In this article, we will look at 3 beat-down semiconductor stocks that Jim Cramer likes. If you want to explore similar stocks, you can go to Jim Cramer Likes These 7 Beaten-Down Semiconductor Stocks.
3. Western Digital Corporation (NASDAQ:WDC)
Number of Hedge Fund Holders: 45
Western Digital Corporation (NASDAQ:WDC) develops, manufactures, and sells data storage devices and solutions in the United States, China, Hong Kong, Europe, the Middle East, Africa, rest of Asia, and internationally. As of July 22, Western Digital Corporation (NASDAQ:WDC) has a price-to-earnings ratio of 8.00 and trailing twelve-month free cash flows of $1.41 billion.
On July 15, Deutsche Bank analyst Sidney Ho trimmed his price target on Western Digital Corporation (NASDAQ:WDC) to $64 from $72 and reiterated a Buy rating on the shares. The analyst noted that the risk-reward ratio for Western Digital Corporation (NASDAQ:WDC) is attractive. On July 20, Barclays analyst Tom O’Malley lowered his price target on Western Digital Corporation (NASDAQ:WDC) to $55 from $65 and reiterated an Equal Weight rating on the shares.
At the close of Q1 2022, 45 hedge funds were bullish on Western Digital Corporation (NASDAQ:WDC). These funds held collective stakes worth $1.03 billion in the company. This is compared to 50 positions in the previous quarter with stakes of $1.28 billion.
In the first quarter of 2022, Lyrical Asset Management raised its stakes in Western Digital Corporation (NASDAQ:WDC) by 4%, bringing them to $204.09 million. Lyrical Asset Management is the largest shareholder in the company and the investment covers 2.82% of its 13F portfolio.
2. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 78
Micron Technology, Inc. (NASDAQ:MU) is a leading semiconductor manufacturer that designs, manufactures, and sells memory and storage products worldwide. The company operates through four segments: Compute & Networking Business Unit, Mobile Business Unit, Storage Business Unit, and Embedded Business Unit. Micron Technology, Inc. (NASDAQ:MU) is trading at bargain levels. As of July 22, the stock has a trailing twelve-month PE ratio of 6.99 and is offering a forward dividend yield of 0.73, which the company supports with its free cash flows of $4.81 billion.
On July 6, Micron Technology, Inc. (NASDAQ:MU) announced that its DDR5 server DRAM is now available for commercial and industrial use. The company’s next-generation DDR5 memory provides up to an 85% increase in system performance for artificial intelligence and high-performance computing applications.
Analysts have turned bearish on the semiconductor industry due to demand risks in the sector. Regardless, the stock has a consensus Buy rating and has received 19 Buy, 4 Hold, and 2 Sell ratings from 25 Wall Street analysts over the past 3 months. On July 22, Morgan Stanley analyst Joseph Moore downgraded Micron Technology, Inc. (NASDAQ:MU) to Underweight from Equal Weight and reiterated his price target of $56. Moore noted that Micron Technology, Inc. (NASDAQ:MU) has rallied even in tough market conditions.
As of March 31, Matrix Capital Management owns 4 million shares of Micron Technology, Inc. (NASDAQ:MU) and is the largest shareholder in the company. The fund’s stakes were valued at $311.56 million, which covers 3.73% of its investment portfolio.
At the close of Q1 2022, 78 hedge funds were long Micron Technology, Inc. (NASDAQ:MU) and held stakes worth $3.42 billion in the company. This is compared to 83 positions in the previous quarter with stakes worth $5.51 billion.
1. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 83
Analysts remain bullish on Advanced Micro Devices, Inc. (NASDAQ:AMD), partly due to the company’s market-leading 3rd Gen EPYC processors which are revolutionizing the data center industry. On July 15, Goldman Sachs analyst Toshiya Hari trimmed her price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $99 from $133 but maintained a Buy rating on the shares. On July 21, Wells Fargo analyst Aaron Rakers cut his price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $130 from $140 but reiterated a buy-side Overweight rating on the shares. As of July 22, Advanced Micro Devices, Inc. (NASDAQ:AMD) has trailing twelve-month free cash flows of $3.31 billion.
Over the past 3 months, 26 Wall Street analysts have given their 12-month price targets and ratings on Advanced Micro Devices, Inc. (NASDAQ:AMD). The stock has received 18 Buy and 8 hold ratings. Advanced Micro Devices, Inc. (NASDAQ:AMD) has a high forecast of $200 and a low forecast of $85. The stock’s average price target, which borders $127, implies a 44.64% upside from its closing price on July 22, which sits at $88.10.
As of March 31, Fisher Asset Management is the largest shareholder in Advanced Micro Devices, Inc. (NASDAQ:AMD) and owns more than 24.38 million shares of the company. The fund raised its stakes by 23% in the first quarter of 2022, bringing them to $2.66 billion. Advanced Micro Devices, Inc. (NASDAQ:AMD) covers 1.57% of Ken Fisher’s 13F portfolio.
At the end of Q1 2022, 83 hedge funds were bullish on Advanced Micro Devices, Inc. (NASDAQ:AMD). The total stakes of these hedge funds amounted to $6.94 billion, up from $6.74 billion in the preceding quarter when 69 hedge funds held stakes in the company. The hedge fund sentiment for the stock is positive.
Here is what Carillon Tower Advisers had to say about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its fourth-quarter 2021 investor letter:
“Advanced Micro Devices (AMD) supplies semiconductor chips for central processing units (CPUs) and graphic processing units (GPUs). The firm has been gaining share against its primary competitor in the datacenter server CPU space, as this rival has been unable to match the design and manufacturing capabilities of AMD and its partners. Investors are also looking forward to the closing of the previously announced merger with a semiconductor manufacturer that is another one of the portfolio’s holdings. The merger will increase AMD’s capabilities in the Field Programmable Gate Array (FPGA) chip space, and the combined company should possess the potential to win additional market share in the datacenter chip market.”
You can also take a look at 15 Stocks to Buy Today According to Jim Cramer and 10 Stocks Jim Cramer and Ken Fisher Have in Common.
