In this piece, we will take a look at the five best semiconductor stocks to invest in according to DE Shaw’s DE Shaw. If you want to find out more information about Mr. Shaw, his hedge fund, and the top five stocks in the list, then head on over to 10 Best Semiconductor Stocks to Invest in According to DE Shaw.
5. Texas Instruments Incorporated (NASDAQ:TXN)
D.E. Shaw’s Stake Value: $185 million
Percentage of D.E. Shaw’s 13F Portfolio: 0.15%
Number of Hedge Fund Holders: 57
Texas Instruments Incorporated (NASDAQ:TXN) is a chip company whose products cover several kinds of information technology gadgets. These products are used in devices such as smartphones and notebooks, and they allow signals processing, power consumption management, and processing when required.
For its fiscal fourth quarter, Texas Instruments Incorporated (NASDAQ:TXN) reported $4.8 billion in revenue and $2.27 in GAAP EPS, beating analyst estimates for both. However, despite this, research firm Raymond James cut the company’s share price rating in February 2022 on the belief that its capital spending was coming too late.
Dr. Shaw’s investment firm owned 985,086 Texas Instruments Incorporated (NASDAQ:TXN) shares during the fourth quarter of last year, which were worth $185 million and represented 0.15% of its portfolio. During the same time period, 57 of the 924 hedge funds polled by Insider Monkey also had a stake in the company.
Texas Instruments Incorporated (NASDAQ:TXN)’s largest investor is Jean-Marie Eveillard’s First Eagle Investment Management. It has a $625 million stake via 3.3 million shares.
Distillate Capital mentioned the company in its Q3 2021 investor letter. Here is what the fund said:
“The largest exited positions were Oracle, which outperformed significantly, and Texas Instruments and Honeywell, which were roughly flat versus the market in the quarter but were edged out for inclusion by other stocks that became even more attractively valued.”
4. Intel Corporation (NASDAQ:INTC)
D.E. Shaw’s Stake Value: $397 million
Percentage of D.E. Shaw’s 13F Portfolio: 0.32%
Number of Hedge Fund Holders: 74
Intel Corporation (NASDAQ:INTC) is the world’s largest semiconductor company with the unique distinction of not only being capable of manufacturing products with advanced processes but also designing them at the same time. The company’s name is ubiquitous in the personal computing industry.
D.E. Shaw owned 7.7 million Intel Corporation (NASDAQ:INTC) shares during Q4 2021, which were worth $397 million and represented 0.32% of its investment portfolio. Insider Monkey’s fourth quarter 2021 survey of 924 hedge funds revealed that 74 also had holdings in the chip company.
As its fiscal Q4 came to an end, Intel Corporation (NASDAQ:INTC) had raked in $19.5 billion in revenue and $1.09 in non-GAAP EPS, beating analyst estimates for both. The company is currently expanding its product lineup to include a graphics processing unit (GPU) as well.
Seth Klarman’s Baupost Group is Intel Corporation (NASDAQ:INTC)’s largest investor. It has a $928 million stake by owning 18 million shares.
Third Point Management mentioned Intel Corporation (NASDAQ:INTC) in its fourth quarter 2021 investor letter, outlining that:
“2021 was a highly productive year for Intel‘s new CEO, Pat Gelsinger. Despite the stock’s tepid results, we see a compelling, underappreciated fundamental story. Intel’s “brain drain” – a key part of our thesis when we first sought to help the company confront its long-time underperformance – appears to be reversing. Since joining Intel, Mr. Gelsinger has not only brought back prominent Intel former employees but has also attracted talents from competitors such as AMD, Nvidia, Apple, and, most recently, Micron’s stellar Chief Financial Officer, David Zinsner.
We are encouraged by Intel’s aggressive investment plan, including a recently announced fabrication plant in Ohio and acquisition of Tower Semiconductors. We knew from the start that Intel’s turnaround would be complex and lengthy, and we have been pleased to see Mr. Gelsinger sacrifice near-term earnings for long-term growth.
Finally, after a series of blunders across its PC and Server product lines, Intel is finally receiving good reviews for one of its upcoming processors: Alder Lake. Tom’s Hardware, a preeminent hardware publication, called Alder Lake “a cataclysmic shift in Intel’s battle against AMD’s potent Ryzen 5000 chips.” While this is just one product across a broad lineup, and given it will take time to achieve leadership across them all, we are encouraged by these tangible signs of progress under Mr. Gelsinger’s leadership. With talent returning, an improving product suite, and a willingness to invest for growth, we believe Intel’s prospects have turned the corner. We expect that the company’s upcoming analyst day will be an ideal time for Mr. Gelsinger to articulate the progress he has made and begin to reset expectations for the company.”
3. QUALCOMM Incorporated (NASDAQ:QCOM)
D.E. Shaw’s Stake Value: $547 million
Percentage of D.E. Shaw’s 13F Portfolio: 0.45
Number of Hedge Fund Holders: 76
QUALCOMM Incorporated (NASDAQ:QCOM) is the world’s leading provider of smartphone applications processors, graphics processing units (GPUs), and modems. The company’s products power smartphones, and it also dabbles in other products such as automobiles and telecommunications.
QUALCOMM Incorporated (NASDAQ:QCOM)’s fiscal Q1 saw it post $10.7 billion in revenue and $3.23 in non-GAAP EPS, in a strong set of results that pleased Wall Street by beating analyst estimates for both. Susquehanna raised the company’s price target to $190 from $175 in February 2022, highlighting that the company is tailoring its supply to growing demand.
D.E. Shaw owned 2.9 million QUALCOMM Incorporated (NASDAQ:QCOM) shares during the fourth quarter of 2021, for a $547 million stake. Insider Monkey’s poll of 924 funds for the same time period saw 76 holdings in the company.
Panayotis Takis Sparaggis’ Alkeon Capital Management is QUALCOMM Incorporated (NASDAQ:QCOM)’s largest investor. It owns 5.3 million shares worth $970 million.
2. Advanced Micro Devices, Inc. (NASDAQ:AMD)
D.E. Shaw’s Stake Value: $638 million
Percentage of D.E. Shaw’s 13F Portfolio: 0.52
Number of Hedge Fund Holders: 70
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a chip designer based out of Santa Clara, California, United States. The company sells central processing units (CPUs), graphics processing units (GPUs), and custom designed chip products to everyday consumers and corporations. The custom segment is reserved for corporate customers.
As Q4 2021 came to an end, D.E. Shaw had held a stake of $638 million in Advanced Micro Devices, Inc. (NASDAQ:AMD). This came in the form of 4.4 million shares and represented 0.52% of its portfolio. During the same time period, 70 out of the 924 hedge funds polled by Insider Monkey also owned the company’s shares.
During its fiscal 4Q, Advanced Micro Devices, Inc. (NASDAQ:AMD) earned $4.8 billion in revenue and $0.92 in non-GAAP EPS, in a stellar set of results that saw massive annual growth and beat analyst estimates at the same time. The company announced its Ryzen PRO series processors in March 2022 for professional users with workstations.
Advanced Micro Devices, Inc. (NASDAQ:AMD)’s largest investor according to Insider Monkey’s research is Ken Fisher’s Fisher Asset Management. It owns a $2.8 billion stake through 19.9 million shares.
Carillon Tower Advisers commented on Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2021 investor letter. Here is what the firm said:
“Advanced Micro Devices (AMD) supplies semiconductor chips for central processing units (CPUs) and graphic processing units (GPUs). The firm has been gaining share against its primary competitor in the datacenter server CPU space, as this rival has been unable to match the design and manufacturing capabilities of AMD and its partners. Investors are also looking forward to the closing of the previously announced merger with a semiconductor manufacturer that is another one of the portfolio’s holdings. The merger will increase AMD’s capabilities in the Field Programmable Gate Array (FPGA) chip space, and the combined company should possess the potential to win additional market share in the datacenter chip market.”
1. NVIDIA Corporation (NASDAQ:NVDA)
D.E. Shaw’s Stake Value: $766 million
Percentage of D.E. Shaw’s 13F Portfolio: 0.63
Number of Hedge Fund Holders: 111
NVIDIA Corporation (NASDAQ:NVDA) is a semiconductor designer that is widely known for having pioneered the graphics processing unit (GPU). The company is the largest GPU firm in the world and it targets several industries ranging from personal computing to data centers and automotives.
NVIDIA Corporation (NASDAQ:NVDA) brought in $7.6 billion in revenue and $1.32 in non-GAAP EPS at the end of its fiscal Q4, beating Wall Street estimates for both. Mizuho raised the company’s share price target to $355 from $345 in February 2022, highlighting that NVIDIA Corporation (NASDAQ:NVDA) will grow its revenue this year.
Dr. Shaw’s D.E. Shaw owned 2.6 million NVIDIA Corporation (NASDAQ:NVDA) shares during Q4 2021, for a $766 million stake representing 0.63% of its portfolio. During the same time period, 111 out of 924 companies polled by Insider Monkey had also owned the company’s shares.
Ken Fisher’s Fisher Asset Management is NVIDIA Corporation (NASDAQ:NVDA)’s largest investor through a $1.5 billion stake that comes courtesy of 5.1 million shares.
In a third quarter 20221 investor letter, Harding Loevner had the following to say about NVIDIA Corporation (NASDAQ:NVDA):
“The proliferation of devices using chips, whether EVs, “things” in lol, or embedded systems more generally, results in the generation of oceans of data potentially needing to be stored, processed, and analyzed. NVIDIA, the leading chip designer wellknown for its graphic processing units and its complementary CUDA software ecosystem, is at the forefront of the effort to provide the analytical platform needed to unlock the full potential of such specialist processors.”
Disclosure: None. You can also take a peek at the 10 Best Dividend Aristocrats to Buy According to Hedge Funds and 10 Best Nickel Stocks to Buy Now.
