In this article, we discuss the 5 cheap semiconductor stocks to invest in today. If you want to read our detailed analysis of these stocks, go directly to the 10 Cheap Semiconductor Stocks to Invest In Today.
5. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 66
Share Price as of December 15: $49.70
Intel Corporation (NASDAQ:INTC) markets essential technologies for smart devices. The company has plans in place to invest $100 billion into chip-making plants in the coming years and will release new central processing chips every year until 2025.
In early November, Northland analyst Gus Richard upgraded Intel Corporation (NASDAQ:INTC) stock to Market Perform from Underperform with a price target of $49, noting that a “sum-of-the-parts valuation provided support for the shares”.
At the end of the third quarter of 2021, 66 hedge funds in the database of Insider Monkey held stakes worth $6.4 billion in Intel Corporation (NASDAQ:INTC), compared to 78 in the previous quarter worth $6.7 billion.
4. STMicroelectronics N.V. (NYSE:STM)
Number of Hedge Fund Holders: 11
Share Price as of December 15: $47.60
STMicroelectronics N.V. (NYSE:STM) makes and sells semiconductor products. The stock has jumped since late October after the firm raised fiscal year guidance and increased estimates for fourth quarter earnings, saying it was targeting over 23% year-on-year growth.
On November 29, STMicroelectronics N.V. (NYSE:STM) announced the release of the ST31 secure microcontroller, a product that would facilitate advanced security for payment cards, ID cards, and transport ticketing.
At the end of the third quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $49 million in STMicroelectronics N.V. (NYSE:STM), compared to 13 in the previous quarter worth $159 million.
In its Q3 2021 investor letter, Saturna Capital, an asset management firm, highlighted a few stocks and STMicroelectronics N.V. (NYSE:STM) was one of them. Here is what the fund said:
“STMicroelectronics has a goal of becoming carbonneutral by 2027, and in 2020 reported that their greenhouse gas emissions were down 19% over the previous year. In 2020, STMicroelectronics was the only semiconductor company with targets approved by the Science Based Targets Initiative for limiting warming to 1.5 degrees Celsius, and their 2027 net-zero goal is recognized as one of the most ambitious in the industry. As greenwashing presents a growing concern within the ESG community, and as more and more funds engage in re-branding exercises that have little to do with pursuing sustainable investment practices among others, our definition of sustainability includes financial sustainability, most often demonstrated by intelligent capital allocation leading to solid cash flows that can sustain a business without resorting to excessive leverage.”
3. ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS)
Number of Hedge Fund Holders: 5
Share Price as of December 15: $32.21
ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS) markets semiconductor assembly and testing services. On December 10, the company revealed revenue figures for the month of November, reporting a 9 year-on-year increase in revenue.
ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS) stock stands to benefit from the increase in demand for semiconductors in 2022 as production interruptions become less frequent and business resumes full throttle.
At the end of the third quarter of 2021, 5 hedge funds in the database of Insider Monkey held stakes worth $56 million in ChipMOS TECHNOLOGIES INC. (NASDAQ:IMOS), up from 2 in the preceding quarter worth $55 million.
2. eMagin Corporation (NYSE:EMAN)
Number of Hedge Fund Holders: 4
Share Price as of December 15: $1.23
eMagin Corporation (NYSE:EMAN) markets virtual imaging products. The rise in demand for micro-displays, one of the premier products of the firm, has helped the stock register multiple highs this year. Redditor interest in the stock has also soared on the back of mentions of the firm on the WallStreetBets forum.
In September, eMagin Corporation (NYSE:EMAN) announced that it had finalized the details of a $33 million contract with the US Department of Defense for high-end micro displays that use the direct patterning technology of the company.
At the end of the third quarter of 2021, 4 hedge funds in the database of Insider Monkey held stakes worth $1.8 million in eMagin Corporation (NYSE:EMAN), compared to 6 in the preceding quarter worth $4 million.
1. Amkor Technology, Inc. (NASDAQ:AMKR)
Number of Hedge Fund Holders: 25
Share Price as of December 15: $22.26
Amkor Technology, Inc. (NASDAQ:AMKR) provides semiconductor packing and test services. The company started paying a dividend in 2020 and recently declared a quarterly dividend of $0.05 per share, an increase of 25% from the previous dividend of $0.04 per share.
On November 4, Amkor Technology, Inc. (NASDAQ:AMKR) announced plans to build a smart factory in Vietnam. The firm will invest up to $250 million in the project that aims to provide Advanced System in Package assembly and test solutions to the semiconductor industry.
Among the hedge funds being tracked by Insider Monkey, California-based investment firm SW Investment Management is a leading shareholder in Amkor Technology, Inc. (NASDAQ:AMKR) with 2.4 million shares worth more than $59 million.
You can also take a peek at Warren Buffett Is Selling These 10 Stocks and 10 Best Nickel Stocks to Buy Now.
