TEXAS INSTRUMENTS (TXN) $147.81

Gain to date: 29.2%
Original entry point: Buy at $114.42p, 21 May 2020

ASML €367.48

Gain to date: 39.1%
Original entry point: Buy at €264.6, 23 April 2020

The semiconductor space continues to reward carefully vetted stocks despite the weight of concern around coronavirus this year.

ASML, the Dutch supplier of crucial equipment to semiconductor giants like Samsung Electronics, TSMC and Nvidia, marginally beat analyst expectations for the third quarter, upped its proposed dividend payout and relaunched its share buyback programme.

ASML grew revenue 32.5% year-on-year, with net income up 69.4% as margins expanded. Both figures handily beat analyst expectations. While the stock has eased back from over €400 on what was decent if unexciting guidance, management are known for their caution when looking forward.

Microchips manufacturer Texas Instruments has been similarly soggy since its own third quarter update on 20 October which also outstripped expectations. The Dallas-based company earned $1.45 a share on sales of $3.82 billion in the September quarter, versus analyst forecasts of $1.27 a share on sales of $3.43 billion, although the earnings figure dipped 3% year-on-year.

We pitched both as robust long-term technology plays in the face of adversity and this view has, so far, been vindicated.

SHARES SAYS: Still both buys for the longer term.

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