11 Undervalued Semiconductor Stocks To Buy According to Hedge Funds

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In this article, we will be taking a look at 11 undervalued semiconductor stocks to buy according to hedge funds. To skip our detailed analysis of the semiconductor sector, you can go directly to see the 5 Undervalued Semiconductor Stocks To Buy According to Hedge Funds.

Semiconductor Industry Outlook

The semiconductor space is now more exciting than it ever has been before. While 2023 was a year of struggle for most industries, including the semiconductor industry, 2024 promises a growth spurt. This March, KPMG released its Global Semiconductor Industry Outlook for 2024, where it noted some of the key things to look forward to when it comes to semiconductors while highlighting significant challenges posing a threat to this space. KPMG surveyed 172 semiconductor executives for its report, 85% of whom stated that they anticipate the industry to see double-digit revenue growth in 2024. The main growth drivers for the semiconductor industry today continue to be the automotive industry, artificial intelligence, and microprocessors. While these trends and developments continue to propel semiconductors upward, a majority of semiconductor executives believe that there is a lack of skilled talent in the industry, which poses a significant risk to its growth.

The Blackwell Chip

Perhaps the most significant recent event in the semiconductor industry was the GTC Conference hosted by semiconductor giant NVIDIA Corporation (NASDAQ:NVDA), this March. The company's CEO, Jensen Huang, made several major announcements in his keynote at the conference, but perhaps the most anticipated and exciting one was the unveiling of the company's latest chip, the Blackwell, named after David Blackwell, who was the first African American inducted into the National Academy of Sciences, and the first African American tenured professor at the University of California, Berkeley. In his announcement during his keynote, Huang compared the Blackwell chip to its predecessor, the Hopper, which had been the most advanced GPU in the world before the Blackwell's creation. Huang highlighted that the Blackwell chip comprises 208 billion transistors, followed by these comments on the chip:

"There's a small line between two dyes. This is the first time two dyes have been abutted like this together, in such a way that the two dyes think it's one chip. There's 10 terabytes of data between it, 10 terabytes per second, so that these two sides of the Blackwell chip have no clue which side they're on. There's no memory locality issues, no cache issues, it's just one giant chip. And so, when we were told that Blackwell's ambitions were beyond the limits of physics, the engineer said 'so what?' And so this is what happened."