Yahoo! Inc. (YHOO), Amazon.com, Inc. (AMZN) Among D.E. Shaw’s Top Tech Picks

Qualcomm, Inc. (NASDAQ:QCOM) is one of the best growth stocks operating in the semiconductor industry. Revenues are expected to be up 25% in FY2013 and 10% in FY2014. This expansion should come from high-end chips and greater penetration of the smartphone market. The tech company’s gross margins remain robust at 60%, and handset and chipset sales continue to accelerate. From a valuation standpoint, Qualcomm trades as one of the cheapest stocks in the industry, especially when coupled with its growth prospects. Qualcomm trades at only 20x earnings, where Broadcom is at 26x and Texas Instruments is at 20x. The stock also trades at an undervalued PEG ratio of 0.97.

Amazon.com, Inc. (NASDAQ:AMZN) is one of the riches tech stocks around, trading at a P/E of over 3,000x. This e-commerce company has been steadily taking market share from a number of retailers, and expects sales to be up 30% in 2013 after a projected 30% increase in 2012. Helping further expand Amazon’s market share should be international expansion and new hardware offerings, namely via the Kindle Fire. Amazon also expects a $0.37 impairment charge related to its investment in LivingSocial, but will still post 2013 EPS of $1.74. We consider AMZN a best-in-class retailer that we expect to generate significant free cash flow to make acquisitions or embark on a number of revenue lines. Billionaire Ken Fisher – founder of Fisher Asset Management – is Amazon’s top fund owner, with over 2.5 million shares invested (check out Ken Fisher’s newest picks).

In short, it’s clear that D.E. Shaw has taken a solid interest in the tech field. This includes investments in a variety of sub-industries from search, e-commerce, to computer hardware/software. All of these companies present solid growth opportunities at fairly reasonable valuations. For more related coverage, continue reading here:

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