5 Best Semiconductor Stocks to Buy Now

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 252

Amazon.com, Inc. (NASDAQ:AMZN) is one of the world’s largest electronic commerce retailers and since being set up in the late 1990s, it has expanded its business to now offer gadgets, cloud computing solutions, and even satellite internet.

Amazon.com, Inc. (NASDAQ:AMZN) designs its own chips for datacenter services for its Amazon Web Services division. These chips are developed under the Graviton lineup and they are designed through British design house Arm Ltd’s microarchitecture. The latest Graviton chip, Graviton2, is built on the Taiwan Semiconductor Manufacturing Company’s (NYSE:TSM) 7nm manufacturing process and is made up of 30 billion transistors – making it one of the most advanced chips in the world.

Out of the 895 hedge funds polled by Insider Monkey for their holdings covering this year’s second quarter, 252 had bought Amazon.com, Inc. (NASDAQ:AMZN)’s shares.

Amazon.com, Inc. (NASDAQ:AMZN)’s largest investor in our database is Ken Fisher’s Fisher Asset Management which owns 48.6 million shares that are worth $5.2 billion.

Baron Funds mentioned the company in its Q2 2022 investor letter and stated that:

“Amazon.com, Inc. (NASDAQ:AMZN) is the world’s largest retailer and cloud services provider. Shares of Amazon declined 35% in the quarter due to weaker-than-expected profits resulting from an overcapacity of resources coming out of COVID. We expect Amazon to grow into its retail capacity in the quarters to come, which would enable it to improve profitability accordingly. Amazon remains one of our largest holdings due to its durable competitive advantages with a leading position in multiple trillion-dollar markets with a long runway for growth.

According to the U.S. Census Bureau, domestic e-commerce was only 14.3% of retail as of the first quarter of 2022. Internationally, the opportunity is even earlier as Amazon has still less than 2% market share of international retail spending. Its advertising share is roughly 3% and growing, underpinned by its structural closed loop, which enables accurate targeting and measurement.

Lastly, Amazon Web Services or AWS, remains the leading cloud provider, while cloud computing still represents only 9.5% out of the $4.3 trillion of global IT spending according to Gartner. Areas such as logistics and health care present additional optionality.”

Disclosure: None. You can also take a look at 10 Best Websites To Research Stocks and Top 10 Technology Stocks to Buy According to Billionaire Cliff Asness.

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