Tech giants such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOGL) command significant influence in the market, driving fierce competition and sparking relentless innovation. However, their dominance presents challenges for emerging companies striving to differentiate themselves. This has led to the rise of the best tech stocks to buy.
One area presenting immense potential for growth and investor interest is Generative AI. This rapidly advancing field holds promising prospects as its technology continues to mature, becoming increasingly applicable in a broad range of industries. Notably, Nvidia (NASDAQ:NVDA), a leading player in the field, has been developing AI-accelerated chips that maximize the potential of applications like ChatGPT.
Meanwhile, the semiconductor industry, integral to nearly every tech-enabled product, from cars to washing machines, continues to thrive as one of the largest sectors in the tech industry. In the following discussion, we will delve into two semiconductor companies: one an established giant, the other a smaller international entity boasting an impressive dividend yield.
Lastly, we’ll explore a burgeoning Bitcoin (BTC:USD) mining company that’s expanding its production potential through environmentally conscious methods, illustrating the evolving landscape of cryptocurrency mining.
United Microelectronics (UMC)
United Microelectronics (NYSE:UMC) operates as a dedicated semiconductor wafer foundry company based in Taiwan. United Microelectronics produces silicon wafers that provide integrated circuits for semiconductors and other electronic products. They have 12 different facilities located throughout Asia that produce approximately 850,000 wafers per month. This makes it one of those best tech stocks to buy.
The company reported first-quarter earnings back in April. Their net income fell by 18%, and total revenue dropped by 15% compared to the first quarter of 2022. Shrinking demand for silicon wafers due to inflated inventory levels led to a drop in overall profit. And the company also stated that it expects the continued demand shortage for semiconductors products to will affect second-quarter earnings. United Microelectronics has been implementing cost-cutting measures to help offset revenue stagnation.
They also offer a dividend yield of approximately 8% on an annual basis, with $0.14 per share being paid to shareholders quarterly.
CleanSpark (NASDAQ:CLSK) is a Bitcoin mining company that provides sustainable infrastructure for mining operations through low-emission energy sources such as solar, wind, hydro, and nuclear.
They are based in Henderson, Nevada. And the stock price year-to-date is up by over 205%, mainly to the increase in the price of Bitcoin, which has surged by more than 75% since the beginning of the year.
Cleanspark just recently acquired two Bitcoin mining campuses located in Dalton, Georgia, in an all-cash deal worth $9.3 million. It was stated in their most recent Bitcoin mining update that the company mined 491 Bitcoin worth approximately $13 million. The company reached phase two for its mining campus in Georgia, in which it is increasing its computing power, also known as hash rate, to 8.5 exahashes per second which is over halfway towards there target for the end of the year.
Texas Instruments (TXN)
Texas Instrumental (NASDAQ:TXN) is a global semiconductor company based out of Dallas, Texas. They provide chips for many industries, such as automotive, industrial, and personal electronics.
In February, the company announced plans to build an addition to its 300 mm wafer fabrication facility in Lehi, Utah. This represents an $11 billion investment, the most significant economic investment in all of Utah’s history. And it’s expected to add over 800 new jobs and thousands of indirect jobs to the area.
In April, Haviv Ilan became the new President and CEO of Texas Instruments, and the previous CEO, Rich Templeton, will remain as Chairman. This is another reason why TXN is one of those best tech stocks.
The company released second-quarter earnings on July 25. Net income fell by 25%, and total revenue declined by 13%. Similar to United Microelectronics and other semiconductors companies, Texas Instruments experienced weakness in the market, leading to a decrease in profits.
On the date of publication, Noah Bolton did have a long position in UMC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.