I've called semiconductors "the new oil" for several years, and I believe the sector is an excellent pick-and-shovel play to capitalize on every significant technology megatrend for the future. In today's video, I explain my reasoning and provide analysis on one of my top semicon
If you're interested in broad exposure to the Technology - Broad segment of the equity market, look no further than the Vanguard Information Technology ETF (VGT), a passively managed exchange traded fund launched on 01/26/2004.
Intel (NASDAQ: INTC) and AMD (NASDAQ: AMD), the world's largest producers of x86 CPUs for PCs and data centers, are both considered bellwethers of the semiconductor sector. AMD is also one of the top suppliers of discrete graphics processing units (GPUs).
The best performing sector as of midday Monday is the Technology & Communications sector, up 2.0%. Within that group, NVIDIA Corp (Symbol: NVDA) and Advanced Micro Devices Inc (Symbol: AMD) are two large stocks leading the way, showing a gain of 7.0% and 6.9%, respectively
What happened
Semiconductor stocks started off the week on a strong note Monday, with Intel (NASDAQ: INTC) gaining 2.3%, Nvidia (NASDAQ: NVDA) up 6.3%, and Advanced Micro Devices (NASDAQ: AMD) advancing most of all, up 6.9%, as of 10:25 a.m. ET.
In early trading on Monday, shares of Tesla topped the list of the day's best performing components of the S&P 500 index, trading up 7.1%. Year to date, Tesla has lost about 1.7% of its value.
Nvidia (NVDA) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
In today's video, Jose Najarro and Nick Rossolillo discuss Nvidia (NASDAQ: NVDA), Advanced Micro Devices (NASDAQ: AMD), and Invesco PHLX Semiconductor ETF (NASDAQ: SOXQ). Jose has an interesting approach to getting exposure in chip stocks, but does Nick agree? Check out the short
Shares of big tech companies lost substantial value in the past year due to macro challenges (high inflation and rising interest rates). While inflation has moderated a bit, economic uncertainty and the Fed’s hawkish stance continue to pose challenges. Despite headwinds, hedge fund managers have accumulated shares of Alphabet (
NASDAQ:GOOGL
), Microsoft (
NASDAQ:MSFT
), Amazon (
NASDAQ:AMZN
), Nvidia (
NASDAQ:NVDA
), and Apple (
NASDAQ:AAPL
) in the last three months.
Using TipRanks’ Hedge Fund Trading Activity tool (it provides
hedge fund signals based on data from Form 13-F), let’s find out which of these big tech stocks hedge funds bought in bulk.
Big Tech: Which Stock Did Hedge Funds Buy the Most?
Our tool shows that hedge funds bought more GOOGL stock than any other stock in the last three months. Per the tool,
hedge funds bought 129.4M shares of GOOGL. Several hedge fund managers increased their holdings in Google's stock. The list includes Bridgewater Associates’
Ray Dalio, Caxton Associates LP’s
Andrew Law, and PYA Waltman Capital, LLC’s
J. William Waltman, Jr.
Besides for GOOGL stock,
hedge funds acquired 33.2M shares of Microsoft. Further, they
bought 26.3M shares of Amazon.
During the same period,
hedge funds bought 9.6M shares of Nvidia. Furthermore, they increased their exposure in Apple stock
by adding 671.9K shares.
While hedge funds bought GOOGL stock in bulk, should investors follow?
Is GOOGL a Buy, Sell, or Hold?
Along with hedge fund managers, GOOGL stock also has positive signals from Wall Street analysts. It has received 32 unanimous Buy recommendations for a Strong Buy consensus rating on TipRanks. Moreover, these analysts’ average price target of $126.09 implies 44.37% upside potential.
Tigress Financial analyst
Ivan Feinseth sees the recent pullback in GOOGL stock as a “major buying opportunity.”
Feinseth is upbeat about the ongoing strength in GOOGL’s Cloud and Search segments. Moreover, he expects the company to benefit from its investments in AI (Artificial Intelligence).
Overall, with positive indicators from hedge funds and analysts, GOOGL stock has a maximum Smart Score of “Perfect 10.” (
Stay abreast of the
best that TipRanks’ Smart Score
has to offer.)
Bottom Line
Hedge fund managers are known to deliver market-beating returns. Thus, retail investors could benefit from following their trades. As for GOOGL stock, positive signals from hedge funds and analysts and the momentum in its core business make it an attractive long-term play.
Find out which
stock the biggest hedge fund managers are buying right now.
Disclosure
What happened
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Many investors keep apprised of Warren Buffett's investing decisions by monitoring the quarterly Form 13Fs filed by Berkshire Hathaway. But those disclosures only tell part of the story. Berkshire owns New England Asset Management (NEAM), a financial institution with $5.9 billion
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Well-chosen growth stocks can create fortunes for their shareholders. The key is to identify huge and rapidly expanding industries -- and the businesses that are competing and winning within them.