3 Semi Stocks Shrugging Off Market Weakness In this article, we discuss 3 semi stocks shrugging off the recent market weakness.

They say that semiconductors are the heartbeat of the tech sector, which is why it's nice to see that semi stocks have been holding up well during the recent market pullback. The ongoing chip shortage should benefit the majority of these companies for the foreseeable future, while demand is expected to remain strong even after the supply chain issues have been resolved. These electrifying products are important in the tech world for a variety of reasons, which means it's hard to argue against having at least some exposure to semiconductors in a long-term portfolio.

Given that many semi stocks have been showing relative strength as the broader indices pull back, they could be some of the strongest performers once the selling in the market subsides. The bottom line is that as technology continues to evolve and become more sophisticated, investors can be confident that semiconductor companies will play a key role in driving innovation.

We've put together a list of 3 semi stocks that are shrugging off the recent market weakness to help you take advantage of some of the standout names in the industry. Let's take a further look below.

Marvell Technology (NASDAQ: MRVL)

First up is Marvell Technology, a fabless chipmaker that is primarily focused on delivering the data infrastructure technology that helps to keep the world connected. With products like processors, optical interconnections, application-specific integrated circuits, and merchant silicon for Ethernet applications, Marvell's chips make their way into some of the highest growth end markets today. For example, the company is benefitting from rapid growth in the cloud computing space along with the rise of 5G networks all over the world.

Marvell has a history of growing with aggressive acquisitions, and the recent purchase of 5G mobile-network hardware provider Inphi expands the company's addressable market significantly and should be viewed as a big positive going forward. There's also plenty to like about Marvell's Q2 earnings report, which saw the company increase its revenue by 49% year-over-year and deliver GAAP PES growth of 64% year amidst supply-chain issues. Consider adding shares of Marvell in the coming weeks as the stock has been consolidating and might hit new 52-week highs if the market can find its footing again.

ON Semiconductor Corp (NASDAQ: ON)

Another semi stock displaying impressive relative strength lately is ON Semiconductor Corp, which is a leading supplier of power and analog semiconductors along with image sensors. This is a great semi stock to own if you are bullish on the automotive industry and self-driving technology, as the company is a top supplier of the image sensors that are used in advanced driver-assist systems. ON Semiconductor also provides the chips that enable power management and conversion in electric vehicles, which means it's a great option for playing the future of the automotive industry.

The company also sells its chips to the industrial and communications end markets and even offers some exposure to consumer products, which each could provide strong growth opportunities for the company going forward. ON Semiconductor stock continues hitting new all-time highs following a strong Q2 earnings report that saw the company's sales set a quarterly record at $1.67 billion, representing a 38% year-over-year increase. This is clearly a semi stock with plenty of upside and a company that has focused its portfolio of products on some of the most attractive industries, which could mean big things are in store for long-term shareholders.

ASML Holding (NASDAQ:ASML)

Last, but certainly not least, is ASML Holding, a Netherlands-based manufacturer of chip-making equipment that might just be the best semiconductor stock you've never heard of. The stock has rallied over 82% year-to-date and continues to hold its uptrend despite the recent market weakness, which tells us that there is plenty of demand for shares. The bull case for this company is pretty straightforward - with a global chip shortage, ASML's customers are scrambling to expand their production capabilities. Since the company's photolithography systems are absolutely vital to the chip manufacturing process, ASML should see heavy demand over the next few years.

With chip-giants like Taiwan Semiconductor Manufacturing Corporation and Intel planning to spend big to deal with the unprecedented demand for semis, ASML continues to boost its revenue guidance. As of Q2, the company expects net sales to grow by 35% in 2021, and it wouldn't be surprising to see that number boosted again when the company delivers its Q3 results. While this semi stock is not cheap by any means, the company's wide economic moat, top-notch engineers, and massive relative strength make it a top pick for exposure to the industry.