In this article, we will take a look at the 5 semiconductor stocks billionaires are loading up on. For more stocks, head on over to 10 Semiconductor Stocks Billionaires Are Loading Up On.
5. Marvell Technology, Inc. (NASDAQ:MRVL)
Number of Billionaire Investors: 17
Dollar Value of Billionaire Holdings: $322,781,760
Number of Hedge Fund Holders: 62
Marvell Technology, Inc. (NASDAQ:MRVL) is a Santa Clara, California-based semiconductor company founded in 1995 that designs and manufactures a wide range of integrated circuits and related products. On May 26, C. J. Muse at Evercore ISI increased the price target on Marvell Technology, Inc. (NASDAQ:MRVL) from $60 to $70 and maintained an Outperform rating on the shares. The analyst noted that the company reported a “modest beat” in Q1 2023 results.
Here’s what Baron Funds said about Marvell Technology, Inc. (NASDAQ:MRVL) in its Q1 2023 investor letter:
“We took advantage of weakness to purchase shares of Marvell Technology, Inc. (NASDAQ:MRVL), a leading supplier of infrastructure semiconductor solutions that enable the rapid and efficient movement of data throughout the broader data economy, from the data center core to the network edge. Through both organic development and acquisitions led by CEO Matt Murphy since he took over in 2016, Marvell has built a portfolio of market-leading products and IP across computing, networking, security, electro-optics, and storage. Consequently, the company is a critical partner for hyperscale cloud service provider, data center, enterprise networking, carrier infrastructure, consumer, and automotive/industrial end-market customers. Marvell is targeting 15% to 20% average revenue growth through the semiconductor cycle in the coming years, largely driven by secular trends and company-specific product innovations within the cloud, 5G, and automotive end markets. We believe Marvell can deliver on or exceed this target because, among other growth opportunities, its market-leading optical products are critical to delivering increasing data transmission speeds required by hyperscale customers in AI training and inference. At the same time, the company is simultaneously ramping up a custom silicon business working directly with hyperscale partners. Given the dislocation in the stock on near-term cyclical concerns, we believe we paid an attractive price for the long-term growth of this industry-leading company.”
4. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Billionaire Investors: 17
Dollar Value of Billionaire Holdings: $2,828,088,576
Number of Hedge Fund Holders: 102
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Hsinchu, Taiwan-based leading global semiconductor company founded in 1987. The company is known for its expertise in manufacturing advanced semiconductor chips and providing foundry services to fabless semiconductor companies.
During an annual meeting in Omaha, Nebraska, on May 6, the Chairman and CEO of Berkshire Hathaway Inc (NYSE:BRK-B) highlighted that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the “best-managed and important companies in the world.” The billionaire hedge fund manager believes that no other semiconductor company comes in close comparison to Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), making it one of the best semiconductor stocks.
Here’s what Wedgewood Partners said about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its Q1 2023 investor letter:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) contributed to performance as revenues grew +27% (in USD) from the year ago quarter. Despite this strength, the Company’s customers have seen near-term weakness in demand due to Covid-19 normalization as well as the launch timing of new products. However, the Company is well-positioned to continue a long-term growth trajectory because its leading-edge capacity is being absorbed by high-performance computing applications, particularly at nontraditional integrated circuit (IC) design houses, such as Apple, Alphabet and Amazon, which have become IC-design powerhouses over the past decade. Importantly, the Company’s aggressive investment in leading-edge equipment, tight development with fabless IC designers, and embrace of open development libraries, should continue to foster a superior competitive position and attractive long-term growth.”
3. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Billionaire Investors: 19
Dollar Value of Billionaire Holdings: $804,976,537
Number of Hedge Fund Holders: 84
Applied Materials, Inc. (NASDAQ:AMAT) is a Santa Clara, California-based global leader in materials engineering solutions for the semiconductor industry.
On May 19, C. J. Muse at Evercore ISI increased the price target on Applied Materials, Inc. (NASDAQ:AMAT) from $125 to $135 and maintained an Outperform rating on the stock. The investment firm anticipates Applied Materials, Inc.’s (NASDAQ:AMAT) EPS to rise to $7.50 in 2024 as compared to the Street’s forecast of $6.87.
Here’s what Vulcan Value Partners said about Applied Materials, Inc. (NASDAQ:AMAT) in its Q1 2023 investor letter:
“Applied Materials, Inc. (NASDAQ:AMAT) was a material contributor during the quarter. Despite a difficult environment, equipment revenue increased double digits. The company’s growth was supported by a nearly $20 billion backlog and strength in their lagging edge portfolio, driven by growth in semiconductor content for automotive, communications, sensors, and Internet of Things (IoT) end markets. Applied Materials also announced the promising new Centura Sculpa patterning system. This equipment will allow its customers to reduce their reliance on expensive EUV “double patterning”, which we believe will allow Applied Materials to gain share of the overall wafer fab equipment market. While we expect 2023 will be a down year for semiconductor capital equipment, we expect Applied Materials to return to growth in 2024. Overall, we feel positive about the company’s long-term outlook.”
2. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Billionaire Investors: 19
Dollar Value of Billionaire Holdings: $1,663,103,326
Number of Hedge Fund Holders: 91
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a Santa Clara, California-based semiconductor company founded in 1969. The company is known for designing and manufacturing a range of computer processors and related technologies.
In a note issued to investors on May 3 following the Q1 2023 results, Christian Schwab at Craig-Hallum upgraded Advanced Micro Devices, Inc. (NASDAQ:AMD) stock from a Hold to a Buy rating and increased the target price from $76 to $100. The analyst anticipates double-digit growth from the PC segment in 2024 and thinks that Advanced Micro Devices, Inc. (NASDAQ:AMD) can emerge as a big winner in the AI space.
Horizon Kinetics LLC shared its stance on Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q1 2023 investor letter. Here’s what the firm said:
“It is among what are considered to be the great technology companies, like Advanced Micro Devices, Inc. (NASDAQ:AMD) and Intel, that one is apt to see some of the greatest confusion between short-term financial results and share price movements, on the one hand, and long-term financial results. The former are exceedingly difficult to predict. Long term results are relatively easy to predict, because they are bound by the limiting realities of the business model. In the case of AMD, that is the business of being a large-scale semi-conductor manufacturer with a more dominant competitor that has a scale economy advantage.
Here’s what people see, remember and act upon. In the past several years, AMD has been the best performing major technology stock. It’s outperformed Apple, Amazon, Google, Meta (Facebook) and Nvidia…” (Click here to read the full text)
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Billionaire Investors: 22
Dollar Value of Billionaire Holdings: $4,560,858,701
Number of Hedge Fund Holders: 132
NVIDIA Corporation (NASDAQ:NVDA) is a Santa Clara, California-based global technology company that specializes in the designing and manufacturing of graphics processing units (GPUs), system-on-chips (SoCs), and other related technologies. The company is best known for its GPUs, which are used in a variety of applications such as gaming, professional visualization, artificial intelligence (AI), data centres, and autonomous vehicles. NVIDIA Corporation (NASDAQ:NVDA) has secured first place on our list of the best semiconductor stocks billionaires are loading up on.
The company achieved a $1 trillion market capitalization during trading on May 30. Only four other US companies, namely Apple Inc. (NASDAQ:AAPL), Alphabet Inc. (NASDAQ:GOOGL), Microsoft Corporation (NASDAQ:MSFT) and Amazon.com, Inc. (NASDAQ:AMZN), have a valuation of more than $1 trillion. NVIDIA Corporation (NASDAQ:NVDA) stock has seen a year-to-date (YTD) gain of over 175% as the company is betting on the AI revolution that is resulting in record sales for the corporation.
Here’s what Polen Capital said about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2023 investor letter:
“Not owning Apple and NVIDIA Corporation (NASDAQ:NVDA) detracted from our relative performance. With respect to Apple, we have not felt that the combination of growth available and the valuation made for one of our best ideas. Concerning NVIDIA, while there seems to be strong demand for data center chips, the valuation and lack of clarity around pace and magnitude of that growth has kept us at bay to date.”
Disclosure: None. You can also take a look at 10 Best June Dividend Stocks To Buy and 12 Best Software Infrastructure Stocks to Buy.
