5 Best Semiconductor Stocks to Buy Now

1. Micron Technology, Inc. (NASDAQ: MU) 

Number of Hedge Fund Holders: 100

Micron Technology, Inc. (NASDAQ: MU) tops our list of the best semiconductor stocks to buy now. It is an American technology company that deals in memory and storage products produced for a wide range of applications. The company has operations in over 17 countries with 13 manufacturing sites. 

In Q3 FY 21, Micron Technology, Inc. (NASDAQ: MU) reported a net income of $2.17 billion and revenue of $7.4 billion, up from $5.4 billion during the same period last year. The EPS beat the market estimate by $0.16 and stood at $1.88. The MU stock has soared by 57.7% in the past year. In June, BMO upgraded the MU stock to ‘Outperform’ and raised the price target on the stock to $110. The stock has delivered a 61.1% return in the past year. 

At the end of Q1 2021, 100 hedge funds have positions in Micron Technology, Inc. (NASDAQ: MU), worth $7.6 billion. Arrowstreet Capital is the biggest shareholder in the company, with 14.7 million shares, worth $1.2 billion.  

Bonsai Partners recently released its first-quarter 2021 investor letter and mentioned Micron Technology, Inc. (NASDAQ: MU) in it. Here is what the firm has to say: 

“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?”

You can also take a peek at 15 Best Undervalued Stocks to Buy Now and 10 Best Mid-Cap Stocks To Buy Now.

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