In this piece we will take a look at the top five semiconductor stocks to buy according to billionaire Ken Fisher. For more details about the billionaire hedge fund investor, his fund, and more stocks, head on over to 10 Semiconductor Stocks To Buy Today According to Billionaire Ken Fisher.
5. Lam Research Corporation (NASDAQ:LRCX)
Fisher Asset Management’s Stake Value: $1.29 billion
Percentage of Fisher Asset Management’s 13F Portfolio: 0.72%
Number of Hedge Fund Holders: 63
Lam Research Corporation (NASDAQ:LRCX) is an American company that provides chip manufacturers with equipment to manufacture semiconductors. Its machines are used by all major chipmakers in the world, and they allow them to carry out several phases in the complex chip manufacturing process.
Mr. Fisher’s investment firm had a whopping $1.29 billion stake in Lam Research Corporation (NASDAQ:LRCX) during the fourth quarter of last year. This was through owning 1.8 million shares, and yet, it represented a mere 0.72% of the multi-billion dollar investment portfolio. Insider Monkey’s Q4 2021 survey of 924 hedge funds revealed that 63 had also owned the chipmaking equipment provider’s shares.
Lam Research Corporation (NASDAQ:LRCX) brought in $4.23 billion in revenue and $8.33 in non-GAAP EPS during its second fiscal quarter, beating analyst estimates for both. In a crucial development, the company announced new equipment in February this year, targeting the Gate All-Around (GAA) transistors, which are believed to be the next step in the semiconductor evolution process.
Lam Research Corporation (NASDAQ:LRCX)’s largest investor after Fisher Asset Management is Philippe Laffont’s Coatue Management which owns 860,025 shares worth $618 million, according to Insider Monkey’s research.
In its third quarter 2021 investor letter, ClearBridge Investments mentioned the company and stated that:
“It was a relatively quiet quarter in terms of portfolio changes, although we took advantage of very strong performance to exit semiconductor equipment manufacturer Lam Research. While Lam has extremely valuable technology and an exceptionally robust secular growth story, it is also highly cyclical, and we chose to exit our position after a period of extraordinary performance.”
4. NVIDIA Corporation (NASDAQ:NVDA)
Fisher Asset Management’s Stake Value: $1.5 billion
Percentage of Fisher Asset Management’s 13F Portfolio: 0.84%
Number of Hedge Fund Holders: 111
NVIDIA Corporation (NASDAQ:NVDA) is a graphics processing unit (GPU) designer whose products enable different kinds of calculations alongside a system’s central processing unit (CPU). Originally starting out as a firm providing products to video gamers, NVIDIA Corporation (NASDAQ:NVDA) is now diversifying its presence to include corporate customers as well.
NVIDIA Corporation (NASDAQ:NVDA) raked in $7.6 billion in revenue and $1.32 in non-GAAP EPS during its fourth fiscal quarter, in a strong set of results that saw it beat analyst estimates for both. Despite the company having to pay a billion dollar termination fee to the British design house Arm Ltd. as part of a failed takeover attempt, Mizuho raised NVIDIA Corporation (NASDAQ:NVDA)’s price target to $355 from $345 in February 2022, based on the chip firm’s strong guidance. Out of the 924 hedge funds profiled by Insider Monkey in Q4 2021, 111 had owned a stake in the company.
Mr. Fisher’s investment firm had held a $1.5 billion stake in NVIDIA Corporation (NASDAQ:NVDA) during Q4 2021, which translated into 0.84% of its investment portfolio and came through owning 5.1 million shares.
In a third quarter 20221 investor letter, Harding Loevner had the following to say about NVIDIA Corporation (NASDAQ:NVDA):
“The proliferation of devices using chips, whether EVs, “things” in lol, or embedded systems more generally, results in the generation of oceans of data potentially needing to be stored, processed, and analyzed. NVIDIA, the leading chip designer wellknown for its graphic processing units and its complementary CUDA software ecosystem, is at the forefront of the effort to provide the analytical platform needed to unlock the full potential of such specialist processors.”
Israel Englander’s Millennium Management is NVIDIA Corporation (NASDAQ:NVDA)’s second largest investor after Fisher Asset Management through a $1.1 billion stake that comes via 3.8 million shares.
3. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Fisher Asset Management’s Stake Value: $2.8 billion
Percentage of Fisher Asset Management’s 13F Portfolio: 1.6%
Number of Hedge Fund Holders: 70
Advanced Micro Devices, Inc. (NASDAQ:AMD) is an American semiconductor designer whose products target both the central processing unit (CPU) and graphics processing unit (GPU) industries. The company has grown remarkably over the past couple of years due to a strong combination of product design and manufacturing technologies.
Fisher Asset Management owned 19.9 million Advanced Micro Devices, Inc. (NASDAQ:AMD) shares in Q4 2021 in a $2.8 billion stake that was significantly larger than the one the firm held in the company’s larger rival Intel Corporation (NASDAQ:INTC). This signifies the firm’s strong confidence in Advanced Micro Devices, Inc. (NASDAQ:AMD)’s future. Out of the 924 hedge funds polled by Insider Monkey in the fourth quarter of last year, 70 had owned a stake in the company.
Advanced Micro Devices, Inc. (NASDAQ:AMD) posted $4.8 billion in revenue and $0.92 in non-GAAP EPS for its fourth fiscal quarter, beating analyst estimates for both in the form of record figures. Following this, the research firm Bernstein upgraded the company’s price target to $150 in February 2022, in a decade-first historic upgrade that saw the firm lament missed opportunities.
Carillon Tower Advisers commented on Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2021 investor letter, outlining that:
“Advanced Micro Devices (AMD) supplies semiconductor chips for central processing units (CPUs) and graphic processing units (GPUs). The firm has been gaining share against its primary competitor in the datacenter server CPU space, as this rival has been unable to match the design and manufacturing capabilities of AMD and its partners. Investors are also looking forward to the closing of the previously announced merger with a semiconductor manufacturer that is another one of the portfolio’s holdings. The merger will increase AMD’s capabilities in the Field Programmable Gate Array (FPGA) chip space, and the combined company should possess the potential to win additional market share in the datacenter chip market.”
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Fisher Asset Management’s Stake Value: $3.1 billion
Percentage of Fisher Asset Management’s 13F Portfolio: 1.74%
Number of Hedge Fund Holders: 75
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest contract chipmaker. The company has gained fame globally through its strong manufacturing technologies which have allowed consumer electronics giants Apple, Inc (NASDAQ:AAPL) and Advanced Micro Devices, Inc. (NASDAQ:AMD) to push the latest products quickly to the market.
As its fourth fiscal quarter came to an end, the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) raked in $15.74 billion in revenue and $1.15 in GAAP EPS, beating analyst estimates for both during a time the industry is experiencing significant semiconductor shortages. In a note released in February 2022, Morgan Stanley upgraded the company’s share rating to Overweight, stating that the future holds significant demand for the company’s products, despite the worries of a chip correction in the industry.
Mr. Fisher’s investment firm owned 25.9 million Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) shares in Q4 2021, for a massive $3.1 billion stake. This investment, the second largest in our list, highlights the firm’s interest in chip manufacturers as opposed to sellers, due to limited investment opportunities and future segment growth through government spending.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s largest investor after Fisher Asset Management is Rajiv Jain’s GQG Partners. It owns 13.5 million shares worth $1.6 billion. 75 of the 924 hedge funds part of Insider Monkey’s Q4 2021 survey also held a stake in the company.
L1 Capital mentioned the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its third quarter 2021 investor letter. The firm stated that:
“Even though they are not majority State owned and we would expect many of China’s technology champions to continue to grow strongly, outcomes for shareholders may be unsatisfactory… The Fund has retained its investment in Taiwan Semiconductor Manufacturing Company (TSMC) which is well placed to maintain its global leadership in semiconductor manufacturing. Due to geopolitical risks, we limit the position size of TSMC in the Fund.”
1. ASML Holding N.V. (NASDAQ:ASML)
Fisher Asset Management’s Stake Value: $3.4 billion
Percentage of Fisher Asset Management’s 13F Portfolio: 1.9%
Number of Hedge Fund Holders: 41
ASML Holding N.V. (NASDAQ:ASML) is a Dutch company that is the only one in the world that manufactures advanced machines that are capable of fabricating semiconductors with advanced technologies. The company’s products are used by the world’s leading chipmakers, such as the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and Intel Corporation (NASDAQ:INTC).
As its fourth fiscal quarter came to an end, ASML Holding N.V. (NASDAQ:ASML) had earned €4.98 billion in revenue and €4.27 in GAAP EPS, missing analyst estimates for revenue. 41 of the 924 hedge funds surveyed by Insider Monkey in Q4 2021 owned the company’s shares, and research firm Jefferies initiated coverage of the company’s stock in February 2022 with a €700 price target.
Fisher Asset Management’s $3.4 billion stake in the company through owning 4.2 million shares reflects the firm’s keen eye on the chip sector. ASML Holding N.V. (NASDAQ:ASML) is the most important semiconductor company in the world due to it being the sole source for advanced chipmaking machines, and this stake, which is the largest among the investment firm’s semiconductor holdings, is reflective of this fact.
Polen Capital mentioned ASML Holding N.V. (NASDAQ:ASML) in its Q2 2021 investor letter. Here is what the firm said:
“Dutch technology company ASML is the world’s only supplier of photolithography systems to leading-edge semiconductor manufacturers. It is a gross simplification and a valid point to note that ASML’s technology enables the computing technology we use today. For years, ASML engineers bent the laws of physics and enabled Moore’s Law—which states that computer chips will become faster and cost less—to progress.
Incremental innovation gains mushroomed with the rollout of Extreme Ultraviolet (EUV) technology. We were impressed by management’s recent acknowledgment that demand for ASML’s lithography systems is exceeding their prior expectations. Recent announcements by management and major customers for ASML give us even more confidence in the sustainability of growth. We believe ASML could grow its earnings at a high-teens rate over the coming five years.”
Disclosure: None. You can also take a peek at the 10 Best Stocks To Buy and Hold For 5 Years and 15 Best E-Commerce Stocks To Buy Now.
