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Top Semiconductor Companies Loved By Hedge Funds: Intel Corporation (INTC), Broadcom Corporation (BRCM)

Tied with Broadcom is Marvell Technology Group Ltd. (NASDAQ:MRVL), the hard disk drive chipmaker. Marvell’s key advantages are its robust patent portfolio and strong positioning in the HDD market, but it is also making headway in the WiFi chipset arena. Microsoft’s Surface tablet has a Marvell WiFi chip, which was a move that surprised some tech analysts. At undervalued book (0.9x), cash (2.3x) and forward earnings (12.0x) multiples, investors can still snatch up a company that is up nearly 20% since the start of 2013. A dividend yield of 2.7% isn’t a bad payout for income-seekers either.

In fourth, we have NVIDIA Corporation (NASDAQ:NVDA), with 29 hedge funds holding long positions. Nvidia focuses on graphics chip technology used in everything from PCs to PlayStations. The company grew its bottom line by a decent 4.3% a year over the past half-decade, but the sell-side expects this growth to accelerate over the next five years, averaging close to 10% annually. At a PEG near 1.4, Nvidia is cheaper than Marvell (1.9) and Broadcom (1.9), so there’s clear value here. Going forward, bulls can also be excited about the company’s Tegra 4 mobile processor, which was introduced at CES.

Last but certainly not least, fifth on our list is Micron Technology, Inc. (NASDAQ:MU), with 28 funds invested. Micron may be known for its dynamic random-access memory technology, but the company has been diversifying its operations, with ventures into the NAND flash memory arena. A recent acquisition of Japanese Elpida Memory is expected to boost Micron’s bottom line. Analysts expect EPS to grow by a whopping 192% over the next year, and they forecast five-year annual growth to come in around 13-14%.

For a longer look at Micron Technology, check out all of the hedge funds invested in the company on Insider Monkey, and for more related coverage, continue reading below:

Will Intel’s Earnings Move the Dow?

Is Broadcom Destined for Greatness?

Michael Price’s Cheap Stock Picks

Disclosure: I have no positions in any of the stocks mentioned in this article

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