In this article, we discuss the 5 best 5G stocks to buy according to hedge funds. If you want to read our detailed analysis of these stocks, go directly to the 11 Best 5G Stocks To Buy According To Hedge Funds.
5. Verizon Communications Inc. (NYSE:VZ)
Number of Hedge Fund Holders: 63
Verizon Communications Inc. (NYSE:VZ) is placed fifth on our list of 11 best 5G stocks to buy according to hedge funds. The firm operates as a communications and technology firm. It is headquartered in New York.
On July 22, investment advisory Cowen kept an Outperform rating on Verizon Communications Inc. (NYSE: VZ) stock and raised the price target to $68 from $66, noting that the firm was one of the best defensive value names on the market.
At the end of the second quarter of 2021, 63 hedge funds in the database of Insider Monkey held stakes worth $10.9 billion in Verizon Communications Inc. (NYSE:VZ).
In its Q1 2021 investor letter, Miller/Howard Investments, an asset management firm, highlighted a few stocks and Verizon Communications Inc. (NYSE:VZ) was one of them. Here is what the fund said:
“We sold Verizon (VZ) based on concerns over how much they might spend in ongoing spectrum auctions. Management may legitimately view spending billions of dollars to expand their spectrum holdings as necessary, but we believe the payoff will be slow and will make it challenging to grow the dividend at a good pace.”
4. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 78
Intel Corporation (NASDAQ:INTC) is a California-based firm that sells essential technologies for smart devices. It is ranked fourth on our list of 11 best 5G stocks to buy according to hedge funds.
On October 6, investment advisory Morgan Stanley maintained an Overweight rating on Intel Corporation (NASDAQ:INTC) stock but lowered the price target to $67 from $70, underlining greater headwinds for the firm in the near-term.
At the end of the second quarter of 2021, 78 hedge funds in the database of Insider Monkey held stakes worth $6.7 billion in Intel Corporation (NASDAQ:INTC).
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 86
NVIDIA Corporation (NASDAQ:NVDA) is a California-based visual computing company. It is placed third on our list of 11 best 5G stocks to buy according to hedge funds.
On October 5, investment advisory KeyBanc reiterated an Overweight rating on NVIDIA Corporation (NASDAQ:NVDA) stock and raised the price target to $260 from $245. John Vinh, an analyst at the advisory, issued the ratings update.
At the end of the second quarter of 2021, 86 hedge funds in the database of Insider Monkey held stakes worth $9 billion in NVIDIA Corporation (NASDAQ:NVDA), up from 80 the preceding quarter worth $6 billion.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:
“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. We previously owned NVIDIA and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA to the portfolio.”
2. Micron Technology (NASDAQ:MU)
Number of Hedge Fund Holders: 87
Micron Technology (NASDAQ:MU) is ranked second on our list of 11 best 5G stocks to buy according to hedge funds. The firm makes and sells memory and storage products. It operates from Idaho.
On September 29, investment advisory Morgan Stanley maintained an Overweight rating on Micron Technology (NASDAQ:MU) stock with a price target of $100, noting that the overall demand for the products of the firm was still healthy.
At the end of the second quarter of 2021, 87 hedge funds in the database of Insider Monkey held stakes worth $6.3 billion in Micron Technology (NASDAQ:MU).
In its Q1 2021 investor letter, Bonsai Partners, an asset management firm, highlighted a few stocks and Micron Technology (NASDAQ:MU) was one of them. Here is what the fund said:
“Micron is a manufacturer of memory semiconductor chips. Micron appreciated 17.3% during the quarter.
With the semiconductor cycle in full swing, sentiment continued to improve for major DRAM and NAND suppliers. Spot pricing for DRAM continues its upward march due to supply shocks across the industry and sustained demand levels that continue to outstrip supply.
As a result, Micron showed improving results for the fiscal first quarter, raised guidance intra-quarter for the fiscal second quarter, and offered strong guidance for the fiscal third quarter in both growth and margins.
While the cyclical nature of DRAM hasn’t changed, the cycles themselves continue to become more benign, leading to long-term economic improvement across these businesses. Micron is now continuously profitable, with industry players in a dramatically stronger position than even just five years ago.
The biggest negative surprise in the quarter came from Micron’s exit from its 3D XPoint hybrid memory business. The company also announced its decision to sell its accompanying Utah fab. Fortunately, this development does not alter the investment thesis much since 3D XPoint was an option ticket for future growth. While it’s unfortunate this product didn’t pan out, now is an excellent time to sell a fab, so perhaps it is a blessing in disguise?”
1. T-Mobile US, Inc. (NASDAQ:TMUS)
Number of Hedge Fund Holders: 100
T-Mobile US, Inc. (NASDAQ:TMUS) is placed first on our list of 11 best 5G stocks to buy according to hedge funds. The firm operates in the wireless communications services business. It is headquartered in Washington.
On September 20, investment advisory Loop Capital initiated coverage of T-Mobile US, Inc. (NASDAQ:TMUS) stock with a Buy rating and a price target of $160. Stephan Bisson, an analyst at the advisory, issued the ratings update.
Out of the hedge funds being tracked by Insider Monkey, Greenwich-based investment firm Viking Global is a leading shareholder in T-Mobile US, Inc. (NASDAQ:TMUS) with 7.5 million shares worth more than $1 billion.
You can also take a peek at 10 Best EV Stocks To Buy Now and 10 Best EV Startups to Watch.
