As the tech space continues to expand and integrate into every aspect of our lives, the global semiconductor space has grown rapidly. By 2035, current growth estimates by market experts indicate that this industry might be worth US$1 trillion.
When thinking of semiconductor stocks, investors often think of Intel or Nvidia. Canada does not have many players in this space. That said, there are prospects Canadian investors can consider if they want to invest in TSX stocks to ride the wave.
It is no secret that the semiconductor industry is vital for the future. The federal government already has plans to pump millions into it to advance semiconductor product manufacturing and production. Today, we will look at two Canadian semiconductor stocks you should have on your radar to this end.
Celestica
Celestica (TSX:CLS) is an important TSX stock to consider if you are targeting rapid growth for your portfolio. The $3.42 billion market capitalization company headquartered in Toronto is a multinational design, manufacturing, hardware platform, and supply chain manufacturing services company.
With a geographically diversified presence and focus on several business verticals, this tech stock has also delivered an impressive performance lately.
As of this writing, the stock is up by a massive 84.20% year to date. While not a pure-play semiconductor company, Celestica has a presence in this space.
It is the leading supplier of Water Fab Equipment (WFE) to some of the top-notch semiconductor WFE manufacturers. Celestica has beaten Street analyst earnings estimates for 16 consecutive quarters. Considering its rapid growth, solid financial performance, and recent gains in the stock market, it can be a stock worth buying while the rally continues.
5N Plus
5N Plus (TSX:VNP) is a $319.34 million market capitalization Canadian specialty metal and chemical products manufacturer. It operates two primary segments: Eco-Friendly Materials and Electronic Materials. The Eco-Friendly Materials arm of the business manufactures and sells several chemicals. Its Electronics Materials segment manufactures and sells refined metals, alloys, and compounds.
The company services giants across several industries, including renewable energy, space, security, and the pharmaceutical sector.
As of this writing, 5N Plus stock is up by 22.03% year to date. The company’s management is particularly optimistic about its Specialty Semiconductors segment. With demand for semiconductors growing rapidly, industry tailwinds can fuel significant growth for 5N Plus, as evidenced by its recent rally.
The company will continue focusing on products with superior margins and high-growth potential. It can be an excellent investment to add to your self-directed portfolio before the next rally takes it out of reach.
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Foolish takeaway
There is a lot of time for players in the Canadian semiconductor industry to even come close to the global giants in this space. That said, it can be a fantastic opportunity to establish positions in tech stocks with the potential to deliver stellar wealth growth as the pace picks up. To this end, Celestica stock and 5N Plus stock can be excellent additions to your self-directed portfolio.
