Because semiconductors are the backbone of gadgets needed to utilize advanced technologies, such as Artificial Intelligence (AI) and Internet of Things (IoT), the industry is seeing surging demand. Furthermore, substantial government and private investments to address a global semiconductor supply shortage should drive the industry’s growth. So, we think it could be wise to bet on low-priced semiconductor stocks ASE Technology (ASX) and Everspin Technologies (NASDAQ:MRAM). They are both well-positioned to capitalize on the industry tailwinds. Read on.The increasing dependency on advanced technologies, such as artificial intelligence (AI), Internet of Things (IoT), and 5G wireless solutions, has caused sustained demand for semiconductors. According to the Semiconductor Industry Association (SIA), the worldwide sales of semiconductors increased 29.2% year-over-year to $44.5 billion in June 2021. Also, substantial government and private investments to tackle the global chip shortage should help the industry meet the surging demand, which is primarily coming from the consumer electronics and electric vehicles industries.
The global semiconductor market is expected to reach $803.15 billion by 2028, registering an 8.6% CAGR.
Therefore, we think fundamentally sound semiconductor stocks ASE Technology Holding Co., Ltd. (NYSE:ASX) and Everspin Technologies, Inc. (MRAM) could be solid bets now. These two stocks are currently trading below $10 but hold significant upside potential.