10 Inexpensive Semiconductor Stocks To Invest In Today

In this article, we discuss the 10 Inexpensive Semiconductor Stocks to Invest in Today. If you wish to ignore our detailed analysis of these stocks, go directly to the 5 cheap semiconductor stocks to invest in today

Data published by World Semiconductor Trade Statistics reveals that global semiconductor sales will reach $ 600 billion in 2022, increasing at a compound annual growth rate of nearly 9% as demand for semiconductors increases globally. The Semiconductor Industry Association, a trade body that represents more than 98% of U.S. chipmakers by revenue and nearly two-thirds of those based outside the United States, says chip sales have increased to a rate of 26% this year, despite pressure from the supply chain. hampered production.

Some of the major semiconductor stocks like NVIDIA Corporation (NASDAQ:NVDA), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) and Advanced Micro Devices, Inc. (NASDAQ:AMD), among others, have all skyrocketed this year due to increased demand for high-end chips following a faster-than-expected post-pandemic economic recovery. The valuations of these companies are now in the hundreds of billions, making them for the most part beyond the reach of average investors. For these investors, cheaper chip stocks offer better value for money.

Our methodology

Firms that trade at relatively low prices relative to their growth potential were selected for the list. Real-time stock prices, as of December 15, are mentioned alongside other details for clarity.

In order to provide readers with some context for their investment choices, company fundamentals and analyst ratings for equities have also been taken into account. Hedge fund sentiment was also included as a classifier.

Hedge fund sentiment around each stock was calculated using data from 867 hedge funds tracked by Insider Monkey.

10 Inexpensive Semiconductor Stocks To Invest In Today

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Inexpensive Semiconductor Stocks To Invest In Today

10. Micron Technology (NASDAQ:UM)

Number of hedge fund holders: 63

Share price on December 15: $ 83.29

Micron Technology (NASDAQ: MU) markets memory and storage products. The company plans to spend $ 150 billion over the next decade to expand memory and storage production and research and development in the area.

Evercore ISI analyst CJ Muse recently raised the Micron Technology (NASDAQ: MU) share price target to $ 120 versus $ 100 and maintained an outperformance rating, calling the shares “structurally. dumped ”.

At the end of the third quarter of 2021, 63 hedge funds in Insider Monkey’s database had $ 3.8 billion in stakes in Micron Technology (NASDAQ: MU).

Just like NVIDIA Corporation (NASDAQ: NVDA), Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM), and Advanced Micro Devices, Inc. (NASDAQ: AMD), Micron Technology (NASDAQ: MU) is one of the stocks that attracts attention of growth investors.

In its Q1 2021 letter to investors, Bonsai Partners, an asset management firm, highlighted a few stocks and Micron Technology (NASDAQ:UM) was one of them. Right here this is what the fund says:

“Micron is a manufacturer of semiconductor memory chips. Micron appreciated 17.3% in the quarter.

As the semiconductor cycle is in full swing, sentiment continued to improve for major DRAM and NAND vendors. DRAM spot prices continue to rise due to supply shocks in industry and sustained demand levels that continue to outstrip supply.

As a result, Micron posted improving results for the first fiscal quarter, raised its intra-quarter guidance for the second fiscal quarter and offered a strong guidance for the third fiscal quarter in terms of both growth and margins.

While the cyclical nature of DRAM has not changed, the cycles themselves continue to become milder, resulting in long-term economic improvement in these companies. Micron is now profitable on an ongoing basis, with industry players considerably stronger than just five years ago.

The biggest negative surprise of the quarter came from Micron’s exit from its XPoint 3D hybrid memory business. The company also announced its decision to sell its companion plant in Utah. Fortunately, this development does not change the investment thesis much since 3D XPoint was an option ticket for future growth. While it’s unfortunate that this product didn’t work, now is a great time to sell a fabulous one, so maybe this is a blessing in disguise? “

9. Lattice Semiconductor Corporation (NASDAQ:LSCC)

Number of hedge fund holders: 19

Share price on December 15: $ 75.02

Lattice Semiconductor Corporation (NASDAQ: LSCC) manufactures and sells semiconductor products. The company increased revenue throughout the year with other chip inventories and also grew impressively in the communications, IT, industrial and automotive sectors.

On November 15, Lattice Semiconductor Corporation (NASDAQ: LSCC) announced the acquisition of Mirametrix, a software company, in an all-cash transaction. Mirametrix provides advanced artificial intelligence solutions for computer vision applications.

At the end of the third quarter of 2021, 19 hedge funds in Insider Monkey’s database had holdings worth $ 366 million in Lattice Semiconductor Corporation (NASDAQ: LSCC).

In its letter to investors for the fourth quarter of 2020, Artisan Partners Limited Partnership, an asset management company, put forward a few stocks and Lattice Semiconductor Corporation (NASDAQ:LSCC) was one of them. Right here this is what the fund says:

“Lattice Semiconductor is a supplier of Field Programmable Gate Array (FPGA) chips used in personal computers, 5G infrastructure, routers and switches, and servers, to name a few. The company now has a new board of directors and a new management team – the current CEO joined the leading provider of Advanced Micro Devices in late 2018 – which has embarked on a journey of product transformation. The company refreshed its FPGA products in the small / low power segment of the market, focusing more on high ROI use cases focused on low power consumption applications, falling behind the two market leaders focused on high-end, Xilinx and Intel Corporation. In addition to delivering FPGA chips to data centers and new 5G infrastructure – particularly exciting opportunities given that these end markets are and likely will continue to benefit from strong secular tailwinds – we believe the company is well positioned to exploit low power / reprogrammable chips as well as industrial chips and automotive end markets.

8. MaxLinear, Inc. (NASDAQ:MXL)

Number of hedge fund holders: 24

Share price on December 15: $ 72.25

MaxLinear, Inc. (NASDAQ: MXL) provides system-on-chip solutions. The company saw its revenue increase thanks to the growth of WiFi 6 / 6E and content gains in on-premise equipment. The company also appears to be executing its growth plans effectively.

Craig-Hallum analyst Richard Shannon recently reiterated a buy note on MaxLinear, Inc. (NASDAQ: MXL) stock and raised the price target to $ 90 from $ 80, touting the potential of the company in the fiber sector.

At the end of the third quarter of 2021, 24 hedge funds in Insider Monkey’s database had $ 155 million in stakes in MaxLinear, Inc. (NASDAQ: MXL), up from 21 in the previous quarter of worth $ 134 million.

7. Axcelis Technologies, Inc. (NASDAQ:ACLS)

Number of hedge fund holders: 22

Share price on December 15: $ 63.47

Axcelis Technologies, Inc. (NASDAQ: ACLS) markets ion implantation and other processing services related to the semiconductor industry. The company recently beat market estimates for third-quarter earnings per share and revenue by $ 0.10 million and $ 6 million respectively.

In July, Axcelis Technologies, Inc. (NASDAQ: ACLS) announced that it had shipped several high-energy, high-intensity Purion systems to a semiconductor smelter in China. The systems produce mature process technology.

Among the hedge funds tracked by Insider Monkey, a New York-based investment firm Management Rima Senvest is a major shareholder of Axcelis Technologies, Inc. (NASDAQ: ACLS) with 1.8 million shares worth over $ 88 million.

6. Ultra Clean Holdings, Inc. (NASDAQ:UCTT)

Number of hedge fund holders: 19

Share price on December 15: $ 51.59

Ultra Clean Holdings, Inc. (NASDAQ: UCTT) provides tools and subsystems for the semiconductor market. The stock has consistently outperformed the broader semiconductor market over the past few years and is expected to continue on that path until 2022.

On September 17, investment adviser DA Davidson maintained a buy rating on Ultra Clean Holdings, Inc. (NASDAQ: UCTT) stock with a price target of $ 75, noting the strong data points of the. industry and showing a lower valuation than its peers in the market place.

Among hedge funds tracked by New York-based Insider Monkey Royce & Associates is a major shareholder of Ultra Clean Holdings, Inc. (NASDAQ: UCTT) with 753,066 shares valued at over $ 32 million.

Along with NVIDIA Corporation (NASDAQ: NVDA), Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM) and Advanced Micro Devices, Inc. (NASDAQ: AMD), Ultra Clean Holdings, Inc. (NASDAQ: UCTT) is one of the stocks on the radar of elite investors.

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Disclosure. Nothing. 10 Inexpensive Semiconductor Stocks To Invest In Today was originally published on Insider Monkey.

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