$65 Billion Hedge Fund’s Big Q3 Moves in Apple Inc (AAPL), Semiconductor Stocks, More

#3 Applied Materials, Inc. (NASDAQ:AMAT)

– Shares Held by AQR Capital Management (as of September 30): 14 Million

– Value of the Holding (as of September 30): $422.31 Million

The nearly five-fold increase that AQR made to its stake in Applied Materials, Inc. (NASDAQ:AMAT) during the third-quarter pushed the company to the 16th-spot in the fund’s portfolio in terms of value at the end of September. Applied Materials, Inc. (NASDAQ:AMAT)’s stock has seen a phenomenal rise this year, gaining almost 70% in 2016. On November 17, the company reported its fiscal 2016 third quarter numbers, declaring EPS of $0.66 on revenue of $3.30 billion versus analysts’ estimates of EPS of $0.65 on revenue of $3.31 billion. Following the earnings release, analysts at Bank of America Corp. reiterated their ‘Buy’ rating on the stock on November 19 and also set a price target of $35 on it, suggesting potential upside of 10.54%.

#2 Intel Corporation (NASDAQ:INTC)

– Shares Held by AQR Capital Management (as of September 30): 12.21 Million

– Value of the Holding (as of September 30): $461.07 Million

Moving on, AQR Capital increased its stake in Intel Corporation (NASDAQ:INTC) by 80% during the third-quarter. The chip giant reported its third quarter results last month, following which its stock has taken a beating. Nevertheless, it is still trading up by 2.52% year-to-date. Analysts who track the stock think that trading at a trailing P/E of 16.59 and a price-to-sales ratio of 2.89, makes it fairly valued at current levels. According to a few analysts, Intel Corporation (NASDAQ:INTC)’s capital expenditures have been quite high for the past several quarters, which has prevented its earnings and free cash flows from rising significantly. However, most analysts continue to have a favorable outlook on the stock and are optimistic about the company’s AI and cloud initiatives.

#1 Apple Inc. (NASDAQ:AAPL)

– Shares Held by AQR Capital Management (as of September 30): 6.44 Million

– Value of the Holding (as of September 30): $728.45 Million

After reducing its stake in Apple Inc. (NASDAQ:AAPL) by 16% during the second quarter, AQR Capital Management made a U-turn during the third quarter and boosted its holding in the company by 14%. Despite the increase, the iPhone maker remained AQR’s second-largest equity holding in terms of value at the end of September. Apple Inc. (NASDAQ:AAPL)’s stock enjoyed a major rally between May and October, rising from the sub-$90 level to above $115 during that time. However, that rally ended when the company reported its third quarter results, with the stock now trading up by only 6.3% year-to-date. According to recent reports, Apple is contemplating moving some of the production of its flagship iPhone back to the U.S., but analysts who cover the stock think that’s highly unlikely unless a trade war erupts between the U.S and China.

Disclosure: None