5 Cheap Semiconductor Stocks To Buy Now

In this article, we will take a look at the 5 cheap semiconductor stocks to buy now. If you want to explore similar stocks, you can also read 10 Cheap Semiconductor Stocks To Buy Now.

5. Skyworks Solutions, Inc. (NASDAQ:SWKS)

PE Ratio as of January 3: 11.69

Number of Hedge Fund Holders: 39

Skyworks Solutions, Inc. (NASDAQ:SWKS) is a leading provider of analog and mixed-signal semiconductors. The company’s products are used in a variety of end markets including aerospace, automotive, broadband, cellular infrastructure, connected homes, entertainment & gaming, industrial, medical, military, and consumer electronics. Skyworks Solutions, Inc. (NASDAQ:SWKS) is one of the best cheap semiconductor stocks to buy now and is trading at a PE multiple of 11x, as of January 3.

On November 30, KGI Securities analyst Derek Chang upgraded Skyworks Solutions, Inc. (NASDAQ:SWKS) to Outperform from Neutral and maintained his $130 price target on the shares.

Skyworks Solutions, Inc. (NASDAQ:SWKS) is a cash-rich company that is also paying out a solid dividend to shareholders. As of January 3, the company is offering a forward dividend yield of 2.72% and has free cash flows of $914.9 million.

At the end of Q3 2022, 39 hedge funds held stakes in Skyworks Solutions, Inc. (NASDAQ:SWKS). The total value of these stakes was estimated at $963.8 million. As of September 30, Millennium Management is the dominant investor in the company and has a position worth $142.4 million.

Here is what Heartland Advisors had to say about Skyworks Solutions, Inc. (NASDAQ:SWKS) in its third-quarter 2022 investor letter:

“Before the risk-on rebound early in the quarter, we were searching for opportunities to shift from our defensive stance, looking for beaten-down, high-quality “early cycle” leaders. Existing holding, Skyworks Solutions, Inc. (NASDAQ:SWKS), represents one such opportunity that was added to on weakness.

Skyworks is one of two leading providers of radio frequency system components to smartphone makers and electronics manufacturers. With every step-up in product complexity, over the past two decades, the competitive landscape has shrunk while gross margins have increased significantly. 5G represents another such step-up, which is likely to increase how much Skyworks can make per smartphone.

Apple is a big customer, accounting for more than half of Skyworks’ sales. That customer concentration has depressed Skyworks’ valuation over time. More recently, fears surrounding a global recession and risk to consumer demand have further pressured valuation. However, the handset business is expected to benefit from 5G content, which may help offset some macroeconomic pressures. Away from the handset business, Skyworks’ growth is expected to accelerate thanks to other secular drivers such as WIFI 6 and growth of the industrial internet (i.e., “Internet of Things”).

At a P/E of less than eight and a 2.3% dividend yield, SWKS rarely gets this cheap, making this high-quality stock compelling for longterm investors.”

4. Intel Corporation (NASDAQ:INTC)

PE Ratio as of January 3: 8.15

Number of Hedge Fund Holders: 69

Intel Corporation (NASDAQ:INTC) has suffered in 2022, however, the blue chip is offering investors a chance to rack up shares into weakness. As of January 3, Intel Corporation (NASDAQ:INTC) has a trailing twelve-month PE ratio of 8.15 and is one of the best cheap semiconductor stocks to buy now.

On January 3, Intel Corporation (NASDAQ:INTC) unveiled its 13th Generation Intel Core mobile processors. Intel Corporation (NASDAQ:INTC) has a strong market position and is well-positioned to benefit from the long-term growth trends in the technology sector. This includes the growth of cloud computing, the Internet of Things, 5G networks, and artificial intelligence. Moreover, the company pays its shareholders to wait, and is offering a forward dividend yield of 5.52%, as of January 3.

On November 22, Mizuho analyst Vijay Rakesh reinstated coverage of Intel Corporation (NASDAQ:INTC) with a Neutral rating and a $32 price target.

At the close of the third quarter of 2022, Intel Corporation (NASDAQ:INTC) was held by 69 hedge funds. The collective stakes of these hedge funds amounted to $1.91 billion. As of September 30, Two Sigma Advisors is the largest shareholder in Intel Corporation (NASDAQ:INTC) with a stake worth $390.4 million.

Here is what ClearBridge Investments had to say about Intel Corporation (NASDAQ:INTC) in its third-quarter 2022 investor letter:

“Also on the detractor side, Intel Corporation (NASDAQ:INTC) delivered a disappointing revenue miss and lowered full-year revenue and earnings guidance as COVID-19-driven demand for PCs abated (where Intel enjoys half its sales) and a delay in its flagship Sapphire Rapids CPU hurt its data center business. Despite these issues, we still believe Intel is an economically sensitive turnaround story with substantial upside.”

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

PE Ratio as of January 3: 9.06

Number of Hedge Fund Holders: 74

Micron Technology, Inc. (NASDAQ:MU), the leader in DRAM technology, has pulled back significantly. As of January 3, the stock is trading at a PE multiple of 9x and is offering investors an attractive buying opportunity. Micron Technology, Inc. (NASDAQ:MU) is placed third among the best cheap semiconductor stocks to buy now.

On December 22, JPMorgan analyst Harlan Sur maintained an Overweight rating and his $65 price target on Micron Technology, Inc. (NASDAQ:MU).

Micron Technology, Inc. (NASDAQ:MU) was held by 74 hedge funds at the end of Q3 2022. The total stakes of these hedge funds amounted to $2.50 billion. As of September 30, Jim Simons’ Renaissance Technologies is the top shareholder in Micron Technology, Inc. (NASDAQ:MU) and has a position worth $374 million in the company.

Here is what Claret Asset Management had to say about Micron Technology, Inc. (NASDAQ:MU) in its third-quarter 2022 investor letter:

“Inflation is still higher than interest rates… not an incentive to save for most people. Either inflation must come down or interest rates have to go up further. Or both. And probably both. Now that they are taking the punch bowl away and the party is over, what happens next? For whatever reason, the stock market seems to always precede the economic reality: Micron reached a high of $98.45 on January 5th, 2022 and is trading at $50.00 today.”

2. QUALCOMM, Incorporated (NASDAQ:QCOM)

PE Ratio as of January 3: 9.62

Number of Hedge Fund Holders: 80

QUALCOMM, Incorporated (NASDAQ:QCOM) has a strong competitive position in the wireless technology industry, robust growth opportunities, and attractive financials. The company is a leading provider of 3G, 4G, and 5G wireless technologies, which allows it to benefit from the growing demand for wireless communication and data services. The company is also well-positioned to benefit from the increasing demand for connected devices, such as smartphones, tablets, and wearables.

The good news for investors is that this innovative company is currently trading at bargain levels and is therefore one of the best cheap semiconductor stocks to buy now. As of January 3, QUALCOMM, Incorporated (NASDAQ:QCOM) is trading at a PE ratio of 9.62 and is offering a forward dividend yield of 2.73%.

On December 20, JPMorgan analyst Samik Chatterjee revised his price target on QUALCOMM Incorporated (NASDAQ:QCOM) to $160 from $185 and maintained an Overweight rating on the shares.

At the end of the third quarter of 2022, 80 hedge funds were long QUALCOMM, Incorporated (NASDAQ:QCOM) and disclosed positions worth $2.56 billion in the company. Of those, Matrix Capital Management was the largest shareholder in the company with a position worth $377 million.

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

PE Ratio as of January 3: 13.36

Number of Hedge Fund Holders: 87

Taiwan Semiconductor Manufacturing Company (NYSE:TSM) is one of the world‘s leading integrated circuit foundries, with a strong competitive advantage in technology, capacity, and scale. With a strong research and development team and state–of–the–art fabrication processes, the company has a significant edge over its competitors in producing advanced semiconductor chips. Taiwan Semiconductor Manufacturing Company (NYSE:TSM) was held by 87 hedge funds at the end of the third quarter of 2022. The total stakes of these hedge funds amounted to $13.23 billion.

Taiwan Semiconductor Manufacturing Company (NYSE:TSM) is offering investors an opportunity to rack up shares into weakness. As of January 3, Taiwan Semiconductor Manufacturing Company (NYSE:TSM) has a PE ratio of 13.36. The stock is placed high on our list of the best cheap semiconductor stocks to buy now.

On November 18, Erste Group analyst Hans Engel upgraded Taiwan Semiconductor Manufacturing Company (NYSE:TSM) to Buy from Hold.

As of September 30, Warren Buffett’s Berkshire Hathaway is the dominant investor in Taiwan Semiconductor Manufacturing Company (NYSE:TSM) and has disclosed a position worth $4.17 billion in the company.

Here is what Ron Baron’s Baron Funds had to say about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its third-quarter 2022 investor letter:

“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) detracted from performance due to the global macroeconomic slowdown and softening demand for consumer electronics. We retain conviction that Taiwan Semi’s technological leadership, pricing power, and exposure to secular growth markets, including high-performance computing, automotive, and IoT, will allow the company to deliver strong revenue growth over the next several years.”

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