Semiconductor demand is set to take off thanks to the growing application of chips across a wide range of verticals, including automotive, industrial, technology, healthcare, and other sectors. According to a third-party estimate, the global semiconductor market's revenue could hit $803 billion by 2028 compared to an estimated $452 billion this year, clocking a compound annual growth rate of 8.6%. For comparison, the global semiconductor market was touted to grow at just 2.9% a year between 2015 and 2020.

The improving prospects of the semiconductor market bode well for the likes of Analog Devices (ADI -0.33%), Synaptics (SYNA 0.13%), and Broadcom (AVGO -0.23%) -- three stocks that have tripled in price the past five years.

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It wouldn't be surprising to see these stocks repeat their performance in the future thanks to the improving prospects of the semiconductor market. Let's look at the reasons why you should be buying these stocks right now.

1. Analog Devices

Analog Devices' chips are used in the industrial, communications, automotive, and consumer end markets, and almost all of them are in fine form.

Analog's total revenue shot up 26% year over year in Q2 to $1.66 billion after a 20% jump in Q1. The chipmaker registered terrific growth in the industrial and automotive businesses, which grew 36% and 42% year over year, respectively. These businesses accounted for 74% of Analog's total revenue last quarter, with industrial being its largest source of revenue, producing nearly 59% of its top line.

The automotive and industrial markets are going to be secular catalysts for Analog Devices. The semiconductor content in vehicles has been growing at a nice clip over the years. Deloitte points out that semiconductor-powered electronics account for 40% of a new car's cost, up from 18% back in 2000. That number is expected to keep growing, and hit 45% by 2030.

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In absolute terms, the semiconductor content per car is expected to hit $600 next year from $312 in 2013. The growing adoption of electric vehicles (EVs) is going to be a big tailwind for the automotive chip market, as they reportedly contain up to $1,000 worth of semiconductors. Analog Devices is tapping into the growing sales of EVs with its battery management systems, which are being used by leading automakers such as Volvo and other luxury brands.

The industrial market, on the other hand, is also moving toward increased automation and consuming more chips. The industrial automation market, which was worth $164 billion last year, is expected to hit $306 billion in revenue by 2027, according to a third-party estimate. Not surprisingly, Analog Devices is witnessing strong interest for chips that enable connectivity in an industrial setting, enjoying robust design win momentum at industrial customers, which is translating into impressive growth.

Analog Devices looks like a top tech stock for investors to buy for the long run thanks to the multiple growth drivers it is sitting on.

2. Synaptics

If you're looking for a stock to take advantage of the growing sales of personal computers (PCs), 5G smartphones, and the proliferation of the Internet of Things (IoT), Synaptics should be at the top of your list.

The company is winning big from the IoT market, which produced 45% of its total revenue in Q3 and doubled year over year to $146 million. Synaptics credited this eye-popping growth to better-than-expected demand for its IoT solutions across fast-growing markets such as home automation, streaming devices, and wearables.

Additionally, the increasing usage of touchscreen systems in vehicles is turning out to be a tailwind for Synaptics' IoT business. Several automakers are expected to deploy the company's touchscreen controllers in their upcoming models -- a trend that's expected to continue for a long time. TechNavio estimates that nearly 23 million additional automotive touchscreen control systems are set to be deployed in the next five years.

Synaptics management believes that these diversified end markets will keep powering its IoT business in the long run. CEO Michael Hurlston explained this on the May earnings conference call:

In IoT, we continue to aggressively expand and diversify our customer base and end markets across all our product lines. With our strong backlog and design win momentum, we are increasingly confident that we can outpace the 10% to 15% industry growth rate.

The PC market is Synaptics' next big source of revenue, accounting for 30% of the top line in Q3. This business has taken off remarkably in the wake of the novel coronavirus pandemic, which led to a shift toward remote work and online education. Synaptics recorded 25% year-over-year growth in the PC business last quarter to $98 million, and that momentum won't be fading any time soon. IDC estimates that PC sales could grow 18.2% this year, following last year's 12.9% increase. What's more, PC sales growth seems here to stay and should pave the way for consistently robust improvement in Synaptics' sales in this segment.

Finally, the mobile business that accounts for the remainder of Synaptics' revenue stands to win big from the usage of organic light-emitting diode (OLED) displays in 5G smartphones. The chipmaker is supplying OLED touch controllers to a wide range of smartphone OEMs (original equipment manufacturers). This puts it in a solid position to benefit from the OLED display market, which is expected to grow 40% annually for the next five years. All these opportunities indicate why analysts expect Synaptics to clock double-digit percentage annual earnings growth for the next five years.

3. Broadcom

Trading at just 15.7 times forward earnings, Broadcom is one of the best growth stocks to buy right now. The chipmaker's fiscal 2021 Q2 revenue shot up 15% year over year to $6.6 billion, thanks to outstanding growth in the semiconductor solutions segment, which accounted for nearly 73% of its top line.

Broadcom is swamped by huge demand for its connectivity chips, which are used in the networking, wireless, server, broadband, and industrial markets. These end markets drove 20% year-over-year growth in the company's semiconductor solutions business to $4.8 billion, and Broadcom's outlook suggests that they are expected to switch into a higher gear.

Broadcom anticipates $6.75 billion in revenue this quarter, an increase of almost 16% year over year. Broadcom should be able to sustain such strong growth rates given the huge end-market opportunities it is sitting on. Broadcom estimates that broadband demand is in a resurgent phase now, and has a lot of room to grow. This business recorded 28% year-over-year growth last quarter.

Broadcom management estimates that just 30% of passive optical networks (PON) are based on the next-generation 10G technology. Increasing demand for faster broadband across the globe should force carriers to upgrade, which should bode well for Broadcom, as broadband represents 18% of its semiconductor revenue.

The networking business, which accounts for nearly a third of Broadcom's semiconductor revenue, recorded 10% year-over-year growth last quarter. It looks poised to grow at faster rates in the future on the back of 5G infrastructure investments and improving data center capacity.

The wireless business, on the other hand, is already in fine form. It recorded 48% year-over-year growth last quarter and accounted for 34% of semiconductor sales. The company managed to ship more wireless chips than it anticipated during the quarter despite the impact of seasonality. The good news is that Broadcom's wireless revenue is expected to jump 30% year over year this quarter, and it could take off later in the year thanks to its relationship with Apple (AAPL 0.24%).

At the beginning of 2020, Broadcom announced that it would sell $15 billion worth of wireless chips to Apple for use in the latter's iPhones over a period of three and a half years. Apple accounted for 15% of Broadcom's total sales last fiscal year, and this relationship bodes well from a long-term point of view given Apple's dominance of the 5G smartphone market. Apple is expected to set new iPhone sales records this year and do well next year as well, with total revenue from the product line exceeding $200 billion.

Broadcom's multiple catalysts make it a no-brainer buy at its current valuation, as it should remain a top stock for a long time to come.