Five Semiconductor Stocks Hedge Funds Love

#3 Avago Technologies Ltd (NASDAQ:AVGO)

Investors with Long Positions (as of September 30): 66

Aggregate Value of Investors’ Holdings (as of September 30): $4.40 Billion

So far this year the stock price of the Singapore-based $39.62 billion radio frequency chip vendor has surged by more than 38%. During the third trimester the total number of hedge funds long Avago Technologies Ltd (NASDAQ:AVGO) slid by 6 and subsequently the aggregate value of these holdings decreased by 6.7%. With the buyout of chip giant Broadcom this year Avago is even better positioned to service its two major clients Apple and Samsung. The company is set to demonstrate its latest optical transceiver technologies for the next generation data centers and enterprise storage applications that will cater for higher bandwidth demands. Viking Global, led by Andreas Halvorsen, holds about 6.94 million shares of Avago Technologies Ltd (NASDAQ:AVGO).

 

#2 Broadcom Corporation (NASDAQ:BRCM)

Investors with Long Positions (as of September 30): 67

Aggregate Value of Investors’ Holdings (as of September 30): $6.73 Billion

While Broadcom’s merger with Avago has received the approval from shareholders of both the companies, it is still awaiting a nod from regulators. The deal is expected to close at the end of this year or in early 2016. In its financial results for the third quarter Broadcom Corporation (NASDAQ:BRCM) managed to beat both the top and bottom line estimates. Even though the total number of funds holding shares of Broadcom in their portfolios fell by 12 during the third quarter, the aggregate value of these holdings increased by 25%. Matthew Halbower‘s Pentwater Capital Management hiked its stake in Broadcom Corporation (NASDAQ:BRCM) by 8% to 22.1 million shares.

 

#1 Micron Technology, Inc. (NASDAQ:MU)

Investors with Long Positions (as of September 30): 71

Aggregate Value of Investors’ Holdings (as of September 30): $1.87 Billion

The $14.72 billion memory chip maker recently agreed to buy the remaining 67% stake in Taiwan’s Inotera Memories for $3.2 billion. The deal is expected to close in the middle of next year. Stifel Nicolaus’ analyst Kevin CAssidy believes that the full ownership of DRAM capacity will enable Micron Technology, Inc. (NASDAQ:MU) to convert DRAM capacity to 3D XPoint, which it is developing with Intel, in the future provided that the demand expectations are met. Lower DRAM prices have wrecked havoc with Micron’s stock price this year as it is down by almost 59% on a year-to-date basis. David Shaw‘s D. E. Shaw holds about 12.41 million shares of Micron Technology, Inc. (NASDAQ:MU).

Disclosure: none