5 Best Semiconductor Stocks to Buy Now

2. Intel Corporation (NASDAQ: INTC) 

Number of Hedge Fund Holders: 83

Intel Corporation (NASDAQ: INTC) is one of the biggest Silicon Valley companies in the world and deals in the production of semiconductor chips and microprocessors. These microprocessors are used in PCs made by some famous companies like Dell, Lenovo, HP, etc. 

In Q1 2021, Intel Corporation (NASDAQ: INTC) reported a net income of $5.7 billion and EPS of $1.39, beating the market estimate of $1.15. The revenue for the quarter stood at $19.7 billion. The INTS stock has soared by 13.3% in the past six months. Earlier in May, Joseph Moore, an analyst at Morgan Stanley, raised the price target on INTS stock to $72, rating it as ‘Overweight’. 

At the end of Q1 2021, we see that hedge funds are turning bullish on Intel Corporation (NASDAQ: INTC), as 83 funds have stakes in the company, up from 72 in the previous quarter. 

Alger, an investment management firm, recently released its Q1 2021 investor letter and mentioned Intel Corporation (NASDAQ: INTC) and other stocks in it. Here is what the firm has to say: 

“Short exposure to Intel also detracted from performance. Intel designs and manufactures semiconductors for the computing and communications industries. Intel’s proprietary intellectual strength and manufacturing prowess versus the competition is deteriorating, which is causing the company to lose market share and profit opportunities. The short position detracted from portfolio returns as the share price reacted positively to the announcement of Pat Gelsinger being hired as chief executive officer, a stronger-than-anticipated quarterly earnings report driven by unusually robust PC sales that we believe are unsustainable and the unveiling of “Intel Unleashed,” a new long-term program to help improve manufacturing and spur innovation. This program involves opening two fabrication plants in Arizona, which confirms Intel’s commitment to continue as an integrated design manufacturer. Importantly, Intel continues to experience issues with its next generation server chips which are disadvantaging Intel versus the competition.”