Semiconductor stocks have been some of the hottest stocks in the tech sector in recent years, with popular stocks such as Nvidia Corp. (ticker: NVDA) and Advanced Micro Devices (AMD) up more than 1,000 percent each in the past three years. But the higher share prices climb, the more important stock selection becomes. Data from Bank of America indicates active fund managers have been dialing back their exposure to the semiconductor group in the past year, but a handful of stocks are still widely held. Here’s a look at the nine most popular semiconductor stocks among fund managers.
Texas Instruments (TXN)
Texas Instruments stock may not have kept pace with Nvidia or AMD in the past few years, but its shares are up a respectable 21 percent over the past year. Bank of America analyst Vivek Arya says Texas Instruments’ diversification and history of consistent execution make it a top pick for long-term investors, and fund managers seem to agree. TXN stock is held in 33.3 percent of actively-managed funds, making it the most popular semiconductor stock among fund managers. Bank of America has a “buy” rating and $133 price target for TXN stock.
Broadcom has had a difficult 2018. Its potential merger with Qualcomm (QCOM) was blocked by the U.S. government, and Broadcom’s $18.9 billion buyout of CA Technologies (CA) has been widely criticized. Arya is among the critics. He says the CA acquisition will be an unwanted distraction and will dilute Broadcom’s top-line growth. With AVGO stock down 3.4 percent in 2018, fund managers are betting on a comeback. AVGO stock is held in 31.3 percent of active funds. Bank of America has a “buy” rating and $300 price target for AVGO stock.
Intel Corp. (INTC)
Intel is not among the high-flyers in the semiconductor group in 2018. But with semiconductor stock valuations soaring, fund managers seem to still prefer Intel’s relative safety and 2.5 percent dividend. Intel is one of the most widely-held semiconductor stock among fund managers, with 30.6 percent of all funds owning some INTC stock. However, Arya says Intel’s 10-nanometer processor delays and its chip security issues have created opportunities for competitors such as AMD. Bank of America has a “neutral” rating and $56 price target for INTC stock.
Nvidia Corp. (NVDA)
Fund managers’ top three semiconductor holdings are…
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!