Are these 2 semiconductor stocks worth adding to your portfolio this summer?

Despite pressure from high inflation and supply chain disruptions, growing demand and increased investment to ramp up production are expected to help the semiconductor industry perform well. Therefore, NVIDIA (NVDA) and Lattice Semiconductor (LSCC) chips could be good additions to your portfolio at their current price points. Let’s talk….

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Strong demand, political support and corporate investment to ramp up production helped the semiconductor industry register an 18% increase of its worldwide sales in May 2022. In the Americas, sales were up 36.9% year-over-year.

Although the Russian-Ukrainian conflict and Taiwan-related tensions between China and the United States continue to affect the supply chain, the growing demand and development of advanced chips with increased latency and consumption of power should keep industry afloat.< /p>

Investor interest in the space is evident from the SPDR S&P Semiconductor ETF (XSD)'s 7.4% gains over the past week versus the SPDR S&P 500 Trust ETF's 2% returns (SPY). The global semiconductor market is expected to grow at a CAGR of 9.2% to reach $893.10 billion by 2029.

Wall Street analysts expect NVIDIA Corporation (NVDA) and Lattice Semiconductor Corporation (LSCC) quality chip stocks to rise significantly over the next few months. Therefore, these stocks could be solid additions to your watchlist.

NVIDIA Corporation (NVDA)

NVDA designs and manufactures computer graphics processors, chipsets, and related multimedia software for the gaming, professional visualization, data center, and automotive markets.

It serves OEMs, ODMs, system builders, add-in card manufacturers, retailers/distributors, internet and cloud service providers, mapping companies and other ecosystem participants .

On June 29, 2022, NVDA and Siemens AG (SIEGY), a German industrial automation and manufacturing company, expanded their partnership to enable the industrial metaverse and increase the use of technology-based digital twin technology. 'AI to bring industrial automation to a new level.

The addition of NVDA's NVIDIA Omniverse to the open ecosystem of Siemens Xcelerator partners will accelerate the use of digital twins capable of improving productivity and improvements throughout production and product life cycles. This will help companies introduce the industrial metaverse and lead in the markets.

For the first quarter of fiscal 2023 ended May 1, 2022, NVDA's revenue increased 46.4% year-over-year to $8.29 billion. The company's non-GAAP gross profit was $5.56 billion, an increase of 48.5% over the prior year period. Its non-GAAP operating income was $3.96 billion for the quarter, up 54.7% from the prior year period.

NVDA's non-GAAP net income was $3.44 billion, up 48.9% from a year earlier. Its non-GAAP EPS came in at $1.36, indicating a 49.5% year-over-year improvement. As of May 1, 2022, the company had $3.89 billion in cash and cash equivalents.

The consensus EPS estimate of $5.43 for the 2023 fiscal year ending January 31, 2023 indicates a 22.3% year-over-year improvement. It has exceeded Street EPS estimates in each of the past four quarters, which is impressive. NVDA's revenue is expected to be $33.60 billion for the same fiscal year, up 24.9% from the prior year period. Its EPS is expected to grow 22.8% annually over the next five years.

The company's free cash flow grew 107.2% over the past year, 808.9% above the industry average of 11.8%. Its 79.7% EBITDA growth over the past year is 270.8% higher than the industry average of 21.5%.

NVDA's trailing 12-month ROE of 42% is 486.3% higher than the industry average of 7.2%. It has an ROI of 20.9% over 12 months, which is 599.5% higher than the industry average of 3%. The stock has gained 9.1% over the past week to close the last trading session at...