Semiconductor Stocks: 5 Biggest Losers in September

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In this article, we discuss semiconductor stocks and the 5 biggest losers in September. If you want to read about some more semiconductor stocks, go directly to Semiconductor Stocks: 10 Biggest Losers in September.

5. Micron Technology, Inc. (NASDAQ:MU)

Number of Hedge Fund Holders: 69   

Percentage Decline in Share Price Over Past Month as of September 21: 14%

Micron Technology, Inc. (NASDAQ:MU) designs, manufactures, and sells memory and storage products worldwide. On September 12, Sanjay Mehrotra, the CEO of the firm, told news agency Reuters that the company was breaking ground on the newly announced $15 billion factory in Idaho and would unveil another US-based plant soon. The executive added that both plants will produce dynamic random access, or DRAM chips, used for data centers, PCs, and other electronics.

On September 21, Wells Fargo analyst Aaron Rakers maintained an Overweight rating on Micron Technology, Inc. (NASDAQ:MU) stock lowered the price target to $75 from $90, noting the setup into the fourth quarter results of the firm was negative. 

At the end of the second quarter of 2022, 69 hedge funds in the database of Insider Monkey held stakes worth $2.2 billion in Micron Technology, Inc. (NASDAQ:MU), compared to 78 in the preceding quarter worth $3.4 billion.

In its Q2 2022 investor letter, Meridian Funds, an asset management firm, highlighted a few stocks and Micron Technology, Inc. (NASDAQ:MU) was one of them. Here is what the fund said:

“Micron Technology, Inc. (NASDAQ:MU) is a leader in the production of DRAM and NAND memory. We invested in the stock in the third quarter of 2019 during a cyclical downturn in the memory industry. Our rationale was that, while the memory industry is cyclical, we believed there are strong secular drivers in place that will lead to higher peaks and long-term growth. Our secular thesis is based on our conviction that the quest for ever-increasing compute speeds will increasingly rely on memory to solve bottlenecks and that increased memory content in nearly everything from mobile phones to automobiles will drive demand. Micron’s stock traded lower during the quarter due to macroeconomic concerns that led to lower earnings expectations. We increased our stake in the company, as we believe our secular thesis remains intact. We wanted to take advantage of what we view as temporary cyclical concerns that caused the stock to trade at less than 10x reasonable trough earnings per share (EPS) estimates and less than 7x recent peak EPS.”

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