We recently compiled a list of the 10 Best Semiconductor Penny Stocks To Buy. In this article, we are going to take a look at where POET Technologies Inc. (NASDAQ:POET) stands against the other semiconductor penny stocks.
Semiconductors have propelled advancements in communications, computers, health care, military systems, transportation, clean energy, and a wide range of other uses. The United States is still at the forefront of cutting-edge manufacturing, design, and research because it invented semiconductor technology. The Semiconductor Industry Association reported $526.8 billion in sales in 2023. Over 70% of the sales made by American semiconductor companies go to foreign clients. In 2023, the US exported $52.7 billion worth of semiconductors, continuing to have a steady trade surplus in this commodity.
According to UN Comtrade DataBase, US imports of semiconductor devices were $26.83 billion, making it the world's largest importer. On the other hand, China was the world's top exporter of semiconductor devices in 2023, having shipped $61.32 billion worth of these goods.
The semiconductor industry is growing due to key trends like remote work, electric cars, and, AI, and McKinsey predicts that by 2030, the semiconductor market will reach $1 trillion, with the computing, wireless, and automotive sectors accounting for almost 70% of this growth.
Today, chipmakers are leaning towards 2 nm chips, however, developments from big tech companies indicate that by 2025-2027, it won't go much beyond that. Hence, with the slowing of Moore's Law, the semiconductor industry is shifting its focus to accelerated computing, especially in regards to AI. Moreover, there are promises on the software front as well, with AlphaTensor, developed by DeepMind, being touted as a finder for novel matrix-multiplication ways that could lead to the discovery of faster algorithms to speed up computing.
According to Fortune Business Insights, the global semiconductor market was valued at $611.35 billion in 2023 and is expected to grow at a CAGR of 14.9% from $681.05 billion in 2024 to $2062.59 billion by 2032. Regionally, Asia Pacific dominated the global industry, reaching $308.95 billion in 2023, exhibiting the highest growth in the market across the globe. The North American market is growing dynamically, mainly due to rising investments in research and development. The Semiconductor Industry Association (SIA) reveals that US semiconductor manufacturing companies have maintained a high level of R&D spending, allocating almost one-fifth of their total yearly revenue to this area. Innovations in chips were the main driver of this consolidation, which reached a record of $50.2 billion in 2021.