What Billionaires Think About Semiconductor Stocks

#3. Intel Corporation (NASDAQ:INTC)

– Billionaires with Long Positions (as of March 31): 8

– Aggregate Value of Billionaires’ Holdings (as of March 31): $1.57 Billion

Moving on, semiconductor behemoth Intel Corporation (NASDAQ:INTC) saw a minor drop in its popularity among billionaire investors during the first quarter, as one fewer billionaire in our system was long the stock by the end of the quarter. Nevertheless, there were also several hedge funds that increased their stake in the company during the period, including SALT Conference host Anthony Scaramucci of Skybridge Capital, which upped its holding by 31% to 295,559 shares. In April, Intel Corporation (NASDAQ:INTC) announced that it would be undergoing restructuring initiatives to accelerate its growth in the Internet of Things (IoT) and data center space. However, this announcement hasn’t had much impact on its stock as it currently trades nearly flat year-to-date. In the last few months, there have been rumors that the company could be considering splitting off its faster-growing businesses (IoT, data center, non-volatile memory) from its PC business, creating two separate companies. However, Intel Corporation has yet to say anything official on the matter.

#2. NXP Semiconductors NV (NASDAQ:NXPI)

– Billionaires with Long Positions (as of March 31): 10

– Aggregate Value of Billionaires’ Holdings (as of March 31): $588.35 Million

Though the number of billionaires in our system long NXP Semiconductors NV (NASDAQ:NXPI) increased by two during the first quarter, the aggregate value of their holdings in it fell by $154.7 million. In the last 12 months, NXP Semiconductors’ stock has lost almost 6% of its value, but it’s currently trading up by 2% in 2016. Most analysts who track the stock feel that the decline in the last year has made it a value buy. Some of them also think that NXP Semiconductors NV is the best stock to own in the semiconductor space, as the company is better diversified than most of its peers and its finances are in much better shape. The company recently sold its Standard Products unit for $2.75 billion to a consortium of Chinese investors, which included JAC Capital and Wise Road Capital. Billionaire David Tepper of Appaloosa Management initiated a large position in NXP Semiconductors NV (NASDAQ:NXPI) during the second quarter, amounting to 1.40 million shares.

#1. Broadcom Ltd (NASDAQ:AVGO)

– Billionaires with Long Positions (as of March 31): 10

– Aggregate Value of Billionaires’ Holdings (as of March 31): $2.77 Billion

The Broadcom-Avago merger was completed in February, following which the stock of the combined entity started trading as Broadcom Ltd (NASDAQ:AVGO). Since the completion of the merger, Broadcom’s stock has appreciated by a hefty 25%. On March 31, ten billionaires in our database were shareholders of Broadcom, down by one quarter-over-quarter. However, the aggregate value of their Broadcom positions swelled by $467 million during the first quarter. On June 2, Broadcom reported its quarterly results for the first time since the merger, which were better than analysts’ expectations. While the Street had estimated Broadcom Ltd (NASDAQ:AVGO) to report EPS of $2.38 on revenue of $3.55 billion, the company delivered EPS of $2.53 and $3.56 billion in revenue. Robert W. Baird initiated coverage of Broadcom on August 12 with an ‘Outperform’ rating and $205 price target, 19% higher than the stock’s current price.

Disclosure: None