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.”
4. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 71
Percentage Decline in Share Price Over Past Month as of September 21: 12%
QUALCOMM Incorporated (NASDAQ:QCOM) engages in the development and commercialization of foundational technologies for the wireless industry. On September 2, the company announced that it would be partnering with tech giant Meta Platforms to develop custom virtual reality chips. The latter claims that the former will develop and produce custom chipsets based on the Snapdragon platform for the Quest VR devices. The chipsets will not be exclusive to Meta but specifically customized for the Quest devices.
On July 28, Wells Fargo analyst Gary Mobley maintained an Equal Weight rating on QUALCOMM Incorporated (NASDAQ:QCOM) stock and raised the price target to $150 from $135, appreciating the second quarter earnings beat of the firm.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Citadel Investment Group is a leading shareholder in QUALCOMM Incorporated (NASDAQ:QCOM), with 5 million shares worth more than $644 million.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and QUALCOMM Incorporated (NASDAQ:QCOM) was one of them. Here is what the fund said:
“Market strength continued in the fourth quarter, with only the communication services sector down in the Russell 1000 Value Index. Portfolio returns benefited from the strong performance of semiconductor maker QUALCOMM Incorporated (NASDAQ:QCOM), which has executed exceptionally well in pursuing the transition to 5G, growing both content and share due to its leadership position in cellular technology. The chipmaker recently outlined a number of peripheral growth opportunities outside of mobile markets, including automotive (where it hopes to leverage its strong presence in the automotive infotainment space into advanced driver assistance systems), Internet of Things (including opportunities in the PC market, VR/AR market, and factory automation) and radio frequency (where mmWave adoption globally, including China, would drive substantial upside).”
3. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 72
Percentage Decline in Share Price Over Past Month as of September 21: 10%
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) manufactures, tests, and sells integrated circuits and other semiconductor devices. On September 14, Nikkei Asia reported that tech giant Apple would be using chips made by TSM in the iPhones and MacBooks next year. The report further revealed that the A17 mobile processor will be mass-produced using the N3E chipmaking tech and is expected to be available in the second half of 2023.
On July 14, investment advisory Susquehanna maintained a Neutral rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) stock and lowered the price target to $88 from $90. Analyst Mehdi Hosseini issued the ratings update.
At the end of the second quarter of 2022, 72 hedge funds in the database of Insider Monkey held stakes worth $9.2 billion in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), compared to 81 in the preceding quarter worth $10 billion.
In its Q2 2022 investor letter, Mercator International Opportunity fund, an asset management firm, highlighted a few stocks and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was one of them. Here is what the fund said:
“Another example of this buyers’ strike is Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) (1.81%), down 40% from its high and trading at less than 15 times forward earnings. When TSM announced better-than-expected earnings growth of 67% in the second quarter with no slowdown in sight, the stock barely gained a few percentage points. No matter how good the news, buyers are not showing up. Yet.”
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 84
Percentage Decline in Share Price Over Past Month as of September 21: 22%
NVIDIA Corporation (NASDAQ:NVDA) provides graphics, compute, and networking solutions. On September 21, Jensen Huang, the CEO of the firm, eased investor concerns around the US export restrictions to China, saying that restrictions placed on Nvidia by the US government should likely not impact the company that much. The executive even added that the new regulations would allow the chipmaker to expand presence in the Chinese market that had a large space for semi firms.
On September 21, Morgan Stanley analyst Joseph Moore maintained an Equal Weight rating on NVIDIA Corporation (NASDAQ:NVDA) stock with a price target of $182, noting that the higher GPU prices was one of the biggest takeaways from a recent company event.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in NVIDIA Corporation (NASDAQ:NVDA), with 17.7 million shares worth more than $2.7 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:
“At the company-specific level, there was a broad correction across the entire portfolio. While four of our holdings contributed to performance, the contribution to absolute returns was less than 100bps combined, as unfortunately none of them were large enough to move the needle. We had 16 investments detracting over 100bps each with NVIDIA (NASDAQ:NVDA), our second largest detractor, costing the Fund 254bps.
NVIDIA’s stock was hit even harder, down 44.4%, impacted by concerns over the health of the consumer, dramatic declines in crypto, and COVID-related lockdowns in China. Despite the sell-off and the increased near-term volatility in its gaming business, NVIDIA’s revenues grew 46% year-over-year with 48% operating margins, driven by continued strength in its data center business as companies across industries adopt AI and ML…(read more)
1. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 87
Percentage Decline in Share Price Over Past Month as of September 21: 20%
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor company worldwide. On August 2, the company posted earnings for the second quarter of 2022, reporting earnings per share of $1.05, beating market estimates by $0.01. The revenue over the period was $6.55 billion, up more than 70% compared to the revenue over the same period last year and beating estimates by $20 million. The firm guided full-year revenue to more than $100 million above consensus estimates of $26.1 billion.
On September 15, Mizuho analyst Vijay Rakesh maintained a Buy rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) stock and lowered the price target to $125 from $140, noting that semi hyperscale remains strong into the end of 2022 with modest pushbacks.
At the end of the second quarter of 2022, 87 hedge funds in the database of Insider Monkey held stakes worth $4.8 billion in Advanced Micro Devices, Inc. (NASDAQ:AMD), compared to 83 in the previous quarter worth $6.9 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Advanced Micro Devices, Inc. (NASDAQ:AMD) was one of them. Here is what the fund said:
“Advanced Micro Devices, Inc.(NASDAQ:AMD) is a global fabless semiconductor company focusing on high-performance computing technology, software, and products. AMD designs leading high-performance central and graphics processing units (known as CPUs and GPUs) and integrates them with hardware and software to build differentiated solutions for customers.
AMD has been gaining meaningful share in personal computing and server end markets over the past several years driven by the performance of its processors and technology and strong execution against its technology roadmap, and we believe share gains will continue over the coming years from a combination of AMD’s continued advancements and Intel’s stumbles in developing its leading-edge technology (…read more)
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