to-earnings ratios decline over the past year, as earnings growth has outpaced stock price appreciation. Notably, this is not the case for the S&P 500 which has seen significant multiple expansion.
Like a lot of tech and growth stocks, semiconductors have underperformed since mid-February. Unlike many of those stocks, semiconductor stocks have continued to post strong earnings reports and look poised to start outperforming once again. 3 semiconductor stocks that investors should consider buying are Applied Materials (AMAT), Broadcom (AVGO), and Texas Instruments (TXN).