Which Semiconductor Stock is a Better Buy? By StockNews

The rising demand for semiconductors across many industries, along with investments made by governments and corporations to address the global semiconductor chip shortage, should drive the industry’s growth. This should allow prominent semiconductor companies Micron (MU) and Western Digital (WDC) to grow in the near-term. But which of these stocks is a better buy now? Let’s find out.Micron Technology, Inc. (NASDAQ:) and Western Digital Corporation (NASDAQ:) are two prominent players in the storage products and solutions worldwide. MU manufactures and markets a portfolio of memory technologies for solid-state drives, modules, multi-chip packages and other system solutions. WDC provides datacenter devices and solutions, client devices and client solutions.

Continued demand for tech devices from industries, corporations and remote workforces has helped the semiconductor industry to witness month-over-month sales growth of 4.1% in May 2021. To address the semiconductor chip shortage, the US Senate passed a bill that will allocate $52 billion to boost the domestic production of semiconductors. This, along with increasing initiatives by the governments of several other countries and enterprises to address the global chip shortage, has boosted investor optimism about the industry’s growth prospects. This is evidenced by the SPDR S&P Semiconductor ETF’s (XSD) 4% gains versus the SPDR S&P 500 Trust ETF’s (SPY) 3% returns over the past month. Therefore, we think both MU and WDC are likely to benefit from their industry tailwinds.

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