In this article, we will be taking a look at 5 semiconductor stocks popular among elite hedge funds. To read our detailed analysis of the semiconductor sector, you can go directly to see the 10 Semiconductor Stocks Popular Among Elite Hedge Funds.
5. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 76
Intel Corporation (NASDAQ:INTC) is a leading information technology and semiconductor company that designs and manufactures computer products and technologies. The company offers platform products, system-on-chip and multichip packages, and non-platform or adjacent products such as accelerators, boards, and systems.
Deutsche Bank’s Ross Seymore has a Hold rating on Intel Corporation (NASDAQ:INTC) shares, alongside a $45 price target, as of this July.
In July, SL investments, an alternative investment fund manager, offered a bullish analysis of Intel Corporation (NASDAQ:INTC). The firm sees a successful turnaround for the company and believes the currently low valuation of the company’s shares is a buying opportunity for investors. This raises the popularity of the stock among major institutional investors.
As of the first quarter, 76 hedge funds held stakes in Intel Corporation (NASDAQ:INTC). Their total stake value was $3.2 billion.
Baron Funds, an asset management firm, mentioned Intel Corporation (NASDAQ:INTC) in its first-quarter 2022 investor letter. Here’s what they said:
“Intel’s (NASDAQ:INTC) capital spending process is guided by a process they appropriately named “copy exactly.” This means that they attempt to “copy exactly” what they have already built and attempt to improve tried and true processes iteratively.”
4. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 78
Micron Technology, Inc. (NASDAQ:MU) manufactures memory and storage products for sale worldwide. It offers dynamic random access memory semiconductor devices with low latency that provide high-speed data retrieval, among other related products.
Christopher Danely at Citi holds a Buy rating and an $80 price target on Micron Technology, Inc. (NASDAQ:MU) shares as of this July.
In July, UBS listed a number of information technology stocks on its top conviction list, including Micron Technology, Inc. (NASDAQ:MU). Citigroup also cited an attractive valuation for the stock earlier the same month, improving its popularity among major hedge funds. In the third quarter of 2022, the company had an EPS of $2.6, breaking estimates by $0.2. Its revenue was $8.6 billion, beating the previous quarter’s revenue of $7.8 billion.
Micron Technology, Inc. (NASDAQ:MU) had 78 hedge funds holding stakes in it in the first quarter of 2022, with a total stake value of $3.4 billion. In comparison, 83 hedge funds were long the stock in the previous quarter, with a total stake value of $5.5 billion.
3. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 81
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a manufacturer of integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the US, and internationally. The company provides complementary metal oxide silicon wafer fabrication processes to manufacture logic, mixed-signal, radio frequency, and embedded memory semiconductors.
Roland Shu, a Citi analyst, holds a Buy rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) shares as of this July.
The company’s EPS in the second quarter of 2022 was $1.6, beating estimates by $0.1. Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) revenue was $17.8 billion, also beating estimates by $327.2 million. Analyst Shu also believes that there is an upside to consensus estimates on the company’s earnings in the latter half of this year and 2023 due to Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) strong share gains. Such positive earnings and coverage has attracted many elite hedge funds in the first quarter.
Out of 912 hedge funds, 81 hedge funds were long Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in the first quarter. Their total stake value was $10.2 billion.
Wedgewood Partners, an investment management firm, mentioned Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its second-quarter 2022 investor letter. Here’s what they said:
“Taiwan Semiconductor detracted from performance despite a business performance that saw revenue accelerate to over +30% growth. The Company is one of the few fabs in the world that is capable of manufacturing leading-edge integrated circuits (IC). The Company’s leading-edge capacity is being absorbed by high-performance computing applications, particularly by Apple, which has become an integrated circuit powerhouse over the past decade. 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.”
2. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 83
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company operating through its Computing and Graphics and Enterprise, Embedded and Semi-Custom segments. The company’s products include x86 microprocessors, chipsets, and discrete and integrated graphics processing units, among more.
Aaron Rakers, an analyst at Wells Fargo, holds an Overweight rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) shares as of this July. Rakers also placed a $130 price target on the shares.
Advanced Micro Devices, Inc. (NASDAQ:AMD) was one of the top stocks leading the rally in semiconductor stocks this July in light of the CHIPS bill moving forward in the US Senate. Advanced Micro Devices, Inc. (NASDAQ:AMD) gained about 2%, leading other industry players. Matt Bryson from Wedbush Securities also commented the week of July 21 that Advanced Micro Devices, Inc. (NASDAQ:AMD) was his top stock in the semiconductor space, and many hedge funds have been pouring into the company as well.
There were 83 hedge funds long Advanced Micro Devices, Inc. (NASDAQ:AMD) in the first quarter, compared to 69 hedge funds in the previous quarter. Their total stake values were $6.9 billion and $6.7 billion, respectively.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 102
NVIDIA Corporation (NASDAQ:NVDA), a semiconductor company, provides graphics and compute and networking solutions in the US, Taiwan, China, and internationally. The company’s products are used in the gaming, professional visualization, data center, and automotive markets.
Barclays analyst Blayne Curtis holds an Overweight rating on NVIDIA Corporation (NASDAQ:NVDA) shares as of this July, alongside a $200 price target.
The same month, Tigress Financial’s Ivan Feinseth noted that NVIDIA Corporation (NASDAQ:NVDA) held a leadership position in data centers, AI, and autonomous technology, which would drive accelerating growth for the company. Feinseth still sees an upside of over 90% for the stock, making it highly tempting to elite hedge funds.
In the first quarter of 2022, 102 hedge funds were long NVIDIA Corporation (NASDAQ:NVDA). Their total stake value was $6.4 billion.
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