Can This Small-Cap Semiconductor Stock Be the Next 10x in Your Portfolio?
What are the best semiconductor stocks for 2022 and beyond? The semiconductor shortage has been big news, but with so many different companies in the semiconductor sector, it can be challenging to identify the top stocks to buy now. One interesting company that has unique supply chain advantages is SiTime (NASDAQ: SITM).
Most electronics today require precision timing. The smartphone in your pocket, the data center you are retrieving this article from, the computer you are reading on, the thermostat in your home, and even earthquake detection systems all require precise and reliable timing devices. One supplier of this technology is SiTime, which creates microelectromechanical systems (MEMS) semiconductor chips. MEMS technology combines mechanical and electrical components. These chips can be very small, ranging in size from several millimeters to 1 micrometer, which is a thousandth of a millimeter and not visible to the human eye. This may sound like science fiction, but it is reality. Welcome to 2022! Many of SiTime's high-demand chips are half a millimeter square -- not microscopic, but still tiny compared to the competition, which leverages 70-year-old quartz technology. These small chips have provided SiTime a competitive advantage during the semiconductor shortage. Why, you ask? Because a foundry can produce 100,000 of these microchips on a single wafer. Much of the competition has larger chips, meaning more wafers. Additionally, much of the competition uses complementary metal-oxide-semiconductor (CMOS) wafers, which are harder to come by in the shortage.
As I have discussed previously, I believe semiconductors are the new oil. Think about it for a minute. Consider all the secular growth trends and disruptive innovations we are experiencing and will continue to experience over the next decade. Here are several to consider:
Source Fool.com
