In this piece, we will take a look at the five best semiconductor stocks to invest in according to Ken Griffin’s Citadel Investment Group. If you want to learn more about the $489 billion hedge fund and its billionaire founder, then head on to 10 Best Semiconductor Stocks to Invest in According to Ken Griffin’s Citadel Investment Group.
5. QUALCOMM Incorporated (NASDAQ:QCOM)
Citadel Investment Group’s Stake Value: $301 million
Percentage of Citadel Investment Group’s 13F Portfolio: 0.06%
Number of Hedge Fund Holders: 76
QUALCOMM Incorporated (NASDAQ:QCOM) is an American company known for its network and smartphone products. These are used to power devices such as smartphones and routers, alongside other communications equipment.
Citadel Investment Group owned 1.6 million QUALCOMM Incorporated (NASDAQ:QCOM) shares during the fourth quarter of last year, in a $301 million stake which represented 0.06% of its portfolio. During the same time period, 76 of the 924 hedge funds polled by Insider Monkey also held the company’s shares.
By the end of its fiscal Q1, QUALCOMM Incorporated (NASDAQ:QCOM) had reported $10.7 billion in revenue and $3.23 in non-GAAP EPS, which let it beat analyst estimates for both. In a big announcement, BWM revealed in March 2022 that had entered into a partnership with QUALCOMM Incorporated (NASDAQ:QCOM) for developing automated driving assistance platforms.
QUALCOMM Incorporated (NASDAQ:QCOM)’s largest investor is Panayotis Takis Sparaggis’ Alkeon Capital Management which owns 5.3 million shares worth $970 million.
4. Micron Technology, Inc. (NASDAQ:MU)
Citadel Investment Group’s Stake Value: $307 million
Percentage of Citadel Investment Group’s 13F Portfolio: 0.06%
Number of Hedge Fund Holders: 83
Micron Technology, Inc. (NASDAQ:MU) is a semiconductor company that specializes in developing memory products. These are semiconductors that aid primary chips such as a central processing unit (CPU) or a graphics processing unit (GPU) for conducting their workloads in a system.
As its fourth fiscal quarter ended, Micron Technology, Inc. (NASDAQ:MU) had raked in $7.69 billion in revenue and $2.16 in non-GAAP EPS, beating analyst estimates for both. Citi kept a $120 price target for the company in February 2022, outlining that memory prices will increase in the second half of this year and spell into a positive catalyst for the company.
Mr. Griffin’s investment firm had a $307 million stake in Micron Technology, Inc. (NASDAQ:MU) during Q4 2021. This came through owning 3.3 million shares and it represented 0.06% of the firm’s investment portfolio. During the same time period, 83 out of the 924 hedge funds polled by Insider Monkey also owned the company’s shares.
Micron Technology, Inc. (NASDAQ:MU)’s largest investor is Paul Marshall and Ian Wace’s Marshall Wace LLP. It has a stake of $507 million via 5.4 million shares.
Hazelton Capital Partners mentioned Micron Technology, Inc. (NASDAQ:MU) in its Q3 2021 investor letter. Here is what the firm said:
“It’s hard to explain how shares of Micron Technology, manufacture of DRAM and NAND semiconductor chips, can fall during a global chip shortage. In most industries, focusing on demand can give you a clear insight into what lays ahead for a company. Today, the memory and storage chip industry is no different. However, in the past, companies focused on market share led to the reckless build out of chip fabrication plants (FABs), oversupply, falling average selling prices (ASPs) of memory and storage chips, lower margins, and declining cash flows. As the industry consolidated – there are now just 3 major producers of DRAM and 5 on the NAND side – rational behavior among the key players began to take hold as competitors began focusing more on R&D. Currently, chip pricing remains cyclical although less so than in the past and that cyclicality has a long-term upward bias. The ongoing transition to newer and more robust platforms (3D 176-layer NAND & 1-Alpha node DRAM) has provided the memory and storage chip industry with improved supply capacity under its current manufacturing footprint, ultimately pressuring ASPs. Over the past three years, as most of the large platform conversions have already taken place, being able to add more bits per wafer has reached a saturation point. With no major FAB build outs planned in the near-term by competitors Samsung or SK Hynix, constrained supply and flattening cost curves should lead to durable and upward sloping ASPs once the recent volatility from the chip shortage subsides.
Currently Micron Technology trades at just 8x 2022 estimate earnings. MU is expecting growth in both DRAM and NAND not just from the supply of more chips to data centers, artificial intelligence, the auto sector, and mobile devices, but also from greater demand for gigabyte capacity per unit within those segments. With a healthy balance sheet, improving return on invested capital, and expanding cash flows, not only should Micron benefit from improving future earnings but its multiple should also reflect the transition to a flattening cost curve.”
3. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Citadel Investment Group’s Stake Value: $343 million
Percentage of Citadel Investment Group’s 13F Portfolio: 0.07%
Number of Hedge Fund Holders: 70
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor firm that has risen to fame over recent years after a remarkable turnaround spearheaded by its chief executive officer Dr. Lisa Su. The company has rapidly gained market share in the central processing unit (CPU) and graphics processing unit (GPU) industries through strong designs and the latest manufacturing technologies courtesy of its primary manufacturing partner.
Citadel Investment had a $343 million stake in Advanced Micro Devices, Inc. (NASDAQ:AMD) during Q4 2021, via 2.3 million shares. An Insider Monkey survey of 924 hedge funds for the same time period outlined that 70 had holdings in the company.
For its fiscal Q4, Advanced Micro Devices, Inc. (NASDAQ:AMD) posted $4.8 billion in revenue and $0.92 in non-GAAP EPS, in a stellar set of results that saw massive growth and beat analyst estimates across the board. Daiwa raised the company’s price target to $150 from $140 in February 2022, outlining that its research has revealed healthy orders for the company’s products in the enterprise segment.
Ken Fisher’s Fisher Asset Management is Advanced Micro Devices, Inc. (NASDAQ:AMD)’s largest shareholder according to Insider Monkey’s research through a $2.8 billion stake that comes via 19.9 million shares.
Carillon Tower Advisers mentioned Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2021 investor letter, outlining that:
“Advanced Micro Devices (AMD) supplies semiconductor chips for central processing units (CPUs) and graphic processing units (GPUs). The firm has been gaining share against its primary competitor in the datacenter server CPU space, as this rival has been unable to match the design and manufacturing capabilities of AMD and its partners. Investors are also looking forward to the closing of the previously announced merger with a semiconductor manufacturer that is another one of the portfolio’s holdings. The merger will increase AMD’s capabilities in the Field Programmable Gate Array (FPGA) chip space, and the combined company should possess the potential to win additional market share in the datacenter chip market.”
2. Marvell Technology, Inc. (NASDAQ:MRVL)
Citadel Investment Group’s Stake Value: $466 million
Percentage of Citadel Investment Group’s 13F Portfolio: 0.09%
Number of Hedge Fund Holders: 61
Marvell Technology, Inc. (NASDAQ:MRVL) is a chip company offering products such as signals processing devices and applications processors for use in gadgets such as WiFi routers and smartphones.
Marvell Technology, Inc. (NASDAQ:MRVL) earned $1.34 billion in revenue and $0.50 in non-GAAP EPS for its fiscal fourth quarter, beating analyst estimates for both. 61 out of the 924 hedge funds polled by Insider Monkey during Q4 2021 had owned the company’s shares.
Mr. Griffin’s Citadel Investment owned a $466 million stake in Marvell Technology, Inc. (NASDAQ:MRVL) via 5.3 million shares as the fourth quarter of last year came to an end. After Citadel, which is the company’s largest investor, Marvell Technology, Inc. (NASDAQ:MRVL)’s largest holding belongs to Brian Ashford-Russell and Tim Woolley’s Polar Capital, which owns 3.3 million shares worth $290 million.
Carillon Tower Advisers in its fourth quarter 2021 investor letter mentioned Marvell Technology, Inc. (NASDAQ:MRVL) and stated that:
“Marvell Technology provides infrastructure semiconductor solutions. Investors have recently appreciated the particularly strong growth the company has posted, as it is winning designs in the datacenter server market as well as winning notable contracts in the upcoming 5G wireless infrastructure build-outs. Supply chain issues had hampered growth in 2021 for the company, but with some improvements there recently, we believe Marvell is set to exhibit robust growth in the upcoming year.”
1. NVIDIA Corporation (NASDAQ:NVDA)
Citadel Investment Group’s Stake Value: $697 million
Percentage of Citadel Investment Group’s 13F Portfolio: 0.14%
Number of Hedge Fund Holders: 111
NVIDIA Corporation (NASDAQ:NVDA) is another semiconductor designer that has managed to secure its place at the top of the food chain through strong product performance. The company designs and sells graphics processing units (GPUs) for a wide variety of applications such as video gaming, professional work, enterprise computing, and vehicles.
For its fourth fiscal quarter, NVIDIA Corporation (NASDAQ:NVDA) reported $7.6 billion in revenue and $1.32 in non-GAAP EPS, beating analyst estimates for both. Mizuho raised the company’s price target to $355 from $345 in February 2022, outlining that the company has nothing but growth ahead of it.
Citadel Investment Group owned 2.3 million NVIDIA Corporation (NASDAQ:NVDA) shares which were worth $697 million and represented 0.14% of its portfolio during Q4 2021. Insider Monkey’s survey of 924 hedge funds for the same time period revealed that 111 also had a stake in the company.
NVIDIA Corporation (NASDAQ:NVDA)’s largest investor is Ken Fisher’s Fisher Asset Management with a $1.5 billion stake courtesy of 5.5 million shares suggests Insider Monkey’s research.
In a third quarter 20221 investor letter, Harding Loevner had the following to say about NVIDIA Corporation (NASDAQ:NVDA):
“The proliferation of devices using chips, whether EVs, “things” in lol, or embedded systems more generally, results in the generation of oceans of data potentially needing to be stored, processed, and analyzed. NVIDIA, the leading chip designer wellknown for its graphic processing units and its complementary CUDA software ecosystem, is at the forefront of the effort to provide the analytical platform needed to unlock the full potential of such specialist processors.”
Disclosure: None. You can also take a peek at the 10 Stocks to Buy Now According to Hari Hariharan’s NWI Management and Billionaire Dan Loeb’s Top 10 Stock Picks.
