Market Overview

4 Semiconductor Stocks Grossly 'Underowned', According To Bank Of America

Share:
4 Semiconductor Stocks Grossly 'Underowned', According To Bank Of America
Related AMD
Gamers Delight: A New E-Sports ETF Is Here
How Millennials, Baby Boomers Are Reacting To Market Volatility
Dow Jones Futures: More Leaders Break Support In Stock Market Correction (Investor's Business Daily)
Related NVDA
Goldman Sachs Adds Nvidia To 'Conviction Buy' List
Gamers Delight: A New E-Sports ETF Is Here
Cash In On Tight Labor Markets With These (Automation) Growth Stocks (Seeking Alpha)

Despite a huge multi-year runs from semiconductor stocks, a new report from Bank of America revealed that a handful of popular semiconductor stocks are still dramatically under-owned among active fund managers. The latest findings are based on Bank of America’s Equity Strategy data.

Bank of America analyst Vivek Arya said active managers have dialed back their relative weighing in the tech sector from peak levels of 1.25 times in August 2017 to only 1.18 times in early March.

“The decline was largely driven by Semis, which fell to its lowest relative weight in last 20 months to 1.12x vs peak of 1.46x in Mar’17,” Arya said.

Here’s a rundown of some of the key findings in the report.

Top Names

  • Nvidia Corporation (NASDAQ: NVDA) remains under-owned, with just 26 percent of fund managers holding the stock with an average weighting of 0.94 times. Weighting has declined by 13 percent in the past three months.
  • Intel Corporation (NASDAQ: INTC) is also underweighted by fund managers, with only 27.7 percent ownership at an average weighing of 0.83 times. Intel’s weighting bottomed at just 0.3 times back in 2013. While it has steadily increased since that time, it remains well below its industry peers.
  • Advanced Micro Devices, Inc. (NASDAQ: AMD) is barely owned by active managers, with only 2.7 percent of funds holding the stock. AMD’s weighting is also a miniscule 0.07 times and falling.
  • Microchip Technology Inc. (NASDAQ: MCHP) ownership is down 6 percent in the most recent quarter and stands at only 9 percent with an average weighting of 0.6 times.

Meanwhile, Qorvo Inc (NASDAQ: QRVO) ownership remains extremely concentrated with only 10 owners accounting for 61 percent of outstanding shares.

Ratings And Targets

Bank of America maintains the following ratings and targets on the stocks mentioned:

  • AMD: Buy rating, $18 target.
  • Intel: Buy rating, $52 target.
  • Microchip: Buy rating, $110 target.
  • Nvidia: Buy rating, $300 target.
  • Qorvo: Neutral rating, $85 target.

Related Links:

A Look At AMD's Options Activity, Short Interest

Semi Execs Present Optimistic View At Morgan Stanley's TMT Conference

Latest Ratings for AMD

DateFirmActionFromTo
Oct 2018BairdDowngradesOutperformNeutral
Oct 2018BarclaysMaintainsUnderweightUnderweight
Sep 2018Northland SecuritiesDowngradesOutperformMarket Perform

View More Analyst Ratings for AMD
View the Latest Analyst Ratings

Posted-In: Bank of America Vivek AryaAnalyst Color Reiteration Top Stories Analyst Ratings Tech Best of Benzinga

 

Related Articles (INTC + AMD)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
AAPLWedbushInitiates Coverage On310.0
DHTJP MorganUpgrades0.0
DISBarclaysUpgrades130.0
DXCMGoldman SachsUpgrades125.0
ORLYJP MorganUpgrades398.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

5 Misconceptions About The $20 Trillion Of U.S. Debt

45 Stocks Moving In Thursday's Mid-Day Session