5 Cheap Semiconductor Stocks to Buy Now

4. II-VI Incorporated (NASDAQ:IIVI)

Share price as of Monday, September 20, 2021: $59.29
Number of Hedge Fund Holders: 29

II-VI Incorporated (NASDAQ: IIVI) is another American chip manufacturer headquartered in Saxonburg, Pennsylvania. As opposed to other semiconductor firms that sell chips, the company also sells machines that are responsible for manufacturing and selling semiconductor laser machines which enables its customers to process materials for a wide variety of products.

II-VI Incorporated (NASDAQ: IIVI) also supplies lasers that enable the manufacturing of vertical cavity surface emitting lasers (VCSELs). VCSELs are products that have grown alongside the communication boom ushered in by fourth generation (4G) cellular networks and the datacenter markets as they enable faster communications.

The company also provides high quality wafers to semiconductor foundries. These wafers are then printed with the billions of tiny transistors by chipmakers such as Intel Corporation and the cut up into individual chips for further processing. II-VI Incorporated (NASDAQ: IIVI) also supplies materials used to manufacture chipmaking machines.

Carillon Eagle Small Cap Growth Fund, in its Q4 2020 investor letter, mentioned II-VI Incorporated (NASDAQ: IIVI). Here is what the fund said:

“II-VI, otherwise known as “Two-Six,” is a diversified technology company with significant exposure to optical components for telecommunications infrastructure products used in data centers and next-generation 5G networks. The company provided forward revenue guidance that was better than expected, and investors are excited about a laser component that is used in mobile phones to enable 3D sensing functionality, providing the camera with depth perception.”