In this piece we will take a look at the top five semiconductor stocks that are popular on Reddit. For more stocks, industry background, and other details, head on to These 10 Semiconductor Stocks Are Popular On Reddit.
5. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 71
Broadcom Inc. (NASDAQ:AVGO) is a semiconductor company that engages in the design and sales of signal processing chips. These chips are used in a wide variety of devices such as smartphones, data centers, and notebooks. The firm is headquartered in San Jose, California, United States.
Broadcom Inc. (NASDAQ:AVGO) is currently acquiring cloud services provider VMware. This deal is set to boost the firm’s already impressive portfolio of products that sees more than 99.9% of all internet traffic pass through a Broadcom Inc. (NASDAQ:AVGO) product, more than 19,000 patents, and hundreds of top global companies as clients.
JPMorgan shared a positive outlook for the cloud computing sector in July 2022, highlighting that capital expenditure in data centers will grow by 25% this year, and bode well for Broadcom Inc. (NASDAQ:AVGO). Insider Monkey took a look at 912 hedge fund portfolios for the first quarter of this year and found out that 71 had bought the company’s shares.
Out of these, Ken Fisher’s Fisher Asset Management is Broadcom Inc. (NASDAQ:AVGO)’s largest investor. It owns 1.4 million shares that are worth $894 million.
In its Q1 2022 investor letter, ClearBridge Investments had the following to say about Broadcom Inc. (NASDAQ:AVGO):
“However, ClearBridge portfolio companies are responding by supporting their workforces and showing resilience in adapting and thriving. Semiconductor companies ClearBridge owns and engages with have been successful in advancing vaccinations in their global supply chains. In Malaysia, for example, Broadcom has taken part in PIKAS, a public-private partnership vaccination program focusing on the workforce in critical manufacturing sectors. By the summer of 2021 Broadcom was able to get over 90% of workers in its Penang factory at least one dose of vaccine, and roughly 73% fully vaccinated. Companies in the program also pay the administration cost for vaccinations including cases where the employee is no longer employed by the company before full immunization of the employee.”
4. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 76
Intel Corporation (NASDAQ:INTC) is the world’s largest chip manufacturer. Headquartered in Santa Clara, California, United States, the company is widely credited with having invented the modern day transistor, which is a simple circuit that forms the backbone of a chip.
Intel Corporation (NASDAQ:INTC) is one chip company that is investing heavily in its future. During its fiscal first quarter the company spent 17% of its revenue on research and development (R&D) and owing to its key position as the only leading edge Western chip manufacturer, the company received more than $7 billion in funds from the EU last year to build new chip plants and is hoping to receive U.S. government support as well.
Susquehanna reduced Intel Corporation (NASDAQ:INTC)’s share price target to $40 from $42 in July 2022, as it outlined that a weaker personal computing market might not bode well for the chip firm. Insider Monkey’s 912 hedge fund survey for Q1 2022 revealed that 76 had invested in the company.
Intel Corporation (NASDAQ:INTC)’s largest investor is Seth Klarman’s Baupost Group which owns 16 million shares that are worth $822 million.
Baron Funds mentioned Intel Corporation (NASDAQ:INTC) in its first quarter of 2022 investor letter, outlining that:
“Intel’s (NASDAQ:INTC) capital spending process is guided by a process they appropriately named “copy exactly.” This means that they attempt to “copy exactly” what they have already built and attempt to improve tried and true processes iteratively.”
3. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 81
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest contract semiconductor manufacturer. The company takes orders from other firms such as Apple, Inc. (NASDAQ:AAPL) and builds their chips with its latest technologies. The firm is headquartered in Hsinchu, Taiwan.
The Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) expects to grow its revenues by more than 30% this year despite a downturn in the semiconductor industry. It also commands the highest market share for a contract chip maker, as data for this year’s first quarter revealed that TSMC had controlled 54.9% of the market, as it gained 1.6% in market share.
Susquehanna lowered Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s share price target to $88 from $90 in July 2022, as it worried about the impact of a highly expected chip inventory correction. Insider Monkey scanned 912 hedge fund holdings for this year’s March quarter to find out that 81 had bought the company’s shares.
Ken Fisher’s Fisher Asset Management is Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s largest investor through a $2.7 billion stake that comes via 26 million shares.
In a fresh Q2 2022 investor letter, Wedgewood Partners mentioned Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and stated:
“Taiwan Semiconductor detracted from performance despite a business performance that saw revenue accelerate to over +30% growth. The Company is one of the few fabs in the world that is capable of manufacturing leading-edge integrated circuits (IC). The Company’s leading-edge capacity is being absorbed by high-performance computing applications, particularly by Apple, which has become an integrated circuit powerhouse over the past decade. The Company’s aggressive investment in leading-edge equipment, tight development with fabless IC designers, and embrace of open development libraries should continue to foster a superior competitive position and attractive long-term growth.”
2. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 83
Advanced Micro Devices, Inc. (NASDAQ:AMD) is an American semiconductor designer and seller that sells central processing units (CPUs), graphics processing units (GPUs), and custom processors. The company is headquartered in Santa Clara, California.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the strongest growing stocks in the semiconductor industry, as it has appreciated by close to 3,000% over the course of the last decade. Continuing its trend of consecutive revenue growth, the company hopes to further grow its revenue by 60% this year. Its revenue for the first quarter of this year had marked an even stronger growth of 71%.
BMO Capital raised Advanced Micro Devices, Inc. (NASDAQ:AMD)’s share price target to $115 from $100 in July 2022, as it outlined that not only is the company on track for sustained market share growth against Intel but that its enterprise computing segment is generating strong customer interest. Out of the 912 hedge funds tracked by Insider Monkey for Q1 2022, 83 had held a stake in Advanced Micro Devices, Inc. (NASDAQ:AMD).
Out of these, Ken Fisher’s Fisher Asset Management is Advanced Micro Devices, Inc. (NASDAQ:AMD)’s largest investor. It owns 24 million shares that are worth $2.6 billion.
Here is what Carillon Tower Advisers had to say about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2021 investor letter:
“Advanced Micro Devices (AMD) supplies semiconductor chips for central processing units (CPUs) and graphic processing units (GPUs). The firm has been gaining share against its primary competitor in the datacenter server CPU space, as this rival has been unable to match the design and manufacturing capabilities of AMD and its partners. Investors are also looking forward to the closing of the previously announced merger with a semiconductor manufacturer that is another one of the portfolio’s holdings. The merger will increase AMD’s capabilities in the Field Programmable Gate Array (FPGA) chip space, and the combined company should possess the potential to win additional market share in the datacenter chip market.”
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 102
NVIDIA Corporation (NASDAQ:NVDA) designs and sells semiconductors referred to as graphics processing units (GPUs). These products are used in a wide variety of applications, such as video games, video processing, visualization, data centers, and cloud computing. It is based in Santa Clara, California, United States.
NVIDIA Corporation (NASDAQ:NVDA) has one of the strongest product portfolios in the industry right now, as it designs and sells nearly every product needed in data center and cloud computing. This lends its enterprise computing segment a total addressable market (TAM) of roughly $500 billion.
Baird lowered the company’s share price target to $150 from $165 in July 2022, due to concerns about inventory buildups at retailers for personal computing GPUs. Insider Monkey analyzed 912 hedge fund portfolios for this year’s first quarter and found out that 102 had invested in the company.
NVIDIA Corporation (NASDAQ:NVDA)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 7.3 million shares that are worth $1.9 billion.
RiverPark Funds had the following to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2022 investor letter:
“Nvidia is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming- focused chip vendor to one of the largest semiconductor/software vendors in the world, dominating the core secular growth markets of gaming, data centers and professional visualization. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.
We expect future growth to remain robust as NVDA chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality and advanced artificial intelligence. As with NFLX, we took advantage of the over 40% recent drop in the company’s shares over the last several months to initiate a small position.”
Disclosure: None. You can also take a look at 10 Best Undervalued Automobile Stocks to Buy Now and Analyst Are Cutting Estimates on These 10 Tech Stocks.
