5 Semiconductor Stocks To Buy Today According To Peter Rathjens, Bruce Clark and John Campbell’s Arrowstreet Capital

4. Cisco Systems, Inc. (NASDAQ:CSCO)

Arrowstreet Capital’s Stake Value: $487 million

Percentage of Arrowstreet Capital’s 13F Portfolio: 0.59%

Number of Hedge Fund Holders: 58

Cisco Systems, Inc. (NASDAQ:CSCO) is an American company best known for its connectivity equipment such as routers and more that are involved in transporting and transferring data in data centers and networks. The company has also expanded into the semiconductor space after it announced in 2019 that it will sell switching chips to data center companies. Previously, Cisco Systems, Inc. (NASDAQ:CSCO) had used these chips only in its own products.

Cisco Systems, Inc. (NASDAQ:CSCO) brought in $12.7 billion in revenue and $0.84 in GAAP EPS during its second fiscal quarter, posting modest revenue growth and beating analyst estimates for both metrics. Cowen raised its share price target to $66 from $61 in February 2022, highlighting that the earnings reaffirmed modeled estimates and increasing component costs will be balanced with a price increase.

During 4Q 2021, Arrowstreet Capital had a $487 million stake in Cisco Systems, Inc. (NASDAQ:CSCO), which was in the form of 7.6 million shares. 58 out of 924 hedge funds profiled by Insider Monkey during the same time period also held the company’s shares.

Cisco Systems, Inc. (NASDAQ:CSCO)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 12.7 million shares worth $809 million.

ClearBridge Investments mentioned Cisco Systems, Inc. (NASDAQ:CSCO) in its third quarter 2021 investor letter. Here is what the firm said:

“We reinvested a portion of the proceeds into existing holding Cisco Systems, which also has highly valuable technology and an improving secular growth story with its leading position in core networking hardware, as well as in its growing software and services business. Cisco has refocused on winning share in the large and growing hyperscale market and has been investing aggressively in R&D to support growth. We believe Cisco has found new legs after previously ceding some growth opportunities in cloud while maintaining its strong presence in the carrier and enterprise markets. Cisco boasts a strong balance sheet and accelerating multiyear growth while trading at a modest multiple of earnings.”