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. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines 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!