5 Cheap Semiconductor Stocks to Buy Now

2. Infineon Technologies AG (OTC:IFNNY)

Share price as of Monday, September 20, 2021: $41.82
Number of Hedge Fund Holders: 1

Infineon Technologies AG (IFNNY) is a German semiconductor manufacturing company that was originally part of the Siemens AG business group. While the term semiconductors generally bring computer and smartphone chips to mind, the market is more diverse than this as it includes other smaller segments such as power management integrated circuits and automotive processors. The company targets the automotive chip sector, the industrial sector which includes power generation companies, sensors that are located inside a plethora of devices such as computers, notebooks, gaming consoles, and datacenters and chips present inside Subscriber Identification Modules (SIM) for phones, credit and debit cards, passports and other products which require secure processing.

Infineon Technologies AG (IFNNY) was also at the center of the recent automobile chip shortage which resulted in several automakers such as Ford shutting down their production lines. However, as foundries ramp up production, the automotive sector is also expected to experience significant growth. This growth is evident in an analysis by PricewaterCoopers, one of the world’s largest accounting firms, who forecasts that by 2022 end, the automotive subsector of the semiconductor industry will have grown by 11.9%.