In this article, we discuss the 5 best performing semiconductor stocks of 2021. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Performing Semiconductor Stocks of 2021.
5. ASML Holding N.V. (NASDAQ:ASML)
Number of Hedge Fund Holders: 41
Year-To-Date Gain: 64%
ASML Holding N.V. (NASDAQ:ASML) makes and sells advanced semiconductor equipment systems. Earlier this year, the company had secured a deal worth $4.3 billion with SK Hynix, the second-largest chipmaker in the world, to provide the latter with secure extreme ultraviolet scanners.
In September, ASML Holding N.V. (NASDAQ:ASML) had forecast that it would reach between €24 billion and €30 billion in revenue within the next three years with margins above 50% amid a profitable and innovative ecosystem in the electronics industry.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in ASML Holding N.V. (NASDAQ:ASML) with 4 million shares worth more than $3 billion.
In its Q2 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and ASML Holding N.V. (NASDAQ:ASML) was one of them. Here is what the fund said:
“Dutch technology company ASML is the world’s only supplier of photolithography systems to leading-edge semiconductor manufacturers. It is a gross simplification and a valid point to note that ASML’s technology enables the computing technology we use today. For years, ASML engineers bent the laws of physics and enabled Moore’s Law—which states that computer chips will become faster and cost less—to progress.
Incremental innovation gains mushroomed with the rollout of Extreme Ultraviolet (EUV) technology. We were impressed by management’s recent acknowledgment that demand for ASML’s lithography systems is exceeding their prior expectations. Recent announcements by management and major customers for ASML give us even more confidence in the sustainability of growth. We believe ASML could grow its earnings at a high-teens rate over the coming five years.”
4. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 68
Year-To-Date Gain: 73%
Applied Materials, Inc. (NASDAQ:AMAT) provides manufacturing and software services to the semiconductor industry. The company has a market cap of $129 billion and posted $23 billion in revenue in the last fiscal year.
On November 23, investment advisory Lynx reiterated a Buy rating on Applied Materials, Inc. (NASDAQ:AMAT) stock and raised the price target to $200 from $140. KC Rajkumar and Jahanara Nissar issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Generation Investment Management is a leading shareholder in Applied Materials, Inc. (NASDAQ:AMAT) with 4.3 million shares worth more than $563 million.
3. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 65
Year-To-Date Gain: 74%
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a California-based semiconductor firm. The stock has rallied in the past few weeks after tech giant Meta announced that it would use the Epyc chips made by AMD in Meta data centers.
Wedbush analyst Matt Bryson recently maintained an Outperform rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) stock and raised the price target to $165 from $140, noting that the company was poised to gain market share in the coming months if it executed growth ideas.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Advanced Micro Devices, Inc. (NASDAQ:AMD) with 19 million shares worth more than $2 billion.
In its Q4 2020 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Advanced Micro Devices, Inc. (NASDAQ:AMD) was one of them. Here is what the fund said:
“We also exited our positions in Advanced Micro Devices. Our investment campaign in Advanced Micro Devices (AMD) began in the second half of 2018, and we have seen a new management team reinvigorate the company’s product portfolio of microprocessors for PCs and servers, graphics processors, and video game consoles. These new, higher-margin products have helped the company partially close its margin gap with peers and capture share from market leader Intel. While we believe there is meaningful runway for further share gains and margin expansion, AMD has appreciated far beyond our mid-cap market cap mandate, and we exited our position.”
2. Axcelis Technologies, Inc. (NASDAQ:ACLS)
Number of Hedge Fund Holders: 22
Year-To-Date Gain: 116%
Axcelis Technologies, Inc. (NASDAQ:ACLS) markets ion implantation and other processing equipment used for the fabrication of semiconductor chips. The company has increased collaborations internationally in the past year, sending high energy and high current systems to a leading chip foundry in China.
Axcelis Technologies, Inc. (NASDAQ:ACLS) posted earnings for the third quarter on November 3, reporting earnings per share of $0.81, beating estimates by $0.10. The revenue over the period was $176 million, up 60% year-on-year.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Rima Senvest Management is a leading shareholder in Axcelis Technologies, Inc. (NASDAQ:ACLS) with 1.8 million shares worth more than $88 million.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 83
Year-To-Date Gain: 152%
NVIDIA Corporation (NASDAQ:NVDA) operates as a visual computing firm. The company recently smashed market expectations on earnings per share and revenue for the third quarter by $0.09 and $290 million respectively.
Raymond James analyst Chris Caso recently raised the price target on NVIDIA Corporation (NASDAQ:NVDA) stock to $365 from $225 and kept a Strong Buy rating on the shares, underlining that the data center demand for chips made by NVIDIA was accelerating.
At the end of the third quarter of 2021, 83 hedge funds in the database of Insider Monkey held stakes worth $10 billion in NVIDIA Corporation (NASDAQ:NVDA), down from 86 the preceding quarter worth $9 billion.
In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:
“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. We previously owned NVIDIA and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA to the portfolio.”
You can also take a peek at 10 Companies that Benefit From Crypto Mining and 10 New Penny Stocks Redditors are Buying.
