In this article, we discuss the 35 chip stocks in focus amid the tech sector selloff.
The semiconductor industry is on a trajectory of rapid growth, with global revenues expected to exceed $1 trillion by 2030. According to a report on the industry by professional services firm PwC, this expansion is fueled by advancements in memory technology, the rise of automotive semiconductors, regional self-sufficiency initiatives, purpose-built silicon, and the increasing demand for artificial intelligence (AI) applications. Per the report, Memory integrated circuits (ICs), particularly DRAM and high-bandwidth memory (HBM), have been the fastest-growing semiconductor segment. In 2024, DRAM is projected to contribute 14% of total semiconductor revenue. HBM, essential for AI and high-performance computing (HPC), is expected to grow at a 64% compound annual growth rate (CAGR) in bit growth and a 58% CAGR in revenue through 2028. As big companies leverage HBM for AI workloads, closer collaboration is required between foundries and memory firms to integrate logic and memory components effectively.
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PwC highlights that the automotive semiconductor market reached $76 billion in 2023 and is projected to grow to $117 billion by 2028, driven by electric vehicle (EV) adoption and software-defined vehicles (SDVs). Power semiconductors, particularly those utilizing silicon carbide (SiC) and gallium nitride (GaN), are expected to reach $6 billion, comprising 18% of the market by 2028. Meanwhile, automotive system-on-chip (SoC) revenue was $7 billion in 2023 and is projected to grow at a 17% CAGR through 2028, supporting real-time data processing, advanced driver assistance systems (ADAS), and infotainment. The COVID-19 pandemic exposed vulnerabilities in the semiconductor supply chain, prompting major economies to pursue self-sufficiency. By 2027, approximately $400 billion in government funding is expected to be allocated to semiconductor initiatives.
The US has already awarded $29.5 billion in grants and $25.1 billion in loans, with total investments projected to reach $348 billion by 2030. The European Union has allocated $46 billion for incentives, while China has invested over $190 billion through its National Integrated Circuit Investment Fund and local initiatives. South Korea, Taiwan, and Japan have also introduced tax incentives and subsidies to boost domestic semiconductor production. The demand for custom ICs tailored to specific applications is surging, especially in data centers, video processing, and network security. By 2028, the market for data center custom ICs is expected to reach $24 billion. AI is a critical growth driver for the semiconductor industry, requiring GPUs, accelerators, and HBM. The AI-specific silicon market is forecasted to reach $150 billion by 2028.
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For this article, we selected companies that operate in the semiconductor sector that are in focus as investors exit tech stocks amid fears of an AI bubble. These stocks are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close up of a circuit board, its microchips creating a powerful computing system.
Chip Stocks In Focus Amid Tech Selloff
35. EMCORE Corporation (NASDAQ:EMKR)
Number of Hedge Fund Holders: 2
EMCORE Corporation (NASDAQ:EMKR) designs and manufactures fiber optic gyro, ring laser gyro, and micro electromechanical system-based inertial sensors and systems. In November last year, the company signed a merger agreement with Velocity One, an aerospace manufacturing holding company. Under the deal, the former would become a wholly-owned subsidiary of the latter for $3.10 per share. Matt Vargas, the CEO of EMCORE said on the occasion that the merger underscored a commitment to the domestic and international customer base, including strengthening relationships with and generating synergies across a range of high-priority US and NATO defense programs and industrial partners. In earnings for the fourth fiscal quarter, the firm reported a revenue of $21.7 million, a 6% quarter-over-quarter increase, while generating a positive cash flow of $1.8 million.
34. ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS)
Number of Hedge Fund Holders: 2
ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS) markets semiconductor assembly and testing services. In January, the company announced a share repurchase program with a total amount of up to NT$350 million. Under this commitment, the company will repurchase up to 10,000,000 shares from the open market on the Taiwan Stock Exchange, representing approximately 1.38% of its issued share capital. In the earnings of the third quarter of 2024, the company reported a 4.4% increase in revenue compared to the second quarter of 2024 and an 8.7% increase year-over-year.
33. STMicroelectronics N.V. (NYSE:STM)
Number of Hedge Fund Holders: 18
STMicroelectronics N.V. (NYSE:STM) makes and sells semiconductor products. In the earnings of the fourth quarter of 2024, the company demonstrated solid financial health with net revenues of $3.32 billion, a gross margin of 37.7%, and an operating margin of 11.1%, supported by efficient cost management and consistent profitability. In February, the company announced its collaboration with HighTec EDV-Systeme for safer software-defined vehicles. The solution brings together HighTec’s Rust compiler, certified to ISO 26262 ASIL D, with ST’s Stellar, the first 28nm microcontroller to achieve the same safety standard. As Rust gains popularity in the automotive industry for its safety and reliability, this combination provides a strong, future-proof solution.
32. MaxLinear, Inc. (NASDAQ:MXL)
Number of Hedge Fund Holders: 18
MaxLinear, Inc. (NASDAQ:MXL) provides systems-on-chips solutions. In the earnings of the fourth quarter, the company reported net revenue of $92.2 million, increasing 14% sequentially from the same quarter of the prior year. In December last year, the company launched three new quad RS-485 serial receivers specifically designed to ensure reliable communication in harsh industrial environments. The new Quad RS-485 Receivers offer 12 product variations with two-speed options (10Mbps and 32Mbps) in two package variants. Amit Bavisi, VP and GM of Analog Mixed-Signal BU at MaxLinear, stated that these new products offer strong system-level protection against ESD and high voltage events, ensuring minimal downtime and long life in extreme conditions.
31. GlobalFoundries Inc. (NASDAQ:GFS)
Number of Hedge Fund Holders: 22
GlobalFoundries Inc. (NASDAQ:GFS) provides a range of mainstream wafer fabrication services and technologies worldwide. The report for the third quarter of 2024 shows revenue of $1.7 billion and a gross margin of 23.8%, suggesting a moderate level of profitability from the company’s core operations. Global News Wire reported in January that the company plans to establish a new center for advanced packaging and testing of US-made chips at its New York facility. The center will securely manufacture, process, package, and test semiconductors in the US, backed by investments from New York State and the US Department of Commerce. This will support the growing demand for GF’s silicon photonics and other essential chips needed in AI, automotive, aerospace, defense, and communications.
30. Ultra Clean Holdings, Inc. (NASDAQ:UCTT)
Number of Hedge Fund Holders: 24
Ultra Clean Holdings, Inc. (NASDAQ:UCTT) provides tools and subsystems for the semiconductor market. The company’s Fluid Solutions product lines, such as UltraClean Pump System, UltraClean Fluid Systems, and UltraClean Chemical Delivery Systems (CDS), offer components designed for precise flow tuning and volume control. They also address complex challenges such as high-purity chemical delivery systems for semiconductor applications and high-pressure, temperature-sensitive solutions for chemical and pharmaceutical processes. In the earnings for the third quarter, the company reported robust financial growth, as the total revenue was $540.4 million, up 24% year-on-year and beating estimates by over $24 million.
29. Amkor Technology, Inc. (NASDAQ:AMKR)
Number of Hedge Fund Holders: 27
Amkor Technology, Inc. (NASDAQ:AMKR) provides semiconductor packing and test services. In the earnings for the third quarter, the company posted a 27% sequential increase in net sales to $1.86 billion, highlighting a significant boost in revenue, likely driven by higher product demand and effective sales strategies. In January, Amkor Portugal signed a strategic education partnership with ATEC. This new collaboration protocol focuses on sharing cutting-edge scientific and technical knowledge, creating new qualification programs and facilitating technical visits. It also offers valuable internship opportunities for ATEC graduates at Amkor facilities.
28. Axcelis Technologies, Inc. (NASDAQ:ACLS)
Number of Hedge Fund Holders: 29
Axcelis Technologies, Inc. (NASDAQ:ACLS) markets ion implantation and other processing equipment used for the fabrication of semiconductor chips. In the earnings for the third quarter of 2024, the company reported revenue of $256.6 million, compared to $256.5 million for the second quarter of 2024, indicating a stable top-line performance with a marginal increase. The company’s Purion Power Series is already attracting investor interest due to its highly differentiated features and process control. Ion implantation is one of the most critical steps in the manufacturing of Silicon Carbide devices, a market which is estimated by Yole to grow at a 25% CAGR from 2023 – 2029.
27. Fortive Corporation (NYSE:FTV)
Number of Hedge Fund Holders: 31
Fortive Corporation (NYSE:FTV) designs, develops, manufactures, and services professional and engineered products, software, and services in the United States, China, and internationally. The firm reported revenues of $1.54 billion for Q3 2024, marking a 3% increase compared to the same period in the previous year. This growth included a 1% rise in core revenues. The company achieved a GAAP diluted EPS of $0.63. On an adjusted basis, diluted EPS was $0.97, reflecting a 14% year-over-year increase and surpassing analysts’ expectations of $0.93. The adjusted operating profit margin reached 27%, representing a 90 basis point improvement from the prior year.
26. Lattice Semiconductor Corporation (NASDAQ:LSCC)
Number of Hedge Fund Holders: 32
Lattice Semiconductor Corporation (NASDAQ:LSCC) makes and sells semiconductor products. The report for the third quarter of 2024 shows strong growth with reported revenue of $127.1 million, a GAAP gross margin of 69%, and GAAP net income of $0.05 per diluted share. In December last year, the company announced to strengthen its edge-to-cloud FPGA innovation with the launch of new hardware and software solutions. The Lattice Nexus 2 platform and its first device family, Lattice Certus-N2 FPGAs, deliver advanced connectivity, optimized power and performance, and top-tier security. The company has also announced new mid-range FPGA device capacity options – Lattice Avant 30 and Avant 50 – and new versions of Lattice design software tools and application-specific solution stacks to help accelerate customer time-to-market.
25. Keysight Technologies, Inc. (NYSE:KEYS)
Number of Hedge Fund Holders: 36
Keysight Technologies, Inc. (NYSE:KEYS) provides electronic design and test solutions to industries in the Americas, Europe, and the Asia Pacific. In the earnings of the fourth quarter of 2024, the Communications Solutions Group of the firm reported revenue of $894 million, reflecting 4% growth in commercial communications driven by AI-related investment. In early February, Keysight Technologies and the University of Malaga launched a cutting-edge research laboratory focused on the development of 6G technology. This facility is dedicated to advancing 6G technology through comprehensive solutions that address key use cases and technological challenges. The firm’s collaboration with NVIDIA on the 6G Research Cloud Platform will provide researchers with advanced tools for developing AI-driven radio access network technologies, further supporting the lab’s work in shaping the future of communication.
24. Microchip Technology Incorporated (NASDAQ:MCHP)
Number of Hedge Fund Holders: 37
Microchip Technology Incorporated (NASDAQ:MCHP) develops, manufactures, and sells smart, connected, and secure embedded control solutions in the Americas, Europe, and Asia. In the earnings of the fourth quarter of 2024, the company reported a GAAP gross profit of 59.6%, reflecting efficiency in generating profit after direct costs, with an operating income of $253.5 million. In January, the firm announced its second-generation Low-Noise Chip-Scale Atomic Clock. The product features a lower profile and a wider temperature range, providing low-phase noise and stability in demanding conditions. This device enables customers to achieve superior signal clarity and atomic-level accuracy while also benefiting from reduced design complexity and lower power consumption.
23. Monolithic Power Systems, Inc. (NASDAQ:MPWR)
Number of Hedge Fund Holders: 38
Monolithic Power Systems, Inc. (NASDAQ:MPWR) engages in the design, development, marketing, and sale of semiconductor-based power electronics solutions for the computing and storage, automotive, industrial, communications, and consumer markets. In the earnings of the third quarter of 2024, the company reported revenue of $620.1 million, a 22.2% increase from $507.4 million for the quarter and a 30.6% increase from $474.9 million for the quarter of the prior year. The company’s adoption of Jama Connect also warrants a mention. It is a platform designed to manage complex requirements and enhance collaboration across globally distributed teams. This adoption improves efficiency and scalability in developing high-quality power solutions.
22. Arm Holdings plc (NASDAQ:ARM)
Number of Hedge Fund Holders: 38
Arm Holdings plc (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers. In the earnings calls for the third quarter of fiscal year 2025, CEO Rene Haas highlighted that AI demand was driving strong momentum across Arm’s ecosystem, resulting in record total revenue and royalty revenue for Q3 2025. He noted that total revenue grew 19% year-on-year, exceeding the high-end of guidance, while royalty revenue increased 23% year-on-year. Haas pointed to the adoption of Armv9 and CSS technologies as key growth drivers across end markets, including smartphones, data centers, and IoT. He cited MediaTek’s Dimensity 9400 SoC and flagship smartphones from Oppo and Vivo as examples of successful product deployment.
21. Entegris, Inc. (NASDAQ:ENTG)
Number of Hedge Fund Holders: 42
Entegris, Inc. (NASDAQ:ENTG) develops, manufactures, and supplies microcontamination control products, specialty chemicals, and advanced materials handling solutions. In the earnings for the third quarter of 2024, the company reported GAAP net income of $77.6 million. In December last year, the company and the US Department of Commerce entered into a definitive agreement with the firm providing for up to $77 million in funding under the CHIPS and Science Act. This funding will support the development of a cutting-edge center in Colorado Springs, focused on creating products essential for the future of semiconductor manufacturing in the US.
20. Teradyne, Inc. (NASDAQ:TER)
Number of Hedge Fund Holders: 43
Teradyne, Inc. (NASDAQ:TER) designs, develops, manufactures, and sells automated test systems and robotics products globally. In January, the company entered into a strategic partnership with Infineon Technologies to advance power semiconductor tests. As part of the strengthened relationship, Teradyne will acquire part of Infineon’s automated test equipment team (AET) in Regensburg, Germany. Rick Burns, President of the Semiconductor Test Group at Teradyne, stated that acquiring and integrating Infineon’s technology and team in Regensburg will extend the firm’s leadership in the power semiconductor market. In the earnings of the fourth quarter of 2024, the company reported revenue of $753 million out of which $561 million was in Semiconductor Test and $98 million in Robotics.
19. TE Connectivity Ltd. (NYSE:TEL)
Number of Hedge Fund Holders: 44
TE Connectivity Ltd (NYSE:TEL) manufactures and sells connectivity and sensor solutions. The company recently posted earnings for the first fiscal quarter of 2025, reporting earnings per share of $1.95, beating analyst expectations by $0.06. The revenue over the period was $3.84 billion, missing estimates by $70 million. The AI-related offerings of the firm are mainly embedded in sensor technologies, which are used in applications like autonomous vehicles, smart factories, and connected devices. TE also integrates AI into edge computing solutions. The sensor and connectivity products contribute significantly to the overall revenue of the company.
18. NXP Semiconductors N.V. (NASDAQ:NXPI)
Number of Hedge Fund Holders: 44
NXP Semiconductors N.V. (NASDAQ:NXPI) makes and sells various products related to semiconductors. In January, the company secured a €1 billion loan from the European Investment Bank (EIB) to support research and development projects across Austria, France, Germany, the Netherlands, and Romania. The funds will be utilized for developing new power electronics devices, microprocessors, and microcontrollers focused on improving energy efficiency. The firm recently reported Q4 2024 revenue of $3.11 billion, reflecting a 9% year-over-year decline. The automotive segment performed near the high end of guidance at $1.79 billion, down 6% year-over-year, while the Industrial & IoT segment fell 22% year-over-year to $516 million. CEO Kurt Sievers highlighted two strategic acquisitions during the earnings call, Aviva Links for $243 million to enhance automotive connectivity solutions and TT Tech Auto for $625 million to bolster software-defined vehicle platforms. Both transactions are expected to contribute revenue starting in 2027.
17. ON Semiconductor Corporation (NASDAQ:ON)
Number of Hedge Fund Holders: 45
ON Semiconductor Corporation (NASDAQ:ON) provides intelligent sensing and power solutions in the United States and internationally. In January, the company announced the complete acquisition of the Silicon Carbide Junction Field-Effect Transistor (SiC JFET) technology business, including the United Silicon Carbide subsidiary, from Qorvo for $115 million in cash. This acquisition will strengthen the company’s leadership in power semiconductors. Truist Securities recently downgraded the shares to Hold from Buy. The firm also lowered the price target on the shares to $60 from $85. Analysts led by William Stein said that the management noted that recent demand trends have deteriorated and indicated that the business it intended to exit over the last couple of years will come to fruition this year, further pressuring revenue and, in turn, margins. The analysts added that despite the recent sell-off in the shares, they see a more cautious stance on the stock as warranted until estimates are reset lower.
16. Corning Incorporated (NYSE:GLW)
Number of Hedge Fund Holders: 46
Corning Incorporated (NYSE:GLW) engages in the display technologies, optical communications, environmental technologies, specialty materials, and life sciences businesses. In the earnings of the fiscal year 2024, the company reported record core sales of $3.9 billion, increasing 18% year over year, and core EPS of $0.57, showing growth more than twice the rate of sales. In January, the company, along with Samsung Electronics, announced that the Galaxy S25 Ultra will feature Corning Gorilla Armor 2, the industry’s first scratch-resistant, anti-reflective glass ceramic cover material for mobile devices.
15. Texas Instruments Incorporated (NASDAQ:TXN)
Number of Hedge Fund Holders: 57
Texas Instruments Incorporated (NASDAQ:TXN) designs, manufactures, and sells semiconductors to electronics designers and manufacturers. In December last year, the US Department of Commerce awarded the firm up to $1.6 billion in CHIPS Act funding to support three new 300mm semiconductor wafer fabs under construction in Texas and Utah. The company also expects to receive an estimated $6 billion to $8 billion from the US Department of the Treasury’s Investment Tax Credit for qualified US manufacturing investments. In earnings for the fourth quarter of 2024, the firm reported EPS of $1.30, beating estimates by $0.10, and revenue of $4 billion, beating estimates by $140 million.
14. Lam Research Corporation (NASDAQ:LRCX)
Number of Hedge Fund Holders: 58
Lam Research Corporation (NASDAQ:LRCX) markets semiconductor processing equipment. In the earnings for the fourth quarter of 2024, the company reported a GAAP gross margin of 47.4%, a GAAP operating income as a percentage of revenue of 30.5%, and a GAAP diluted EPS of $0.92. In January, the firm announced that Aether, its innovative dry photoresist technology, has been selected by a leading memory manufacturer as a production tool of record for the most advanced DRAM processes. Dry resist, introduced by Lam in 2020, enhances the resolution, productivity, and yield of Extreme Ultraviolet (EUV) lithography, a key technology for producing next-generation semiconductor devices.
13. KLA Corporation (NASDAQ:KLAC)
Number of Hedge Fund Holders: 61
KLA Corporation (NASDAQ:KLAC) markets process control and yield management solutions for the semiconductor industry. The fourth-quarter report for 2024 shows strong performance, with total revenues of $2.57 billion, exceeding the guidance range of $2.5 billion. The firm is a leading player in the semiconductor industry, offering significant products and services. For instance, KLA’s advanced wafer inspection systems, such as the TeraFab and SurfScan series, play a key role in the semiconductor manufacturing process by detecting defects and ensuring high yield in the production of semiconductor devices.
12. Analog Devices, Inc. (NASDAQ:ADI)
Number of Hedge Fund Holders: 63
Analog Devices, Inc. (NASDAQ:ADI) designs, manufactures, tests, and markets integrated circuits (ICs), software, and subsystems products. As per the report for the fourth quarter of 2024, the company reported revenue of more than $2.4 billion, exceeding the midpoint of guidance, indicating strong performance across all end markets and solid sequential growth. In January, the US Department of Commerce announced the signing of four separate non-binding preliminary memorandum of terms (PMT) under the CHIPS and Science Act to provide up to $105 million in proposed direct funding to Analog Devices. Per the firm, the investment will help the company strengthen workforce training and community partnerships, as well as expand the efforts to manage environmental footprints.
11. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 64
ASML Holding N.V. (NASDAQ:ASML) makes and sells advanced semiconductor equipment systems. In the earnings of the fourth quarter of 2024, the company reported total net sales of €9.3 billion, gross margin of 51.7%, and net income of €2.7 billion. CEO Christophe Fouquet said during the earnings call that the news of DeepSeek developing a large language model more efficiently should not affect chip equipment manufacturers. Even if LLMs can be made with less computing power, it still requires powerful chips to run the AI applications, he said. He further noted that if AI demand continues to be strong and customers are successful in bringing on additional capacity online to support that demand, there is potential opportunity towards the upper end of the range.
10. Amphenol Corporation (NYSE:APH)
Number of Hedge Fund Holders: 72
Amphenol Corporation (NYSE:APH) primarily designs, manufactures, and markets electrical, electronic, and fiber optic connectors. In the earnings of the fiscal year 2024, the company reported sales of $15.2 billion, showing an increase of 21% in US dollars and 13% organically compared to the full year 2023. In February, the company announced that it had completed the acquisition of CommScope’s Outdoor Wireless Networks (OWN) and Distributed Antenna Systems (DAS) businesses. R Adam Norwitt, Amphenol’s President and Chief Executive Officer, stated that the acquisition of the OWN and DAS businesses strengthens Amphenol’s portfolio of innovative and advanced technologies for communications networks. The acquisition is expected to be approximately $0.06 accretive to Amphenol’s 2025 earnings per share.
9. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Hedge Fund Holders: 70
Marvell Technology, Inc. (NASDAQ:MRVL) makes and sells semiconductors. In the earnings of the fourth quarter, the company reported $5.5 billion in net revenue, reflecting strong overall sales for fiscal 2024. In January, the company announced the advancement of its custom XPU architecture with co-packaged optics (CPO) technology. The firm is also extending its custom silicon leadership by enabling customers to seamlessly integrate CPO into their next-generation custom XPUs and scale up the size of their AI servers from tens of XPUs within a rack, currently using copper interconnects, to hundreds across multiple racks using CPO. The innovative architecture enables cloud hyperscale to develop custom XPUs that achieve higher bandwidth density.
8. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 68
Intel Corporation (NASDAQ:INTC) markets key technologies for smart devices. In January, the company introduced the Adaptive Control Unit (ACU) designed for electric vehicle (EV) power trains and zonal controller applications. The ACU U310 is a new kind of processing unit that supports the consolidation of multiple real-time, safety-critical and cybersecurity functions, applications and domains (X-in-1) into a single chip. Later in the month, the company unveiled the new Intel Core Ultra (Series 2) processors, designed to revolutionize mobile computing for businesses, creators and enthusiast gamers. These latest additions to the Intel Core Ultra family feature cutting-edge AI enhancements, increased efficiency and performance improvements. In the earnings of the third quarter of 2024, the company reported revenue of $14.3 billion, decreasing by 7% year-over-year and full-year revenue was $53.1 billion, decreasing by 2% year-over-year.
7. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 74
Applied Materials, Inc. (NASDAQ:AMAT) provides equipment, services, and software for the semiconductor industry. In the earnings of the fourth quarter, the company reported revenue of $7.05 billion, showing an increase of 5% year-over-year. In November last year, the company introduced the MAX OLED solution, a patented OLED pixel architecture and revolutionary display manufacturing technology designed to bring the superior OLED displays found in high-end smartphones to tablets, PCs and eventually TVs. The integrated system combines the OLED deposition and encapsulation technologies needed to mass-produce superior OLED displays.
6. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 74
QUALCOMM Incorporated (NASDAQ:QCOM) engages in the development and commercialization of foundational technologies for the wireless industry. In January, the company announced a host of industry-leading AI innovations at CES 2025, showcasing how the company is driving the transformation of user experiences across diverse device categories, including PCs, automobiles, smart homes and enterprises. The company also unveiled the Snapdragon X platform, the latest addition to its Snapdragon X Series. It offers exceptional performance, long-lasting battery life, and AI innovations for a wider range of Windows devices. Qualcomm Technologies also showcased the continued traction of the Snapdragon X Series, with over 60 designs in production or development and more than 100 expected by 2026.
5. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 107
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. The company’s solid financial performance in the report for the fourth quarter of 2024 is driven by improved margins and income growth. For instance, on a non-GAAP basis, the gross margin was 54%, operating income was $1.7 billion, net income was $1.5 billion, and diluted earnings per share was $0.92. In January, the company announced the first Dell commercial PCs powered by AMD Ryzen AI PRO Processors. These new PCs mark a significant milestone in the strategic collaboration between AMD and Dell as they represent the next frontier in computing, transforming how people work, create and connect. The company is further introducing new Ryzen AI 300 Series processors to join the Ryzen AI 300 Series family and enable premium AI experiences across notebooks.
4. Micron Technology (NASDAQ:MU)
Number of Hedge Fund Holders: 128
Micron Technology (NASDAQ:MU) makes and sells memory and storage products. In the earnings of the fourth quarter of 2024, Micron delivered 93% year-over-year revenue growth, as robust AI demand drove a strong ramp of the company’s data center DRAM (Dynamic Random-Access Memory) products and industry-leading high bandwidth memory. In January, the company expanded its consumer memory and storage portfolio with the launch of the high-speed Crucial P510 SSD. This new SSD features impressive read and write speeds of up to 11,000 MB/s and 9,550 MB/s, respectively, delivering next-generation Gen5 performance to a wider audience.
3. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 130
Broadcom Inc. (NASDAQ:AVGO) supplies semiconductor infrastructure software solutions. In fiscal year 2024, adjusted EBITDA increased 37% year-over-year to a record $31.9 billion, and free cash flow excluding restructuring was $21.9 billion. In January, the company announced the first-ever innovative Emulex Secure Fibre Channel Host Bus Adapters (HBA) — a cost-effective, easy-to-manage solution that encrypts all data as it moves between servers and storage. The Emulex Secure Host Bus Adapter would meet the needs by providing an elegantly simple solution that, once installed, encrypts all data across all applications.
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 158
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) makes and sells integrated circuits and semiconductors. In the earnings of the fourth quarter of 2024, the company reported a net revenue of NT$868.46 billion, representing a 39% increase from the previous year. Reuters reported in January that the company has begun producing advanced 4-nanometer (nm) chips for US customers in Arizona. In November, the US government had finalized a $6.6 billion grant to TSM’s US unit for semiconductor production in Phoenix, Arizona. Latest reports suggest that the company plans to build a 1 nm process fab in southern Taiwan.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA) operates as a visual computing firm. JP Morgan recently reiterated its Overweight rating on Nvidia, noting that past innovation cycles suggest that efficiency and technology improvements drive further adoption and innovation. Analysts led by Harlan Sur said that after the launch of the DeepSeek R1 large language model last week, investors were concerned regarding the intermediate and long-term effects for AI semiconductor spending given the Chinese startup’s claim regarding their compute efficiency in terms of cost and performance for training/inferencing AI models. However, the analysts noted that despite the impressive cost efficiency of DeepSeek’s training and inference, several questions remain unanswered, including the complete training costs for R1 and the extent of reliance on larger open-source foundation models developed earlier.
While we acknowledge the potential of NVIDIA Corporation (NASDAQ:NVDA) as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than NVIDIA Corporation (NASDAQ:NVDA) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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