In this piece, we will take a look at the 5 semiconductor stocks to watch amid Russia-Ukraine war. For a detailed look at the impact of the current situation on the semiconductor sector, head on over to 10 Semiconductor Stocks To Watch Amid Russia-Ukraine War.
5. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 74
Intel Corporation (NASDAQ:INTC) is the world’s largest chipmaker and is known as the pioneer of the modern-day semiconductor. The company is known for primarily selling central processing units (CPUs) to both public and private sector customers alongside its largest market, the general public. It is also developing graphics processing units (GPU) to better compete with other firms in the consumer electronics segment.
Intel Corporation (NASDAQ:INTC) raked in $19.5 billion in revenue and $1.09 in non-GAAP EPS, beating analyst estimates on both counts. The company is currently in the midst of a massive capital spending run that is aimed at boosting its chip manufacturing capabilities. Raymond James upgraded Intel Corporation (NASDAQ:INTC)’s shares to Market Perform in February 2022, outlining that in order to profit from Intel’s expenditures, investors will have to face some pain but that the shares should not underperform in the near future. Out of the 924 hedge funds polled by Insider Monkey in Q4 2021, 74 had owned the company’s shares.
Intel Corporation (NASDAQ:INTC)’s largest investor according to Insider Monkey’s research is Seth Klarman’s Baupost Group which owns 18 million shares worth $928 million.
“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.”
