The semiconductor industry has launched a bit of a comeback today, as most of the semiconductor companies have witnessed an increase in their share price on heavy trading volume today. The list includes major players including Intel Corporation (NASDAQ:INTC), Micron Technology, Inc. (NASDAQ:MU), and Advanced Micro Devices, Inc. (NASDAQ:AMD), which we’ll look at in this article, as well as Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), which gained just under 1% today. The shares of Intel Corporation are trading 1.33% higher at $30.59, whereas Micron Technology’s shares are up 1.46%. Advanced Micro Devices is leading the way at a 3.93% increase in its share price, to $2.52.
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Earlier today, Intel Corporation (NASDAQ:INTC) announced some upper management changes, including the departure of its president, Renee James. Further, the McAfee division of the chipmaker will work under the Intel Security organization and the leadership of Chris Young, Intel’s General Manager. While discussing these management changes, Brian Krzanich, CEO of Intel Corporation, said, “We are aligning our leadership structure to continue to become more efficient in order to deliver the benefits of our strategy even faster than before.” Smart money has been somewhat bearish towards Intel Corporation (NASDAQ:INTC) of late, as hedge funds reduced their investments marginally to $5.21 billion by the end of the first quarter, from $5.45 billion in holdings one quarter previously. Total investors with positions also dropped slightly during this time, to 61 from 62. Jean-Marie Eveillard of First Eagle Investment Management held a large position in the chipmaker of 28.84 million shares with a market value of $901.95 million. However, we need to take into account the drop of 16.81% in the shares of Intel Corporation year-to-date. The world’s largest chipmaker is suffering because of an ailing PC industry but is looking for growth opportunities in other areas. Its recent acquisition of Altera Corporation (NASDAQ:ALTR) will help the company gain exposure in multiple markets, from communications to consumer electronics.
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.
Disclosure: None
