5 Best Semiconductor Stocks To Invest In Right Now

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1. Intel Corporation (NASDAQ: INTC)

Number of Hedge Fund Holders: 83

Topping the list of 12 best semiconductor stocks to invest in right now is American chipmaker Intel Corporation (NASDAQ: INTC). The California-based semiconductor company sells processors, chipsets, graphics, storage, wireless, and ethernet products worldwide. Starting April 2021, Intel Corporation (NASDAQ: INTC) is broadening its cutting-edge technology by partnering with MILA, a Montreal-based AI research institute, to develop and use artificial intelligence technologies for improving drug discovery. Intel Corporation (NASDAQ: INTC) currently pays an annualized dividend of $1.39 per share and offers a dividend yield of 2.60%.

In July, The Wall Street Journal reported that Intel Corporation (NASDAQ: INTC) was in talks to buy California-based chip foundry GlobalFoundries for $30 billion, which would be the chipmaker’s largest acquisition, if it goes through. On July 27, Needham analyst Quinn Bolton kept a Buy rating on Intel Corporation (NASDAQ: INTC) with a $70 price target. Shares of Intel Corporation (NASDAQ: INTC) jumped 7%, year to date.

The company has a market cap of $217 billion. In the second quarter of 2021, Intel Corporation (NASDAQ: INTC) reported an EPS of $1.24, beating estimates by $0.19. The company’s second-quarter revenue came in at $18.5 billion, up 2% year over year.

At the end of the first quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $7.61 billion in Intel Corporation (NASDAQ: INTC), up from 72 in the previous quarter worth $5.57 billion.

In its Q1 2021 investor letter, Alger Spectra Fund mentioned Intel Corporation (NASDAQ: INTC) and shared their insights on the company. Here is what the fund said:

“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.”

You can also take a peek at the Forget Tesla (TSLA): 10 Cheap EV Stocks to Buy Now and 10 Communication Services Stocks that Pay Dividends.

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