Invesco Distributors, Inc., an investment management firm, released its “Invesco Growth and Income Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. AI-related stocks kept rising and propelled many equity indexes to record highs, in the quarter, while other non-AI-linked market segments saw declines. The fund underperformed its Russell 1000 Value Index (USD) benchmark in the second quarter. The fund’s relative underperformance was caused by stock selection in the industrial and healthcare sectors. Relative performance was added by stock selection in communication services and financials. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Invesco Growth and Income Fund highlighted stocks like Microchip Technology Incorporated (NASDAQ:MCHP), in the second quarter 2024 investor letter. Microchip Technology Incorporated (NASDAQ:MCHP) manufactures and distributes smart, connected, and secure embedded control solutions. The one-month return of Microchip Technology Incorporated (NASDAQ:MCHP) was -8.56%, and its shares gained 2.24% of their value over the last 52 weeks. On August 19, 2024, Microchip Technology Incorporated (NASDAQ:MCHP) stock closed at $82.03 per share with a market capitalization of $44.01 billion.
Invesco Growth and Income Fund stated the following regarding Microchip Technology Incorporated (NASDAQ:MCHP) in its Q2 2024 investor letter:
“Microchip Technology Incorporated (NASDAQ:MCHP): The chipmaker has suffered through a demand downturn that by some estimates is worse than the one during the 2008 global financial crisis. However, management estimates the second quarter of 2024 was likely the bottom, so we anticipate an inflection soon. The company has a broad product line that is sold to a diverse set of end markets, customers and channels. Additionally, the company has been deleveraging and has committed to returning capital to shareholders. We believe it will be well positioned when the semiconductor cycle turns positive.”
A semiconductor wafer at various stages of fabrication, showing the company’s range of expertise.
Microchip Technology Incorporated (NASDAQ:MCHP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held Microchip Technology Incorporated (NASDAQ:MCHP) at the end of the second quarter which was 35 in the previous quarter. In the June quarter, Microchip Technology Incorporated (NASDAQ:MCHP) reported $1.241 billion in net sales, down 6.4% sequentially. While we acknowledge the potential of Microchip Technology Incorporated (NASDAQ:MCHP) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Microchip Technology Incorporated (NASDAQ:MCHP) and shared the list of cheap robotics stocks to buy. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
