5 Undervalued Semiconductor Stocks To Buy According to Hedge Funds

In this article, we will be taking a look at 11 undervalued semiconductor stocks to buy according to hedge funds. To skip our detailed analysis of the semiconductor sector, you can go directly to see the 11 Undervalued Semiconductor Stocks To Buy According to Hedge Funds.

5. Microchip Technology Incorporated (NASDAQ:MCHP)

Number of Hedge Fund Holders: 43

P/E Ratio: 20.2

Microchip Technology Incorporated (NASDAQ:MCHP) develops smart, connected, and secure embedded control solutions. It offers microcontrollers, mixed-signal microprocessors, and specialized microcontrollers.

As of March 14, Stifel analysts hold a Buy rating and $94 price target on Microchip Technology Incorporated (NASDAQ:MCHP).

At the end of the fourth quarter, 43 hedge funds were long Microchip Technology Incorporated (NASDAQ:MCHP), with a total stake value of $839.5 million.

Weitz Investment Management mentioned Microchip Technology Incorporated (NASDAQ:MCHP) in its third-quarter 2023 investor letter:

“We added a new position in Microchip Technology, Inc., (NASDAQ:MCHP) to the Fund during the quarter. Microchip is a leading provider of mixed signal microcontrollers and analog semiconductors to a broad range of industrial, data center, automotive, communication and consumer appliance customers. The company enjoys favorable product characteristics that help drive strong profitability, and it benefits from several long-wave demand tailwinds such as electronification, automation, and growth in data communications. While Microchip is not immune from semiconductor cycles, its cash flows have been durable through cycles. The multi-year outlook is solid, and we think the company is poised to further boost per-share value growth through increasing share repurchases at discounted prices.

4. ON Semiconductor Corporation (NASDAQ:ON)

Number of Hedge Fund Holders: 45

P/E Ratio: 14.9

Mizuho analysts hold a Buy rating and $92 price target on ON Semiconductor Corporation (NASDAQ:ON) as of February 6.

At the end of the fourth quarter, 45 hedge funds held stakes in ON Semiconductor Corporation (NASDAQ:ON), with a total stake value of $885.1 million.

ON Semiconductor Corporation (NASDAQ:ON) offers intelligent sensing and power solutions to enable the electrification of the automotive industry and is one of the best cheap semiconductor stocks to buy. It is based in Scottsdale, Arizona.

Scout Investments, Inc mentioned ON Semiconductor Corporation (NASDAQ:ON) in its fourth-quarter 2023 investor letter:

“Finally, ON Semiconductor Corporation (NASDAQ:ON) rounded out the losers; it suffered from a generally weak semiconductor market, and a glut of electric vehicles at U.S. auto dealers raised concerns over excess semiconductor inventory in the distribution channel, which hurt sentiment on the stock.”

3. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders: 55

P/E Ratio: 23.7

Texas Instruments Incorporated (NASDAQ:TXN) had 55 hedge funds long its stock in the fourth quarter, with a total stake value of $2.3 billion.

Based in Dallas, Texas, Texas Instruments Incorporated (NASDAQ:TXN) is a designer and manufacturer of semiconductors. It offers power products, battery-management solutions, isolated controllers, and converters, among more.

Susquehanna analysts maintained a Positive rating and a $200 price target on Texas Instruments Incorporated (NASDAQ:TXN) on January 24.

2. Applied Materials, Inc. (NASDAQ:AMAT)

Number of Hedge Fund Holders: 70

P/E Ratio: 24.3

Applied Materials, Inc. (NASDAQ:AMAT) is a semiconductor materials and equipment company. It provides manufacturing equipment, services, and software to the semiconductor, display, and related industries.

We saw 70 hedge funds long Applied Materials, Inc. (NASDAQ:AMAT) in the fourth quarter, with a total stake value of $6.1 billion.

On March 11, Bernstein analysts maintained an Outperform rating and a $240 price target on Applied Materials, Inc. (NASDAQ:AMAT).

1. QUALCOMM, Incorporated (NASDAQ:QCOM)

Number of Hedge Fund Holders: 78

P/E Ratio: 24.2

As of February 1, Piper Sandler analysts hold an Overweight rating and a $165 price target on QUALCOMM, Incorporated (NASDAQ:QCOM).

QUALCOMM, Incorporated (NASDAQ:QCOM) was spotted in the portfolios of 78 hedge funds in the fourth quarter, with a total stake value of $2.9 billion.

Based in San Diego, California, QUALCOMM, Incorporated (NASDAQ:QCOM) develops and commercialized foundational tech for the wireless industry. It develops integrated circuits and system software, among more.

See also 25 Most Valuable Semiconductor Companies In The World and Semiconductor Market Share by Country: Top 12.