5 Semiconductor Stocks to Watch as Uncertainty Grows

In this article, we will look at the 5 semiconductor stocks to watch as macroeconomic uncertainty grows. If you want to explore more semiconductor stocks that can either gain or lose in the coming months based on industry dynamics, you can read “Their Visibility is Zero”: 10 Semiconductor Stocks to Watch as Uncertainty Grows.

5. Applied Materials, Inc. (NASDAQ:AMAT)

Number of Hedge Fund Holders: 67

Applied Materials, Inc. (NASDAQ:AMAT) has a high-consumer exposure as its semiconductor chips are used in computers, smartphones, TVs, and other consumer electronics. The company is highly vulnerable to a potential economic slowdown. Regardless, the company reported a strong beat on August 18 when it announced earnings for the third quarter of fiscal 2022. The company reported a revenue of $6.52 billion and beat expectations by $252.41 million. The company reported earnings per share of $1.94 and outperformed consensus by $0.16.

On August 22, Citi analyst Atif Malik trimmed his price target on Applied Materials, Inc. (NASDAQ:AMAT) to $150 from $160 but reiterated a Buy rating on the shares. The analyst noted that demand for the company’s wafer fab equipment remains above supply.

At the end of Q2 2022, 67 hedge funds held stakes in Applied Materials, Inc. (NASDAQ:AMAT) worth $3.68 billion. Of those, Generation Investment Management was the leading shareholder with stakes worth $555 million.