3 Value Semiconductor Stocks to Consider Before the 2024 Crypto Boom

Budget semiconductor stocks are on the brink of a major upswing thanks to the highly anticipated Bitcoin (BTC-USD) halving event slated for April. The halving is a periodic occurrence that increases the scarcity of Bitcoin by halving the cryptocurrency awarded to miners. Several investors are forecasting substantial market-wide rallies akin to the 2021 bull run.

“If ETF-related inflows materialize as we expect, we think an end-2025 level closer to USD 200,000 is possible,” shared Geoff Kendrick, head of digital assets at Standard Chartered.

How do semiconductor stocks come into play during a crypto bull run? The demand for semiconductors surges during these periods due to the heightened need for high computing power. The semiconductor market is already experiencing a remarkable rally following the 2023 generative artificial intelligence (AI) surge. By fueling the revival of cryptocurrency mining this year, we anticipate sustained growth and the emergence of new market participants throughout the year.

For some budget semiconductor stocks with potential for growth, the following three options are worth considering.

Taiwan Semiconductor Manufacturing (TSM)

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Taiwan Semiconductor Manufacturing (NYSE:TSM), or TSMC, reigns as the world’s largest semiconductor operator with a 56% market share.

Despite holding a strong market position, TSMC was overshadowed by Nvidia (NASDAQ:NVDA) in 2023. Consequently, there is ample room for the stock to benefit from increased investor demand during the crypto bull run. TSMC has been actively mitigating potential risks arising from geopolitical tensions between China and Taiwan by establishing new facilities across the globe.

The company’s 2024 revenue forecasts predict a 25% growth, offering ample excitement for investors. As more crypto miners seek semiconductor solutions to bolster their operations, TSMC’s status as a market leader is poised to place the company in a favorable position.

Intel (INTC)

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Giant in computing, Intel (NASDAQ:INTC) encountered a turbulent start in 2024. Following sales and profitability projections that fell significantly below Wall Street’s expectations, the stock plummeted by 12% at the end of January — marking its most substantial decline in over three years.

Despite this setback, the stock rapidly recovered its losses with Bank of America analysts proposing that Intel Foundry Services (IFS) could position itself as a primary alternative to TSMC. While TSMC holds a strong market leading position, geopolitical tensions between China and Taiwan might drive more customers towards IFS.

The custom chip market exceeded $30 billion in 2023. The surge in generative AI, combined with renewed interest in cryptocurrency mining, could pave the way for Intel’s expanding foray into the 2024 semiconductor landscape.

Axcelis (ACLS)

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Unlike the other semiconductor stocks discussed in this article, Axcelis (NASDAQ:ACLS) does not itself produce chips. Instead, the company manufactures ion implantation equipment that plays a critical role in chip creation. Axcelis manufactures semiconductor hardware such as storage (NAND) chips, memory (DRAM) chips, and advanced logic (CPU) chips.

In 2023, Axcelis reportedly encountered exceptional demand in the silicon-carbide power device market. The company amassed a significant $1.2 billion order backlog, equivalent to a year’s worth of revenue.

With a market cap of under $5 billion, Axcelis stands as a relatively small company poised for growth. As the demand for ion implantation surges amidst the crypto boom, Axcelis could achieve impressive figures.

On the date of publication, Dmytro Spilka did not hold any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.