In this piece, we will take a look at the top five stocks that hedge funds are buying in 2022. To learn more about the industry and discover additional stocks, head on to Hedge Funds are Buying These 10 Semiconductor Stocks in 2022.
5) Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 76
Intel Corporation (NASDAQ:INTC) is the largest semiconductor company in the world. It is widely credited with having pioneered the modern day microprocessor, and this is reflected in its name as well, which originally stood for ‘integrated electronics’, referring to the different circuits that come together to form a chip. The company is headquartered in Santa Clara, California, United States.
Intel Corporation (NASDAQ:INTC) is currently at the center of a massive revamp, through which it aims to regain manufacturing leadership globally and diversify its operations by offering its services to other companies. Through these, Intel Corporation (NASDAQ:INTC) will accept orders from other chip firms and build their products for them.
Intel Corporation (NASDAQ:INTC) reported $18 billion in revenue and $0.87 in non-GAAP EPS for its fiscal Q1, beating analyst estimates for both. 76 out of the 912 hedge funds surveyed by Insider Monkey by the end of Q1 2022 had held a stake in the company.
Seth Klarman’s Baupost Group is Intel Corporation (NASDAQ:INTC)’s largest investor among the hedge funds part of Insider Monkey’s research. It owns 16.5 million shares that are worth $822 million.
4) Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 78
Micron Technology, Inc. (NASDAQ:MU) is a semiconductor firm that focuses on selling memory and storage products all over the world. These include dynamic random access memories (DRAMs) and NAND, NOR and solid state storage devices (SSDs). The products are included in both personal and enterprise computing devices. Micron Technology, Inc. (NASDAQ:MU) is headquartered in Boise, Idaho, United States.
Wells Fargo kept a $115 price target for the company in May 2022, stating that its earnings results merited a positive reevaluation. Additionally, it outlined that Micron Technology, Inc. (NASDAQ:MU)’s forward pricing agreements are a big strong point for the company.
Micron Technology, Inc. (NASDAQ:MU)’s largest investor is David Goel and Paul Ferri’s Matrix Capital Management which owns four million shares that are worth $311 million.
3) Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 81
The Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest contract chip manufacturer. Its business model involves the company taking designs from chip firms such as Advanced Micro Devices, Inc. (NASDAQ:AMD) and manufacturing the semiconductors. The firm is based out of Taiwan, as its name suggests.
Looking at the current state of the semiconductor industry, the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is currently one of the three in the world that are capable of manufacturing semiconductors with leading edge processes that are capable of printing circuits as small as 5-nanometers (nm) in width. The company is also setting up a chip fabrication in the U.S. that is expected to be operational by 2024. Insider Monkey scanned 912 hedge fund holdings in Q1 2022 to discover that 81 had bought a stake in the company.
The Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) posted $17.6 billion in revenue and $1.40 in non-GAAP EPS for its first fiscal quarter in a strong set of results that saw it beat analyst estimates for both. Morgan Stanley kept a NT$780 share price target for the company in April 2022, successfully predicting that the company will beat estimates despite a semiconductor slowdown.
Ken Fisher’s Fisher Asset Management is the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s largest investor. It has a $2.7 billion stake that comes through 26 million shares.
2) Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 83
Advanced Micro Devices, Inc. (NASDAQ:AMD) is an American semiconductor designer and seller that focuses on selling central processing units (CPUs) and graphics processing units (GPUs). It is one of the handful of companies in the world that can design semiconductors on the x86 microarchitecture, and its primary rivals are Intel Corporation (NASDAQ:INTC) and NVIDIA Corporation (NASDAQ:NVDA).
For its fiscal first quarter, Advanced Micro Devices, Inc. (NASDAQ:AMD) reported that it had earned record revenue in the form of $5.9 billion and alongside posting a non-GAAP EPS of $1.13. These comfortably beat analyst estimates for both metrics, and the revenue grew by a staggering 71% annually. As a result, the company’s share price jumped by 4.2% in aftermarket trading. Of the 912 hedge fund portfolios analyzed by Insider Monkey for this year’s March quarter, 83 had held a stake in Advanced Micro Devices, Inc. (NASDAQ:AMD).
Advanced Micro Devices, Inc. (NASDAQ:AMD) continued its expansion in the enterprise computing segment in May 2022, as it completed acquiring another company that focuses on data centers.
Advanced Micro Devices, Inc. (NASDAQ:AMD)’s largest investor in Insider Monkey’s database is Ken Fisher’s Fisher Asset Management. It owns 24 million shares that are worth $2.6 billion.
1) NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 102
NVIDIA Corporation (NASDAQ:NVDA) is one of the largest semiconductor companies in the world in terms of market capitalization. The firm primarily designs, develops, and sells graphics processing units (GPUs), which are a relatively new kind of semiconductor that aid the traditional CPU in crunching heavy duty instructions.
NVIDIA Corporation (NASDAQ:NVDA)’s fiscal first quarter results came with a bit of drama. While the company posted $8.3 billion in revenue and $1.36 in non-GAAP EPS, and beat analyst estimates for both, its share price still tanked in aftermarket trading. This was due to the fact that the company’s revenue estimates for the ongoing quarter fell short of what Wall Street was expecting, as it factored in the impacts of the Russian invasion of Ukraine and problems in China.
Baird reduced its share price target to $165 from $225 in May 2022, stating that the company’s gaming revenue will continue to be affected but it is a solid stock for the long term. Insider Monkey’s Q1 2022 analysis of 912 hedge funds revealed that 102 had bought a stake in the company, making NVIDIA Corporation (NASDAQ:NVDA) our most popular semiconductor stock.
Ken Fisher’s Fisher Asset Management is NVIDIA Corporation (NASDAQ:NVDA)’s largest investor through a $1.9 billion stake that comes via 7.3 million shares.
Disclosure: None. You can also take a look at 10 European Defense Stocks to Buy Now and 10 Tech Stocks to Buy Now According to Barry Dargan’s Intermede Investment Partners.
