10 Small Publicly Traded Semiconductor Companies To Buy

3. Magnachip Semiconductor Corporation (NYSE:MX)

Number of Hedge Fund Investors In Q1 2024: 22

Magnachip Semiconductor Corporation (NYSE:MX) is a small South Korean semiconductor company that makes and sells products used in displays, smartphones, and other consumer electronics products. This means that the firm’s performance is dependent on the global economy, and particularly in the heavily populated Asian continent. As a result, it’s unsurprising that Magnachip Semiconductor Corporation (NYSE:MX)’s revenue has failed to grow in 11 consecutive quarters. However, the firm is using this slowdown in the broader semiconductor industry to invest in new products. Magnachip Semiconductor Corporation (NYSE:MX) has launched new power management products, a new company in China, and a new MOSFET product in 2024 as it hopes to gear itself for future growth once the economic outlook improves.

Magnachip Semiconductor Corporation (NYSE:MX)’s management believes that the firm might have finally hit the proverbial bottom when it comes to performance. During the latest earnings call, the firm shared:

Looking ahead, the macro environment remains uncertain, however, we believe we hit the bottom in Q1 and we expect gradual improvement going forward as channel inventories are consumed. We expect sequential growth especially in industrial, automotive, and computing segments. Finally, we recognize our recent market performance and results have been disappointing. However, we want to assure our investors that we remain unwavering in our commitment to drive growth and maximize shareholder value as demonstrated by our decision to bring in fresh perspectives with the addition of Mr. Nathan to our Board. Further, we continue to execute our stock buyback program daily and I am confident that the net purchases across the challenging market will provide accretive returns to our shareholders on the other side of this downturn.