Good semiconductor stock to invest

Screening Filters

1. Market Cap ≥ $10,000,000,000 (Large-Cap Focus)

   • Purpose: Limit the search to established, larger semiconductor companies.
   • Rationale: When someone asks for a “good semiconductor stock to invest,” they often mean relatively stable, well-known names with proven business models. Large caps:
     • Tend to have more diversified revenue streams.
     • Are generally less volatile than small/mid caps.
     • Have better disclosure, analyst coverage, and institutional ownership—all helpful for long‑term investing.

2. Industry = Semiconductors & Semiconductor Equipment

   • Purpose: Target only semiconductor-related businesses.
   • Rationale: This directly aligns with your request. It captures:
     • Chip designers and manufacturers.
     • Equipment makers that supply tools to chip fabs.
     • Related semiconductor ecosystem companies. This ensures all results are truly semiconductor plays, not just tech-adjacent.

3. Region = United States

   • Purpose: Limit results to U.S.-based companies.
   • Rationale: U.S. semiconductor firms:
     • Are among the global leaders in design, IP, and high-end chips.
     • Have strong regulatory oversight and disclosure standards.
     • Trade in a market many investors are familiar and comfortable with (USD reporting, SEC filings, etc.).

4. Exchange = XNYS, XNAS, XASE (NYSE, NASDAQ, AMEX)

   • Purpose: Include only major U.S. exchanges.
   • Rationale: Listing on these exchanges generally implies:
     • Higher listing and reporting standards.
     • Better liquidity (easier to enter/exit positions).
     • Narrower bid-ask spreads and more reliable pricing. This supports the idea of “good” investable stocks rather than illiquid or OTC names.

5. Return on Equity (ROE) ≥ 10%

   • Purpose: Filter for companies that are generating solid returns on shareholder capital.
   • Rationale: ROE measures how efficiently a company turns equity into profit. A minimum of 10%:
     • Screens out many low-quality or struggling businesses.
     • Favors firms with stronger profitability and competitive positioning. In semiconductors—where capex is heavy—decent ROE is a sign of good management and business strength.

6. 5-Year Revenue CAGR ≥ 10%

   • Purpose: Focus on companies with consistent, above-average growth.
   • Rationale: A “good” semiconductor investment usually combines quality with growth. A 10%+ compound annual growth rate over 5 years:
     • Highlights companies benefiting from strong end-market demand (AI, data centers, autos, 5G, etc.).
     • Reduces the chance you’re looking at stagnating or shrinking businesses. This aligns with seeking stocks that can participate in long-term semiconductor industry growth.

7. Analyst Consensus = Strong Buy or Moderate Buy

   • Purpose: Include only stocks with broadly positive professional analyst sentiment.
   • Rationale: While analysts can be wrong, consensus ratings can help:
     • Weed out names with major, widely known problems.
     • Highlight companies where fundamentals and outlook are generally seen as favorable. Since you asked for a “good” stock, this adds an extra sanity check from market professionals.

Why Results Match Your Request

• All candidates are pure or near‑pure semiconductor plays, matching your sector focus.
• They are large, established U.S. companies on major exchanges, consistent with the idea of more investable and stable names rather than speculative microcaps.
• Profitability (ROE) and multi‑year revenue growth filters target businesses that are not just in the right industry but also executing well.
• The positive analyst consensus layer adds an external validation that these names are generally viewed as attractive by professionals, aligning with your interest in “good” semiconductor stocks rather than simply any semiconductor stock.