Top 5 Stocks to Invest in According to Alan Fournier’s Pennant Capital

4. Intel Corporation (NASDAQ:INTC)

Mr. Fournier’s Stake Value: $29.7 million

Percentage of  Pennant Capital’s 13F Portfolio: 8.43%

Number of Hedge Fund Holders: 78

Intel Corporation (NASDAQ:INTC) is one of the oldest semiconductor manufacturers in the world and it is the only American company capable of manufacturing chips with advanced manufacturing processes. It is known for its central computing units (CPUs) that have allowed it to become a household name.

Mr. Fournier’s Pennant Capital held 557,672 shares of Intel Corporation (NASDAQ:INTC) by the end of the third quarter. These were worth $29.7 million and represented 8.43% of the firm’s portfolio. Susquehanna increased its price target to $55 in an October 2021 analyst note, expressing approval for Intel’s execution and future market opportunities.

Intel Corporation (NASDAQ:INTC) earned $18.1 billion in non-GAAP revenue and $1.71 in non-GAAP EPS, beating analyst estimates for the EPS during its third quarter. During the previous quarter, 78 out of the 873 hedge funds surveyed by Insider Monkey held a stake in the company.

Intel Corporation (NASDAQ:INTC)’s largest investor is Ken Fisher’s Fisher Asset Management who owns a whopping 32 million shares worth $1.7 billion.

In its first-quarter 2021 investor letter, Alger mentioned Intel Corporation (NASDAQ:INTC). Here is what the fund said:

“Short exposure to Intel also detracted from performance. Intel designs and manufactures semiconductors for the computing and communications industries. Intel’s proprietary intellectual strength and manufacturing prowess versus the competition is deteriorating, which is causing the company to lose market share and profit opportunities. The short position detracted from portfolio returns as the share price reacted positively to the announcement of Pat Gelsinger being hired as chief executive officer, a stronger-than-anticipated quarterly earnings report driven by unusually robust PC sales that we believe are unsustainable and the unveiling of “Intel Unleashed,” a new long-term program to help improve manufacturing and spur innovation. This program involves opening two fabrication plants in Arizona, which confirms Intel’s commitment to continue as an integrated design manufacturer. Importantly, Intel continues to experience issues with its next generation server chips which are disadvantaging Intel versus the competition.”