Top Semiconductor Companies Loved By Hedge Funds: Intel Corporation (INTC), Broadcom Corporation (BRCM)

Page 1 of 2

Hedge fund activity is an important indicator to follow. On an aggregate level, individual investors can use the smart money’s sentiment toward a particular stock as a general indicator of whether or not to be bullish. At Insider Monkey, our empirical research shows that individuals who mimic hedge funds can beat the market by double-digits annually (see the details of our market-beating strategy here).

S&P holds an optimistic outlook for the semiconductors industry over the next year, citing that “a fairly lean inventory supply chain [is expected] to leave the supply-demand balance even-to-slightly favorable for inventory replenishment,” forecasting growth of 4%. By using 13F filings from the SEC, we can chronicle just how the hedge fund industry’s top players are playing this trend.

Intel Corporation (NASDAQ:INTC)

Of the 400+ hedge funds we track, Intel Corporation (NASDAQ:INTC) was the most loved semiconductor company at the end of the last filing period, with 44 funds invested. Intel was down in 2012, but has been a relatively good investment since the start of the New Year, gaining 7.1% year-to-date. This appreciation seems to be a factor of: (1) anticipation of the company’s Q4 earnings, and buzz over its CES mobile unveiling.

The company reports its earnings this Thursday, and analysts are expecting a 30% growth in Intel’s bottom line, totaling a 45-cent EPS. Intel is looking to make it a perfect four-for-four in terms of EPS beats in its 2012 fiscal year, and at a mere 11.3 times forward earnings, investors could see a value-based appreciation in the near future.

In second place, we have Broadcom Corporation (NASDAQ:BRCM), with 32 hedge funds holding positions in the key Apple supplier. We’ve covered Broadcom before (see Broadcom: More Than Just an Apple Supplier), but the bullish thesis surrounding this chipmaker seems to boil down to one thing: 5G WiFi. Broadcom was the first to introduce the chip last year, and is one step ahead of its competitors in 2013.

The company recently announced that it would power LG’s newest smart TV, and that it would manufacture its own set-top box with 5G WiFi. Partnerships with Samsung, NetGear and Comcast also bode well for Broadcom’s future, and it’s a possibility that more Apple connectivity is in store. At a forward P/E below 12x, there’s obvious value to be had with Broadcom’s outstanding growth potential.

Who’s the best of the rest?

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!