Two Semiconductors Stocks Beat the Market Today; Should You Follow Hedge Funds Into Them?

Atmel Corporation (NASDAQ:ATML) shares are rallying because Reuters is reporting that Cypress Semiconductor Corporation (NASDAQ:CY) is planning a bid to acquire Atmel after the technology company agreed to sell itself to Dialog Semiconductor earlier this month. Cypress Semiconductor’s bid will have to be higher than Dialog Semiconductor’s offer of approximately $4.6 billion in cash and stock in order to succeed. The semiconductor industry has experienced a wave of M&A as the era of cheap debt comes to an end.

Hedge funds liked Atmel Corporation (NASDAQ:ATML) in the second quarter. According to our data, the number of funds long Atmel increased to 36 from 28 in the prior quarter, while the total value of hedge fund holdings increased to $364.64 million from $202.18 million. Among the hedge funds that increased their positions were Soros Fund Management, which increased its position by 64% to 5.17 million shares, and Panayotis Takis Sparaggis’s Alkeon Capital Management, which increased its position by 413% to 5.13 million shares. Dmitry Balyasny’s Balyasny Asset Management also increased its position by 128% to 4.72 million shares.

Disclosure: None