In this article, we discuss the 5 semiconductor stocks to buy under $50. If you want to read our detailed analysis of the semiconductor industry, go directly to 10 Semiconductor Stocks to Buy Under $50.
5. Vishay Intertechnology, Inc. (NYSE:VSH)
Number of Hedge Fund Holders: 31
Share Price (as of March 1): $18.38
Up next is Vishay Intertechnology, Inc. (NYSE:VSH), a US-based maker of discrete semiconductors and passive electronic components. In February, Matthew Sheerin, an analyst at research firm Stifel, reiterated a ‘Buy’ rating on Vishay Intertechnology, Inc. (NYSE:VSH) shares.
Vishay Intertechnology, Inc. (NYSE:VSH) is expected to see growth from the boom in electric vehicles and 5G technology. Its revenue for Q4 was $843.07 million, above analysts’ forecasts by $18.60 million. EPS was in-line with estimates, standing at $0.62.
In December, Vishay Intertechnology, Inc. (NYSE:VSH) agreed to acquire Barry Industries for $21 million, in a deal that will expand its expertise in high power resistor and high-frequency technologies.
Investors were seen buying into Vishay Intertechnology, Inc. (NYSE:VSH), as 31 hedge funds held stakes in the firm in the fourth quarter, up from 28 hedge funds in the preceding quarter. With 3.8 million shares worth roughly $85 million, Royce & Associates was the top shareholder of Vishay Intertechnology, Inc. (NYSE:VSH) in the fourth quarter.
4. Amkor Technology, Inc. (NASDAQ:AMKR)
Number of Hedge Fund Holders: 21
Share Price (as of March 1): $21.44
Amkor Technology, Inc. (NASDAQ:AMKR) makes semiconductor packaging and test technology solutions and is based in the United States. These include semiconductor wafer bump, wafer probe, package design, and test and drop shipment services. The firm was given a ‘Buy’ rating by Sidoti analyst Chrishan Anketell in December.
In November last year, Amkor Technology, Inc. (NASDAQ:AMKR) agreed to build a smart factory in Vietnam, for which the first-phase investment will range between $200 million and $250 million. This site will enable allow high-volume production by the second half of 2023, while the first phase of production is expected to start this year.
As of the fourth quarter, 21 out of 924 hedge funds tracked by Insider Monkey held stakes in Amkor Technology, Inc. (NASDAQ:AMKR), with a combined value of $216 million.
Amkor Technology, Inc. (NASDAQ:AMKR) reported earnings per share of $0.88 for the fourth quarter, which beat analysts’ estimates by $0.22. Quarterly revenue of $1.72 billion also outperformed estimates by $77.24 million.
3. ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS)
Number of Hedge Fund Holders: 5
Share Price (as of March 1): $36.05
ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS) is a Taiwanese company that offers semiconductor testing and packaging solutions, as well as high-integration and high-precision integrated circuits. As of March 1, ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS) saw its share price gain 32.39% in the last 12 months, and 2.62% year to date.
ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS) has enjoyed the recent boom in the semiconductor market, and its revenue for 2021 was $987.7 million, up 19.1% year-on-year. Fourth-quarter revenue stood at $244.8 million, also posting a healthy increase of 7.6% from the prior-year period.
5 hedge funds had long positions in ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS) at the close of the fourth quarter, holding stakes with a combined value of $57.6 million. The same number of hedge funds held stakes in the chipmaker in the previous quarter.
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.”
1. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 72
Share Price (as of March 1): $46.82
Intel Corporation (NASDAQ:INTC) is a chip-maker based in the United States and offers various technologies for smart devices around the globe.
In February, Raymond James analyst Chris Caso upgraded Intel Corporation (NASDAQ:INTC) to ‘Market Perform’ from ‘Underperform’. The firm has announced plans to invest $100 billion towards building chip-making plants in the coming years and will also release new central processing chips every year until 2025. This is part of the company’s long-term plan to accelerate growth and catch a bigger portion of the competitive chip-making market. Intel Corporation (NASDAQ:INTC) expects revenue to increase 1.7% to $76 billion this year, grow 5-9% in 2023 and 2024, and post 10% to 12% gains in 2025 and 2026.
Reporting its Q4 earnings on January 26, Intel Corporation (NASDAQ:INTC) posted an EPS of $1.09, which beat consensus estimates by $0.18. $19.53 billion in revenue for the quarter was also above analysts’ forecasts by $1.21 billion.
The craze around the semiconductor industry was evident from investor behavior, and Intel Corporation (NASDAQ:INTC) remains one of the biggest names in the industry. Tellingly, 72 hedge funds held stakes in Intel Corporation (NASDAQ:INTC) at the close of the fourth quarter, with a combined value of $5.5 billion. This is up from 66 hedge funds with stakes in the company a quarter ago.
Third Point Management mentioned many stocks in its Q4 2021 investor letter, and Intel Corporation (NASDAQ:INTC) was one of them. The fund said:
“2021 was a highly productive year for Intel‘s new CEO, Pat Gelsinger. Despite the stock’s tepid results, we see a compelling, underappreciated fundamental story. Intel’s “brain drain” – a key part of our thesis when we first sought to help the company confront its long-time underperformance – appears to be reversing. Since joining Intel, Mr. Gelsinger has not only brought back prominent Intel former employees but has also attracted talents from competitors such as AMD, Nvidia, Apple, and, most recently, Micron’s stellar Chief Financial Officer, David Zinsner.
We are encouraged by Intel’s aggressive investment plan, including a recently announced fabrication plant in Ohio and acquisition of Tower Semiconductors. We knew from the start that Intel’s turnaround would be complex and lengthy, and we have been pleased to see Mr. Gelsinger sacrifice near-term earnings for long-term growth.
Finally, after a series of blunders across its PC and Server product lines, Intel is finally receiving good reviews for one of its upcoming processors: Alder Lake. Tom’s Hardware, a preeminent hardware publication, called Alder Lake “a cataclysmic shift in Intel’s battle against AMD’s potent Ryzen 5000 chips.” While this is just one product across a broad lineup, and given it will take time to achieve leadership across them all, we are encouraged by these tangible signs of progress under Mr. Gelsinger’s leadership. With talent returning, an improving product suite, and a willingness to invest for growth, we believe Intel’s prospects have turned the corner. We expect that the company’s upcoming analyst day will be an ideal time for Mr. Gelsinger to articulate the progress he has made and begin to reset expectations for the company.”
You can also take a look at 10 Best Dividend Stocks for Passive Income and 10 Best Auto Stocks to Buy Now.
