5 Undervalued Semiconductor Stocks To Buy According to Hedge Funds

In this article, we will be taking a look at 11 undervalued semiconductor stocks to buy according to hedge funds. To skip our detailed analysis of the semiconductor sector, you can go directly to see the 11 Undervalued Semiconductor Stocks To Buy According to Hedge Funds.

5. Microchip Technology Incorporated (NASDAQ:MCHP)

Number of Hedge Fund Holders: 43

P/E Ratio: 20.2

Microchip Technology Incorporated (NASDAQ:MCHP) develops smart, connected, and secure embedded control solutions. It offers microcontrollers, mixed-signal microprocessors, and specialized microcontrollers.

As of March 14, Stifel analysts hold a Buy rating and $94 price target on Microchip Technology Incorporated (NASDAQ:MCHP).

At the end of the fourth quarter, 43 hedge funds were long Microchip Technology Incorporated (NASDAQ:MCHP), with a total stake value of $839.5 million.

Weitz Investment Management mentioned Microchip Technology Incorporated (NASDAQ:MCHP) in its third-quarter 2023 investor letter:

“We added a new position in Microchip Technology, Inc., (NASDAQ:MCHP) to the Fund during the quarter. Microchip is a leading provider of mixed signal microcontrollers and analog semiconductors to a broad range of industrial, data center, automotive, communication and consumer appliance customers. The company enjoys favorable product characteristics that help drive strong profitability, and it benefits from several long-wave demand tailwinds such as electronification, automation, and growth in data communications. While Microchip is not immune from semiconductor cycles, its cash flows have been durable through cycles. The multi-year outlook is solid, and we think the company is poised to further boost per-share value growth through increasing share repurchases at discounted prices.