5 Best Semiconductor Stocks To Invest In Right Now

4. QUALCOMM Incorporated (NASDAQ: QCOM)

Number of Hedge Fund Holders: 73

QUALCOMM Incorporated (NASDAQ: QCOM) is a chipmaker based in California that ranks 4th on the list of 12 best semiconductor stocks to invest in right now. The company was founded in 1985 and markets CPUs, Bluetooth, Wi-Fi, contemporary RF systems, AI, and 5G technologies globally. Currently, QUALCOMM Incorporated (NASDAQ: QCOM) pays an annualized dividend of $2.72 per share and offers a 1.83% dividend yield.

On August 12, Canaccord analyst T. Michael Walkley kept a Buy rating on QUALCOMM Incorporated (NASDAQ: QCOM) and increased the firm’s price target to $225 per share from the previous $200, citing the chipmaker’s strong position in the semiconductor market. The stock has gained 14% in the past three months.

The company has a market cap of $167 billion. On July 28, the shares of QUALCOMM Incorporated (NASDAQ: QCOM) rose 3% in after-hours trading after the company reported fiscal third-quarter earnings that beat analyst expectations, owing to IoT and the continuing 5G smartphone transition. The company reported an EPS of $1.92, beating estimates by $0.24. The company’s revenue grew 3% year over year to $8 billion and beat revenue estimates by $431.76 million. 

Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in QUALCOMM Incorporated (NASDAQ: QCOM) with 364,670 shares worth more than $52.1 million. 

In its Q1 2021 investor letter, ClearBridge Investments mentioned QUALCOMM Incorporated (NASDAQ: QCOM) and shared their insights on the company. Here is what the fund said:

“Within IT, we have also increased exposure to a cyclical semiconductor industry currently working through a severe supply shortage due to several years of capacity reductions, COVID-19 shutdowns, and one-off production delays as well as demand resilience in areas like autos and smartphones. The main risk for semiconductors is short-term revenue pressure until capacity catches up with demand, which hurts wireless chipmaker Qualcomm. Looking past current constraints, we expect the industry to see a strong second half and solid growth in 2022.”