In this piece, we will take a look at the five semiconductor stocks to buy today according to Israel Englander’s Millennium Management. For more stocks and background on the investment firm, head on to 10 Semiconductor Stocks to Buy Today According to Israel Englander’s Millennium Management.
5. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Millennium Management’s Stake Value: $96 million
Percentage of Millennium Management’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 75
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest contract chip manufacturer which is responsible for servicing the chip needs of some of the world’s largest technology companies. It offers its customers the latest chip manufacturing technologies that are backed by its patented intellectual property.
Millennium Management owned a $96 million stake in the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) by the end of the fourth quarter of last year. This was through it owning 802,349 shares and it represented 0.04% of the multi billion dollar portfolio. During the same time period, 75 of the 924 hedge funds polled by Insider Monkey also held a stake in the company.
By the end of its fiscal Q4, the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) earned $15.7 billion in revenue and $1.15 in GAAP EPS, in a strong set of results that saw it beat analyst estimates for both. The company is currently expanding its chip production all over the globe by building new plants in the United States, European Union, and Japan.
The Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s largest investor is Ken Fisher’s Fisher Asset Management. It owns a massive $3.1 billion stake via 25.9 million shares.
L1 Capital mentioned the Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its third quarter 2021 investor letter. Here is what the fund said:
“Even though they are not majority State owned and we would expect many of China’s technology champions to continue to grow strongly, outcomes for shareholders may be unsatisfactory… The Fund has retained its investment in Taiwan Semiconductor Manufacturing Company (TSMC) which is well placed to maintain its global leadership in semiconductor manufacturing. Due to geopolitical risks, we limit the position size of TSMC in the Fund.”
4. Intel Corporation (NASDAQ:INTC)
Millennium Management’s Stake Value: $110 million
Percentage of Millennium Management’s 13F Portfolio: 0.05%
Number of Hedge Fund Holders: 74
Intel Corporation (NASDAQ:INTC) is widely heralded as the pioneer of the modern day microprocessor. The company became one of the first in the world to develop and sell what would become today’s integrated circuit processor. Over the years, Intel Corporation (NASDAQ:INTC) has successfully reduced its transistor sizes and improved performance.
Intel Corporation (NASDAQ:INTC) reported $19.5 billion in revenue and $1.09 in non-GAAP EPS for its fiscal Q4, beating analyst estimates for both. The company is currently racing to mass produce chips based on the latest manufacturing processes through its facilities located in the United States.
Mr. Englander’s hedge fund owned 2.1 million Intel Corporation (NASDAQ:INTC) shares during Q4 2021, in a $110 million stake which made up 0.05% of its investment portfolio. 74 of the 924 hedge funds polled by Insider Monkey during the same time period also held the company’s shares.
Seth Klarman’s Baupost Group is Intel Corporation (NASDAQ:INTC)’s largest investor according to Insider Monkey’s research. It owns 18 million shares for a $928 million stake.
Third Point Management mentioned Intel Corporation (NASDAQ:INTC) in its fourth quarter 2021 investor letter. Here is what the fund said:
“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 Advanced Micro Devices, Inc. (NASDAQ:AMD), Nvidia, Apple, and, most recently, Micron’s stellar Chief Financial Officer, David Zinsner.
We are encouraged by Intel Corporation (NASDAQ:INTC)’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 Corporation (NASDAQ:INTC)’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. Texas Instruments Incorporated (NASDAQ:TXN)
Millennium Management’s Stake Value: $152 million
Percentage of Millennium Management’s 13F Portfolio: 0.07%
Number of Hedge Fund Holders: 57
Texas Instruments Incorporated (NASDAQ:TXN) is an American semiconductor firm that offers several kinds of products. These include power controllers and signals processors, which are used in an assortment of technology gadgets.
Millennium Management owned 810,056 Texas Instruments Incorporated (NASDAQ:TXN) shares by the end of last year’s fourth quarter. These were worth $152 million, and the stake represented 0.07% of the firm’s investment portfolio. Insider Monkey’s research covering 924 hedge funds for the same time period revealed that 57 had also owned the company’s shares.
As its fiscal Q4 came to an end, Texas Instruments Incorporated (NASDAQ:TXN) brought in $4.8 billion in revenue and $2.27 in GAAP EPS, pleasing Wall Street and beating analyst estimates for both.
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 Texas Instruments Incorporated (NASDAQ:TXN) in its third quarter 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.”
2. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Millennium Management’s Stake Value: $251 million
Percentage of Millennium Management’s 13F Portfolio: 0.12%
Number of Hedge Fund Holders: 70
Advanced Micro Devices, Inc. (NASDAQ:AMD) is an American semiconductor designer which targets the personal computing and enterprise computing markets through its products. Additionally, the company also sells custom processors. Its products include central processing units (CPUs), graphics processing units (GPUs), and systems on chips (SoCs).
Advanced Micro Devices, Inc. (NASDAQ:AMD) posted $4.83 billion in revenue and $0.92 in non-GAAP EPS for its fiscal fourth quarter, showing strong growth and beating analyst estimates. Research firm Bernstein upgraded the company’s price target to $150 in February 2022, outlining that Advanced Micro Devices, Inc. (NASDAQ:AMD) has performed remarkably well over the years.
Millennium Management owned 1.7 million Advanced Micro Devices, Inc. (NASDAQ:AMD) shares during Q4 2021, for a $251 million stake that represented 0.12% of its portfolio. During the same time period, 70 out of the 924 hedge funds polled by Insider Monkey had also held a stake in the company.
Advanced Micro Devices, Inc. (NASDAQ:AMD)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 19.9 million shares worth $2.8 billion.
Carillon Tower Advisers mentioned Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2021 investor letter and stated that:
“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)
Millennium Management’s Stake Value: $1.1 billion
Percentage of Millennium Management’s 13F Portfolio: 0.58%
Number of Hedge Fund Holders: 111
NVIDIA Corporation (NASDAQ:NVDA) is one of the largest semiconductor firms in the world when it comes to market capitalization. The company has seen significant investor interest of late due to its successful targeting of growing markets. NVIDIA Corporation (NASDAQ:NVDA) designs and sells graphics processing units (GPUs) that are used by general and enterprise users and it is also working on central processing units (CPUs).
NVIDIA Corporation (NASDAQ:NVDA) raked in $7.6 billion in revenue and $1.32 in non-GAAP EPS for its fiscal fourth quarter, allowing it to beat analyst estimates for both. Its price target was set to $245 by Goldman Sachs in March 2022, with the bank stating that artificial intelligence and machine learning present strong growth opportunities for the company.
Mr. Englander’s hedge fund had a $1.1 billion stake in NVIDIA Corporation (NASDAQ:NVDA) as the fourth quarter of last year came to an end. This came through 3.8 million shares and it represented 0.58% of the firm’s investment portfolio. A Q4 2021 Insider Monkey poll of 924 hedge funds showed that 111 had also owned the company’s shares.
Ken Fisher’s Fisher Asset Management is NVIDIA Corporation (NASDAQ:NVDA)’s largest investor. It owns a $1.5 billion stake via 5.1 million shares.
In a third quarter 20221 investor letter, Harding Loevner mentioned NVIDIA Corporation (NASDAQ:NVDA) and outlined:
“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 Stocks to Buy Now According to Wayne Yu’s BCK Capital and Gillson Capital Stock Portfolio: 10 Best Dividend Stocks.
