Semiconductor Stocks Have Big Day, Rebound From Last Week’s Slump

Micron Technology, Inc. (NASDAQ:MU) has rebounded slightly after its steep drop in share price last week. What is surprising is the analysts’ sentiment surrounding the stock, as 27 analysts out of 35 are recommending a ‘Buy’ for Micron Technology, with a 12-month average price target of $29.97, though not all of these ratings are fresh. One rating that is fresh is that of Jefferies, suggesting investors to buy the shares aggressively, as it is expecting the current DRAM cost headwinds to pass in the next six months. The firm has a price target of $36 on the stock, suggesting immense potential upside given that it’s slipped under the $20 level. Hedge fund managers have not been as optimistic about Micron, with the number of hedge fund investors at the end of the first quarter declining to 100 from the previous quarter’s close of 113 investors. The aggregate investments in the company were also down greatly, to $6.96 billion from $8.21 billion. David Einhorn’s Greenlight Capital was among the major shareholders of the company, with 33.55 million shares valued at $910.20 million.

Advanced Micro Devices, Inc. (NASDAQ:AMD) lead the pack today, with its shares being up partly because of the persistent rumors of its potential acquisition by Microsoft Corporation (NASDAQ:MSFT). However, analysts at Bernstein are calling it nothing more than a rumor, stating that a buyout wouldn’t add much value to Microsoft. Further, Advanced Micro Devices, Inc. (NASDAQ:AMD) has lost its market share over the years and acquiring its loss-making businesses doesn’t add up in their (Bernstein’s) books. Despite today’s gains, the shares of the chipmaker are still down by 4.75% year-to-date. However, the smart money maintains a different opinion about the stock, as the number of hedge fund managers holding positions in Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of the first quarter rose to 15 with net investments of $36.33 million, against previously-held investments of $28.34 million made by 12 investment managers. David E Shaw’s D.E.Shaw owned 4.85 million shares valued at $13.00 million.

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