5 Semiconductor Stocks to Buy Under $50

2. STMicroelectronics N.V. (NYSE:STM)

Number of Hedge Fund Holders: 15

Share Price (as of March 1): $40.45

STMicroelectronics N.V. (NYSE:STM) is a Swiss company that deals in the production and sale of semiconductor products.

In January, Craig-Hallum analyst Anthony Stoss kept a ‘Buy’ rating on STMicroelectronics N.V. (NYSE:STM) shares, noting that the semiconductor firm was one of the best ways to make an EV play. Analyst Tristan Gerra of research firm Baird also had a bullish assessment of STMicroelectronics N.V. (NYSE:STM), noting that the firm is enjoying strong demand and is likely to raise prices in 2022. He had an ‘Outperform’ rating on the stock, and a price target of $62, up from $50.

In February, STMicroelectronics N.V. (NYSE:STM) announced the launch of a new family of high-resolution Time-of-Flight sensors, which will bring advanced 3D depth imaging to smartphones and other devices. The firm also introduced the third generation of its MEMS sensors, which will bring about the next leap in performance for smartphones, wearables, healthcare, retail, and other smart industries.

Hedge fund sentiment reflected the positive trajectory of the Swiss semiconductor firm, which was held by 15 hedge funds in the fourth quarter of 2021. In comparison, 11 hedge funds held stakes in STMicroelectronics N.V. (NYSE:STM) in Q3 2021.

Here is what Saturna Capital, an investment firm, had to say about STMicroelectronics N.V. (NYSE:STM) in its Q3 2021 investor letter:

“STMicroelectronics has a goal of becoming carbonneutral by 2027, and in 2020 reported that their greenhouse gas emissions were down 19% over the previous year. In 2020, STMicroelectronics was the only semiconductor company with targets approved by the Science Based Targets Initiative for limiting warming to 1.5 degrees Celsius, and their 2027 net-zero goal is recognized as one of the most ambitious in the industry. As greenwashing presents a growing concern within the ESG community, and as more and more funds engage in re-branding exercises that have little to do with pursuing sustainable investment practices among others, our definition of sustainability includes financial sustainability, most often demonstrated by intelligent capital allocation leading to solid cash flows that can sustain a business without resorting to excessive leverage.”