5 Best Semiconductor Stocks To Invest In for the AI Boom

In this piece, we will take a look at the five best semiconductor stocks to invest in for the AI boom. If you want to read more about the trillions of dollars that might be in play in the AI market, then read 11 Best Semiconductor Stocks To Invest In for the AI Boom.

5. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Investors In Q4 2023: 91

Broadcom Inc. (NASDAQ:AVGO) is an American semiconductor company that sells connectivity products. The firm scored a big win in February 2024, when after its multi billion dollar acquisition of VMware, Microsoft announced that it would continue to support the platform on its well known Azure platform.

As of Q4 2023 end, 91 out of the 933 hedge funds part of Insider Monkey’s database had bought Broadcom Inc. (NASDAQ:AVGO)’s shares. Ken Fisher’s Fisher Asset Management was the biggest shareholder due to its $2.3 billion stake.

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

Number of Hedge Fund Investors In Q4 2023: 92

Micron Technology, Inc. (NASDAQ:MU) is an American memory semiconductor maker that is one of the most important firms in its industry. The shares are rated Buy on average, and the average analyst share price target is $88.82.

During 2023’s December quarter, 92 out of the 933 hedge funds tracked by Insider Monkey had held a stake in the firm. Micron Technology, Inc. (NASDAQ:MU)’s largest investor among these is Ken Griffin’s Citadel Investment Group as it owns $604 million worth of shares.

3. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Investors In Q4 2023: 105

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the most important artificial intelligence chip stocks since it is the world’s largest contract chip manufacturer. Its importance to the sector was clear during the firm’s fourth quarter earnings call which saw management share that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is leading when it comes to capturing global AI demand.

For their fourth quarter of 2023 shareholdings, 105 out of the 933 hedge funds covered by Insider Monkey’s research were Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s investors. Ken Fisher’s Fisher Asset Management was the biggest shareholder, owning 31 million shares that are worth $3.2 billion.

2. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Investors In Q4 2023: 120

Advanced Micro Devices, Inc. (NASDAQ:AMD) is another unavoidable artificial intelligence stock since it is capable of desiging AI processors, accelerators, and GPUs. This was also clear during its CEO’s AI talk in December 2023, where Dr. Su outlined a multi billion dollar market for her firm’s products.

As of December 2023 end, 120 out of the 933 hedge funds part of Insider Monkey’s database had invested in the firm. Advanced Micro Devices, Inc. (NASDAQ:AMD)’s largest investor among these is Ken Fisher’s Fisher Asset Management due to its $4.1 billion stake.

1. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Investors In Q4 2023: 173

NVIDIA Corporation (NASDAQ:NVDA) is the stock darling of the AI sector. Its importance to the semiconductor sector was clear in February 2024, as ahead of the firm’s fourth quarter earnings release, not only did the media start dubbing NVIDIA Corporation (NASDAQ:NVDA)’s report as the most important of the year, but broader indexes fell due to investor jitters.

173 out of the 933 hedge funds tracked by Insider Monkey had held a stake in NVIDIA Corporation (NASDAQ:NVDA) during Q4 2023. Rajiv Jain’s GQG Partners was the biggest stakeholder as it had invested $6.8 billion in the company.

Disclosure: None. You can also take a look at 12 Best Artificial Intelligence (AI) Stocks To Buy According to Analysts and Best Bail Bond Companies in Each of the 30 Biggest Cities in the US.