5 Semiconductor Stocks To Watch During A Potential Tech Pullback

In this article, we will be taking a look at 5 semiconductor stocks to watch during a potential tech pullback. To see more of these stocks, you can go directly to see the 10 Semiconductor Stocks To Watch During A Potential Tech Pullback.

5. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 132

Upside Potential: 13.29%

NVIDIA Corporation (NASDAQ:NVDA) is a leading semiconductor company based in Santa Clara, California.

Mizuho’s Vijay Rakesh maintains a Buy rating and a $400 price target on NVIDIA Corporation (NASDAQ:NVDA) as of June 22.

In the first quarter, 132 hedge funds were long NVIDIA Corporation (NASDAQ:NVDA). Their total stake value was $12.3 billion.

Here’s what The Ithaka Group said about NVIDIA Corporation (NASDAQ:NVDA) in its first-quarter 2023 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) is the market leader in visual computing through the production of high-performance graphics processing units (GPUs). The company targets four large and growing markets: Gaming, Professional Visualization, Data Center, and Automotive. NVIDIA’s products have the potential to lead and disrupt some of the most exciting areas of computing, including: data center acceleration, artifi cial intelligence, machine learning, and autonomous driving. The stock’s appreciation in the quarter was twofold. First, the stock benefi ted from tremendous excitement surrounding the release of more advanced chatbots, specifi cally ChatGPT, and the likelihood this would necessitate the purchase of a large number of Nvidia’s products far into the future. Second, Nvidia posted a clean beat and raise quarter in mid-February, with investors becoming increasingly convinced the company and its suppliers are adequately working through the build up in channel inventories, which is reducing overall fears of ongoing inventory write-offs.”

4. QUALCOMM, Incorporated (NASDAQ:QCOM)

Number of Hedge Fund Holders: 69

Upside Potential: 15.26%

As of June 22, Vijay Rakesh at Mizuho holds a Buy rating and a $140 price target on QUALCOMM, Incorporated (NASDAQ:QCOM).

QUALCOMM, Incorporated (NASDAQ:QCOM) is a semiconductor company that develops and commercializes foundational technologies for the wireless industry.

There were 69 hedge funds holding stakes in QUALCOMM, Incorporated (NASDAQ:QCOM) at the end of the first quarter, with a total stake value of $1.7 billion.

3. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 102

Upside Potential: 20.48%

In total, 102 hedge funds were long Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in the first quarter, with a total stake value of $8.9 billion.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures and sells integrated circuits and semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the US, and internationally.

On June 16, Mehdi Hosseini at Susquehanna raised the firm’s price target on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) from $126 to $128. The analyst also holds a Positive rating on the stock.

Baron Funds made the following comment about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its first-quarter 2023 investor letter:

“Semiconductor giant Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) contributed in the first quarter due to easing geopolitical concerns and expectations for end-demand recovery later in 2023. We retain conviction that Taiwan Semi’s technological leadership; pricing power; and exposure to secular growth markets, including high-performance computing, automotive, 5G, and IoT; will allow the company to sustain strong earnings growth over the next several years.”

2. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 91

Upside Potential: 23.63%

Mizuho’s Vijay Rakesh holds a Buy rating and a $140 price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) as of June 22.

We saw 91 hedge funds holding stakes in Advanced Micro Devices, Inc. (NASDAQ:AMD) during the first quarter. Their total stake value was $4.9 billion.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company based in Santa Clara, California.

Horizon Kinetics LLC noted the following about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its first-quarter 2023 investor letter:

“It is among what are considered to be the great technology companies, like Advanced Micro Devices, Inc. (NASDAQ:AMD) and Intel, that one is apt to see some of the greatest confusion between short-term financial results and share price movements, on the one hand, and long-term financial results. The former are exceedingly difficult to predict. Long term results are relatively easy to predict, because they are bound by the limiting realities of the business model. In the case of AMD, that is the business of being a large-scale semi-conductor manufacturer with a more dominant competitor that has a scale economy advantage.

Here’s what people see, remember and act upon. In the past several years, AMD has been the best performing major technology stock. It’s outperformed Apple, Amazon, Google, Meta (Facebook) and Nvidia…” (Click here to read the full text)

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

Number of Hedge Fund Holders: 24

Upside Potential: 32.70%

STMicroelectronics N.V. (NYSE:STM) develops semiconductor products for sale across the globe. It is based in Switzerland.

STMicroelectronics N.V. (NYSE:STM) was found in the portfolios of 24 hedge funds at the end of the first quarter, with a total stake value of $488 million.

Christopher Rolland at Susquehanna holds a Positive rating and a $54 price target on STMicroelectronics N.V. (NYSE:STM) as of June 13.

See also 10 Undervalued Semiconductor Stocks To Buy Now and 20 Largest Semiconductor Companies in the World.