5 Best Semiconductor Stocks to Buy in 2021

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In this article we discuss the 5 best semiconductor stocks for 2021. If you want to read our detailed analysis of the semiconductor industry, go directly to 10 Best Semiconductor Stocks to Buy in 2021.

5. Broadcom Inc. (NASDAQ: AVGO)

Number of Hedge Fund Holders: 59

Headquartered in in San Jose, California, Broadcom Inc. is the leading designer, developer, and supplier of semiconductor and infrastructure software products and solutions globally. The company serves the wireless, networking, enterprise, broadband, storage and industrial markets. The company beat the Street’s estimates for fiscal first quarter, driven by continued strong demand for semiconductors. Management mentioned that bookings were up 63% due to higher-than-expected demand and the company is already 90% booked for 2021. Also, the company has a track record of generating substantial amount of free cash flow, about $3.5 billion a quarter, half of which is distributed among shareholders via dividends.

As of the end of the fourth quarter, 59 hedge funds in Insider Monkey’s database of 887 funds held stakes in AVGO. Cantillon Capital Management is the company’s biggest stakeholder, with 1.2 million shares worth $505.7 million.

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