Introduction:
The semiconductor equipment sector remains a vibrant and crucial component of the technology industry, supporting the development and manufacturing of advanced semiconductor chips essential for various applications. In this article, we delve into the top 11 semiconductor equipment stocks of 2024, based on hedge fund sentiment, market performance, and industry outlook.
Follow us on Linkedin for everything around Semiconductors & AI
Top 11 Semiconductor Equipment Stocks of 2024
1. Applied Materials, Inc. (NASDAQ: AMAT)
Number of Hedge Fund Holders: 70
Applied Materials, Inc., a California-based industry leader, is renowned for its development, manufacturing, and marketing of semiconductor wafer fabrication equipment. With a staggering 70 hedge fund holders, AMAT stands out as a top pick among investors. Analysts remain bullish on AMAT, with a consensus Buy rating and a promising average price target, signaling substantial upside potential. A recent price target increase by Argus analyst Jim Kelleher further solidifies its position as a favored investment choice.
Read More: ASML Overtakes Applied Materials as World’s No. 1 Chip Equipment Maker in 2023 by Revenue
2. Lam Research Corporation (NASDAQ: LRCX)
Number of Hedge Fund Holders: 67
Lam Research Corporation, another California-based giant, specializes in the manufacturing and servicing of semiconductor processing systems. With 67 hedge fund holders, LRCX emerges as a dominant force in the semiconductor equipment sector. The company’s commitment to shareholder value is evident through its quarterly dividend declarations, offering an attractive dividend yield for investors. Fisher Asset Management’s significant investment underscores confidence in Lam Research’s future prospects.
Read More: Lam Research & IISc to train faculty to teach VLSI manufacturing
3. ASML Holding N.V. (NASDAQ: ASML)
Number of Hedge Fund Holders: 62
ASML Holding N.V., a Dutch company, is at the forefront of semiconductor manufacturing equipment development and production. The company’s impressive fourth-quarter performance, coupled with billionaire Ken Fisher’s substantial stake, positions ASML as a compelling investment opportunity. Analysts remain optimistic about ASML’s growth trajectory, as reflected in the robust hedge fund sentiment and favorable price targets.
Read More: ASML Exceeds Expectations in Q4, but Buckles Up for a Flat Sales in 2024
4. KLA Corporation (NASDAQ: KLAC)
Number of Hedge Fund Holders: 55
KLA Corporation‘s prowess in developing process equipment and control solutions solidifies its standing as a top semiconductor equipment stock. The company’s stellar second-quarter earnings performance and dividend declaration underscore its financial resilience and commitment to shareholders. With 55 hedge fund holders, KLAC garners significant attention from investors seeking exposure to the semiconductor industry.
5. Entegris, Inc. (NASDAQ: ENTG)
Number of Hedge Fund Holders: 36
Entegris, Inc., specializing in micro-contamination control products, remains an integral player in the semiconductor and related industries. Despite a slightly lower hedge fund count compared to its peers, Entegris’ substantial combined stake value and select equity group’s top investment position underscore its attractiveness as an investment avenue.
6. Teradyne, Inc. (NASDAQ: TER)
Number of Hedge Fund Holders: 33
Teradyne, Inc., serving the semiconductor industry with automation equipment, boasts a notable presence among hedge fund investors. The company’s recent dividend declaration and positive analyst outlook further enhance its appeal as an investment option in the semiconductor equipment sector.
7. Axcelis Technologies, Inc. (NASDAQ: ACLS)
Number of Hedge Fund Holders: 28
Axcelis Technologies, Inc., specializing in semiconductor equipment manufacturing, enjoys attention from both investors and analysts. With a robust fourth-quarter earnings report and positive analyst sentiment, ACLS positions itself as a promising investment opportunity.
8. Amkor Technology, Inc. (NASDAQ: AMKR)
Number of Hedge Fund Holders: 26
Amkor Technology, Inc., providing turnkey packaging and test services to clients, stands out as a noteworthy player in the semiconductor equipment sector. The company’s strong fourth-quarter results and dividend declaration reflect its resilience and commitment to shareholder value.
9. IPG Photonics Corporation (NASDAQ: IPGP)
Number of Hedge Fund Holders: 25
IPG Photonics Corporation, specializing in fiber lasers and diode lasers manufacturing, garners attention from hedge fund investors and analysts alike. With a recent coverage initiation and solid hedge fund sentiment, IPGP presents itself as a compelling investment opportunity in the semiconductor equipment space.
10. Onto Innovation Inc. (NYSE: ONTO)
Number of Hedge Fund Holders: 23
Onto Innovation Inc., formed after a merger, offers process control solutions for the semiconductor industry. The company’s positive earnings performance and forward guidance, coupled with favorable investor sentiment, position ONTO as an attractive investment option in the semiconductor equipment sector.
11. Nova Ltd. (NASDAQ: NVMI)
Number of Hedge Fund Holders: 21
Nova Ltd., an Israeli company specializing in dimensional and materials metrology solutions, rounds up the top 11 semiconductor equipment stocks of 2024. With increasing hedge fund investments and positive analyst coverage, NVMI presents itself as a noteworthy contender in the semiconductor equipment landscape.
Conclusion
The semiconductor equipment sector offers diverse investment opportunities for those seeking exposure to the dynamic technology industry. With industry leaders like Applied Materials, Lam Research, and ASML Holding leading the pack, alongside promising contenders such as Nova Ltd. and Onto Innovation Inc., investors have a plethora of options to explore. However, as with any investment, thorough research and consultation with financial professionals are essential to making informed decisions in navigating the complexities of the semiconductor equipment market.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Investors should conduct thorough research and consult with financial professionals before making investment decisions.
Reference: Yahoo Finance
