11 Best Semiconductor Equipment Stocks to Buy According to Analysts

5. Nova Ltd. (NASDAQ:NVMI)

Average Upside Potential: ~69.9%

Number of Hedge Fund Holders: 26

Nova Ltd. (NASDAQ:NVMI) designs, develops, produces, and sells process control systems utilised in the manufacturing of semiconductors. The company has seen broad adoption of its comprehensive portfolios. As per the firm, leading foundries, logic, and memory manufacturers continue to integrate multiple NOVA solutions from its optical dimensions, materials, and chemical metrology portfolio. Therefore, the adoption cements its ability to address the complex metrology challenges associated when manufacturing the most advanced semiconductor nodes. Nova Ltd. (NASDAQ:NVMI) has completed the acquisition of Sentronics Metrology GmbH, which is a global provider of wafer metrology tools for backend semiconductor fabrication.

Nova Ltd. (NASDAQ:NVMI) expects the acquisition to be accretive on a non-GAAP net earnings basis in the 12 months of closing. The Sentronics portfolio expands the company’s presence in the broader range of applications and wafer sizes and types beyond 300mm silicon wafers. Overall, the growth in the semiconductor equipment market supports Nova Ltd. (NASDAQ:NVMI) by improving demand for its advanced metrology solutions. These are important for controlling critical dimensions as well as materials in next-gen chip manufacturing.

Invesco Distributors, Inc., an investment management firm, released Q2 2024 investor letter. Here is what the fund said:

“Nova Ltd. (NASDAQ:NVMI) provides integrated monitoring and process control systems for other integrated circuit manufacturing processes. Wafer fab spending has been on the rise due to high memory prices and AI spending, resulting in strong earnings results for Nova.”