US-China Semiconductor War: 5 Stocks to Watch

In this article, we will be taking a look at the US-China semiconductor war: 5 stocks to watch. To read our detailed analysis of the rivalry between American and Chinese tech companies, and the stocks impacted by this rivalry, you can go directly to see the US-China Semiconductor War: 10 Stocks to Watch.

5. Micron Technology, Inc. (NASDAQ:MU)

Number of Hedge Fund Holders: 69

Micron Technology, Inc. (NASDAQ:MU) is an IT company working to design and manufacture memory and storage products for sale worldwide. The company is based in Boise, Idaho.

On September 13, Exane BNP Paribas’ analyst Karl Ackerman initiated coverage of Micron Technology, Inc. (NASDAQ:MU) shares with an Outperform rating. The analyst also placed a $75 price target on the stock.

While Micron Technology, Inc. (NASDAQ:MU) was among the stocks that fell by more than 1% after Nancy Pelosi’s visit to Taiwan, it is also one of the stocks that stand to gain during heightened tensions between the US and China. The company is set to benefit from new federal funding for chip-makers, sanctioned by the Biden administration.

Our hedge fund data shows 69 hedge funds long Micron Technology, Inc. (NASDAQ:MU) in the second quarter, with a total stake value of $2.2 billion.

Meridian Funds, managed by ArrowMark Partners, mentioned Micron Technology, Inc. (NASDAQ:MU) in its second quarter 2022 investor letter. Here’s what the firm said:

“Micron Technology, Inc. (NASDAQ:MU) is a leader in the production of DRAM and NAND memory. We invested in the stock in the third quarter of 2019 during a cyclical downturn in the memory industry. Our rationale was that, while the memory industry is cyclical, we believed there are strong secular drivers in place that will lead to higher peaks and long-term growth. Our secular thesis is based on our conviction that the quest for ever-increasing compute speeds will increasingly rely on memory to solve bottlenecks and that increased memory content in nearly everything from mobile phones to automobiles will drive demand. Micron’s stock traded lower during the quarter due to macroeconomic concerns that led to lower earnings expectations. We increased our stake in the company, as we believe our secular thesis remains intact. We wanted to take advantage of what we view as temporary cyclical concerns that caused the stock to trade at less than 10x reasonable trough earnings per share (EPS) estimates and less than 7x recent peak EPS.”