We recently compiled a list of the 10 Best Stocks to Buy According to D1 Capital’s Daniel Sundheim. In this article, we are going to take a look at where Entegris, Inc. (NASDAQ:ENTG) stands against Daniel Sundheim’s other stock picks.
Daniel Sundheim is the founder and chief investment officer of D1 Capital Partners, a global investment firm active across both public and private markets. Established in 2018, the hedge fund successfully endured the COVID-19 slump by relying on an aggressive investment strategy based on fundamental research. D1 currently manages a portfolio of $8 billion in public investments and $12 billion in private holdings. The firm has maintained a significant presence in Silicon Valley, investing in major players such as SpaceX, which accounts for about a third of its private portfolio.
Of course, staying on the winning side is nearly impossible for any investor, including billionaires like Daniel Sundheim. Back in 2022, Sundheim endured one of the most challenging years of his career as broader equity markets came under pressure from rising inflation. While the S&P 500 sank 19.4%, D1 Capital underperformed with a 30.5% decline, largely due to its substantial private-market bets on tech startups, whose valuations plummeted sharply. D1 Capital was among several high-profile hedge funds caught in this downturn. However, the firm rebounded in 2023, rising more than 19% after strategically reducing some of its private investments.
According to an investor letter received by Financial Times, D1 Capital’s public portfolio returned 44% in 2024, driven by strategic investments in European stocks. This incredible run of gains continued into 2025, with the fund gaining 7.7% in January. D1’s approach of capitalizing on valuation discounts in European markets relative to US rivals seems to have been largely successful. Speaking on this, Sundheim stated in the letter:
“We believe there is currently an extremely attractive opportunity to buy great businesses that trade on non-U.S. exchanges.”
The billionaire is also a major proponent of artificial intelligence, and believes that public companies represent the best way to capitalize on the AI boom. Speaking in late 2024, he explained that, unlike previous technological breakthroughs, AI would have an impact on almost every sector, prompting companies across industries to invest heavily in its development. Large public corporations, he noted, have the resources and scale required to effectively implement AI initiatives, giving them an advantage over smaller, more agile firms. Sundheim further stressed that companies investing in AI today are doing so with a long-term view, realizing that the substantial infrastructure necessary suggests returns are likely to come over the next decade, not the next quarter.
Our Methodology
For this list, we picked stocks from D1 Capital Partner’s 13F portfolio as of the end of the fourth quarter of 2024. These equities are also popular among elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A technician in a specialized cleanroom suit, preparing a microcontamination control pipeline.
Entegris, Inc. (NASDAQ:ENTG)
D1 Capital Partners’s Stake as of Q4: $272.7 million
Number of Hedge Fund Holders: 47
Entegris, Inc. (NASDAQ:ENTG) is a global semiconductor equipment company that primarily provides products and services that assist chip makers in maintaining the purity of their products during manufacturing processes.
Entegris, Inc. (NASDAQ:ENTG) posted fourth-quarter 2024 results that surpassed analyst expectations, with adjusted earnings per share of $0.84 and revenue of $849.84 million, both exceeding the average forecast. However, the company offered lower-than-expected guidance for the first quarter of 2025, estimating adjusted EPS of $0.64 to $0.71 and revenues of $775 million to $805 million. That said, Entegris, Inc. (NASDAQ:ENTG) has achieved a notable milestone by being included in the S&P MidCap 400 index, which may increase its visibility to investors.
Furthermore, on April 16, Entegris, Inc. (NASDAQ:ENTG) reported that its board of directors had authorized a quarterly cash dividend of $0.10 per share to be paid on May 21 to shareholders of record at the close of business on April 30.
The London Company Mid Cap Strategy stated the following regarding Entegris, Inc. (NASDAQ:ENTG) in its Q4 2024 investor letter:
“Entegris, Inc. (NASDAQ:ENTG) – ENTG underperformed during 4Q due to a more sluggish market recovery, particularly in mainstream and 3D NAND areas, as well as providing a cautious outlook. That said, its solutions for advanced technology and incremental wafer content gains should propel a faster recovery next year. ENTG is one of the most diversified players in the semi-materials industry with its size and scale. We remain attracted to the industry’s high barriers to entry, limited competitors, and high switching costs.”
Overall ENTG ranks 6th on our list of Daniel Sundheim’s other stock picks. While we acknowledge the potential for ENTG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ENTG but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks to Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
