In this piece we will take a look at the ten best semiconductor stocks to invest in according to Noam Gottesman’s GLG Partners. If you want to jump to the top five stocks in this list, then take a look at 5 Best Semiconductor Stocks to Invest In According to Noam Gottesman’s GLG Partners.
Noam Gottesman is a British-American investor who is known for having founded the investment firm GLG Partners. The executive was one of the cofounders of this investment firm, which he helped set up in 1995. 15 years afterward, he and his partners sold GLG Partners to the Man Group, which is one of the oldest businesses in the world. Two years later, in 2012, he would retire from his role as the co-chief executive officer (CEO) of GLG Partners. After this, he went on to create National Foods, which is now Europe’s largest frozen food company.
Following its acquisition by the Man Group, GLG Partners was renamed Man GLG. The firm employs several kinds of investment strategies, including long-only, long/short, and emerging market funds. It is headquartered in London, United Kingdom, and has offices in New York, United States, Hong Kong, and Zurich, Switzerland.
Mr. Gottesman’s endeavors in the financial world have made him into a billionaire. According to Forbes Magazine, the executive, who is currently the CEO of TOMS Capital Investment Management, an investment fund based out of New York, was worth $2.5 billion as of March this year, making him one of the richest people on Earth.
Man GLG’s investment portfolio was worth $31 billion as of the end of the fourth quarter of last year. A cursory look at the companies present in it shows that while the top holdings are concentrated in the technology and semiconductor industry, overall, the fund takes a balanced investment approach.
The concentration in semiconductors is good news as that’s what we’ll be talking about in this piece. The top three chip investments in Man GLG’s portfolio are in the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Intel Corporation (NASDAQ:INTC), and Texas Instruments Incorporated (NASDAQ:TXN). These represent a broad approach that covers chip manufacturing, personal computing, and semiconductor design.
Noam Gottesman of GLG Partners
Our Methodology
To determine which semiconductor firms are on Man GLG’s radar, we took a look at its regulatory filings for Q4 2021. This enabled us to sift out the top ten chip companies from the countless others. Following this, we took a detailed look at the firms through the lens of their investor letters, analyst coverage, earnings reports, relevant industry news, large holdings, and hedge fund sentiment gathered via Insider Monkey’s survey of 924 funds for the fourth quarter of last year.
10 Best Semiconductor Stocks to Invest In According to Noam Gottesman’s GLG Partners
10. Applied Materials, Inc. (NASDAQ:AMAT)
GLG’s Stake Value: $96.3 million
Percentage of GLG’s 13F Portfolio: 0.3%
Number of Hedge Fund Holders: 79
Applied Materials, Inc. (NASDAQ:AMAT) is an American company that is directly involved in chip manufacturing. The company is one of the few in the world that is capable of producing machines that are used in semiconductor fabrication. It is headquartered in Santa Clara, California, and is one of the oldest chip companies in the world after being founded in 1967.
Man GLG owned 612,192 Applied Materials, Inc. (NASDAQ:AMAT) shares during the fourth quarter of last year. This translated into a stake worth $96.3 million which represented 0.3% of its portfolio. 79 out of the 924 hedge funds polled by Insider Monkey in Q4 2021 also held a stake in the company.
As its first fiscal quarter came to an end, Applied Materials, Inc. (NASDAQ:AMAT) brought in $6.2 billion in revenue and $1.89 in non-GAAP EPS, in a strong set of results that beat analyst estimates for both. Citi increased the company’s share price target to $180 from $178 in February 2022, due to the earnings results.
Applied Materials, Inc. (NASDAQ:AMAT)’s largest investor is David Blood and Al Gore’s Generation Investment Management through a $672 million stake via owning 4.2 million shares.
LRT Capital Management mentioned Applied Materials, Inc. (NASDAQ:AMAT) in its third quarter 2021 investor letter, and stated that:
“Compare Rivian to Applied Materials (AMAT), a semiconductor equipment supply company that specializes in the “frontend” (primarily patterning) of the semiconductor manufacturing process. The company makes products that are critical to making modern computer chips. It has a market cap of approximately $145 billion dollars. It, also, generated $0 from selling EVs over its lifetime. However, Applied Materials generated $21 billion in revenue and $5.1 billion in net income over the past twelve months alone in its semiconductor equipment business. Since a company that sells no EVs is worth $150 billion, then Applied Materials semiconductor business is being valued at a negative $5 billion dollars…”
Along with Intel Corporation (NASDAQ:INTC), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), and Texas Instruments Incorporated (NASDAQ:TXN), Applied Materials, Inc. (NASDAQ:AMAT) is one of Man GLG’s favorite semiconductor stocks.
9. QUALCOMM Incorporated (NASDAQ:QCOM)
GLG’s Stake Value: $110 million
Percentage of GLG’s 13F Portfolio: 0.35%
Number of Hedge Fund Holders: 76
QUALCOMM Incorporated (NASDAQ:QCOM) is one of the world’s largest semiconductor designers. Its products include smartphone processors, graphics processing units (GPUs), and modems alongside others that power different devices such as the Internet of Things (IoT) gadgets and automotives.
For its first fiscal quarter, QUALCOMM Incorporated (NASDAQ:QCOM) brought in $10.7 billion in revenue and $3.23 in non-GAAP EPS, beating analyst estimates for both. Baird increased the company’s price target to $250 from $200 in February 2022, outlining that the company was positioned strongly despite the feared inventory correction in the semiconductor market that has plagued analysts’ minds.
Mr. Gottesman’s former investment firm held a stake of $110 million in QUALCOMM Incorporated (NASDAQ:QCOM) during Q4 2021, which came by owning 603,485 shares. During the same time period, 76 of the 924 hedge funds profiled by Insider Monkey also held the company’s shares.
Panayotis Takis Sparaggis’ Alkeon Capital Management is QUALCOMM Incorporated (NASDAQ:QCOM)’s largest investor. It owns 5.3 million shares worth $970 million.
8. Skyworks Solutions, Inc. (NASDAQ:SWKS)
GLG’s Stake Value: $135 million
Percentage of GLG’s 13F Portfolio: 0.43%
Number of Hedge Fund Holders: 41
Skyworks Solutions, Inc. (NASDAQ:SWKS) is an American company whose semiconductor products are present in a wide variety of technology products. The company designs and sells chips such as radios, amplifiers, converters, switches, and regulators.
Skyworks Solutions, Inc. (NASDAQ:SWKS) earned $1.5 billion in revenue and $3.14 in non-GAAP EPS during its first fiscal quarter, in a set of results that saw it beat analyst estimates for both even as revenue growth remained flat annually. 41 out of the 924 hedge funds surveyed by Insider Monkey during the fourth quarter of last year owned the company’s shares, and its price target was lowered by B.Riley to $175 from $210 in February 2022 as the firm cited seasonality as a headwind for near term demand but shared optimism for the company in the long term.
As Q4 2021 came to an end, Man GLG held 871,996 Skyworks Solutions, Inc. (NASDAQ:SWKS) shares that were worth $135 million and made up 0.43% of its portfolio. This marked a whopping 535% growth in activity over the previous quarter.
After Man GLG, Skyworks Solutions, Inc. (NASDAQ:SWKS) largest investor is Robert Joseph Caruso’s Select Equity Group. It owns 847,787 shares worth $131 million.
7. NXP Semiconductors N.V. (NASDAQ:NXPI)
GLG’s Stake Value: $137 million
Percentage of GLG’s 13F Portfolio: 0.44%
Number of Hedge Fund Holders: 46
NXP Semiconductors N.V. (NASDAQ:NXPI) is a diversified semiconductor company whose products are present in a host of technology products. These products include smartphones, communications infrastructure, the Internet of Things (IoT) and automotives, among a few.
By the end of Q4 of 2021, Man GLG had held 604,440 NXP Semiconductors N.V. (NASDAQ:NXPI) shares which were worth $137 million and constituted 0.44% of its portfolio. During the same time period, 46 of the 924 hedge funds polled by Insider Monkey had also owned a stake in the company.
At the end of its fourth fiscal quarter, NXP Semiconductors N.V. (NASDAQ:NXPI) had earned $3 billion in revenue and $2.24 in GAAP EPS, in a strong set of results that saw it surpass Wall Street estimates for both. Subsequently, Truist raised the company’s price target to $265 from $250 in February 2022, stating that not only had the company delivered a “near perfect” quarter, but that its outlook was even stronger.
NXP Semiconductors N.V. (NASDAQ:NXPI)’s largest investor is Ken Fisher’s Fisher Asset Management. It owns 897,844 shares worth $204.5 million.
ClearBridge Investments mentioned NXP Semiconductors N.V. (NASDAQ:NXPI) in its Q3 2021 investor letter and outlined that:
“Over the last year, we have sought to improve the up capture of the portfolio by expanding exposure to the select bucket of companies growing revenues and earnings at meaningfully above-average rates and targeting large total addressable markets. Newer names in the select bucket like NXP Semiconductors N.V. (NASDAQ:NXPI) have been strong contributors to relative performance over this period. We believe that owning a broader group of IT and Internet companies with different drivers to the businesses helps manage some of the risk in this relatively more expensive subsector.”
6. Synopsys, Inc. (NASDAQ:SNPS)
GLG’s Stake Value: $181 million
Percentage of GLG’s 13F Portfolio: 0.58%
Number of Hedge Fund Holders: 42
Synopsys, Inc. (NASDAQ:SNPS) is a software company that provides products that enable chip manufacturers and others to test semiconductors after they have been fabricated. It is headquartered in Mountain View, California, United States.
As Q4 2021 came to an end, Man GLG had a $181 million stake in Synopsys, Inc. (NASDAQ:SNPS) which came in the form of 491,937 shares. An Insider Monkey poll covering 924 hedge funds during the same time period revealed that 42 had owned the company’s shares.
For its fiscal first quarter, Synopsys, Inc. (NASDAQ:SNPS) brought in $1.27 billion in revenue and $2.40 in non-GAAP EPS, with its EPS beating analyst estimates and the revenue meeting them. KeyBanc raised the company’s share price target to $445 from $395 in January 2022, stating that the Electronic Design Automation (EDA) industry has now started to enter double digit growth. Synopsys, Inc. (NASDAQ:SNPS)’s EDA tools are used by semiconductor firms.
Synopsys, Inc. (NASDAQ:SNPS)’s largest investor is Panayotis Takis Sparaggis’ Alkeon Capital Management. It owns 2.6 million shares that are worth $970 million.
Synopsys, Inc. (NASDAQ:SNPS) was mentioned by Carillon Tower Advisers in its fourth quarter 2021 investor letter. Here is what the firm said:
“Synopsys is a semiconductor software company that supplies electronic design automation solutions to the global electronics market. The firm’s shares outperformed in the quarter after management outlined a longer-term vision at the company’s analyst day and suggested a higher level of growth going forward than it has achieved in the previous few years. Synopsys is becoming a key supplier of leading-edge semiconductor designs that are getting increasingly more difficult for chip companies to build on their own. On top of accelerating topline growth, the company also posts healthy profits and robust cash flow generation.”
Synopsys, Inc. (NASDAQ:SNPS) joins Texas Instruments Incorporated (NASDAQ:TXN), Intel Corporation (NASDAQ:INTC) and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as one of Man GLG’s top chip stock picks.
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Disclosure: None. 10 Best Semiconductor Stocks to Invest In According to Noam Gottesman’s GLG Partners is originally published on Insider Monkey.
