2 Top-Ranked Chip Stocks To Buy For Income

black android smartphone turned on screenImage Source: UnsplashSemiconductors, commonly referred to as microchips, are a bright highlight of technology, existing in nearly every aspect of our lives.Over the last several years, chip stocks have exploded in popularity, and for an easy-to-understand reason – they have been stellar investments.And for those seeking exposure, several chip stocks – Micron Technology (MU) and ASML (ASML) – have all seen their near-term earnings outlooks shift favorably, reflecting optimism among analysts.Let’s take a closer look at each.Micron TechnologyMicron manufactures and markets high-performance memory and storage technologies. The stock is a Zacks Rank #1 (Strong Buy), with expectations moving higher across the board in a big way.Zacks Investment ResearchImage Source: Zacks Investment ResearchOn top of semiconductor exposure, investors stand to reap a passive income stream, with MU shares currently yielding 0.5% annually. While the yield isn’t that steep, it provides a nice buffer against potential drawdowns.And Micron’s forecasted growth is impossible to ignore, with consensus expectations for its current fiscal year suggesting 90% earnings growth on 43% higher sales. Peeking ahead, expectations for FY25 allude to an additional jump in earnings paired with a 45% sales bump.ASMLASML is a world leader in manufacturing advanced technology systems for the semiconductor industry. The company has seen its earnings outlook inch higher across nearly all timeframes, helping land it into a Zacks Rank #2 (Buy).Zacks Investment ResearchImage Source: Zacks Investment ResearchLike MU, ASML shares come with the perk of passive income, with ASML’s annual dividend currently yielding 0.7%. And the company has been committed to increasingly rewarding shareholders, with ASML carrying a sizable 33.4% five-year annualized dividend growth rate.Shares are expensive but less so on a historical basis, with the current 35.5X sitting beneath the 36.1X five-year median and highs of 55.4X in 2021. The stock sports a Value Style Score of ‘D.’Zacks Investment ResearchImage Source: Zacks Investment ResearchBottom LineSemiconductor stocks have enjoyed great runs over the last several years, quickly becoming cherished among investors.And for those interested in exposure, both stocks above – Micron Technology and ASML – precisely fit the criteria. In addition to favorable Zacks Ranks, both stocks pay out dividends, undoubtedly another great perk.More By This Author:High-Volume Trading Suggests It’s Time To Buy These Top-Rated Stocks3 Hartfort Mutual Funds To Buy Now For The Long Run Bull Of The Day – MercadoLibre


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