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Do you like to follow the buying trends of smart money investors? We ran a screen to find semiconductor stocks currently in favor by hedge fund managers.

We began by screening the semiconductor industry for stocks that are rallying above their 20-day, 50-day, and 200-day moving averages, indicating that these stocks have strong upward momentum.

We then screened for those with bullish sentiment from institutional investors, with significant net institutional purchases over the last quarter representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these names to outperform into the future.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Do you think hedge funds are calling it right on these names? Use this list as a starting point for your own analysis.

List sorted by net institutional purchases as a percent of share float.

1. First Solar, Inc. (NASDAQ:FSLR): Manufactures and sells solar modules using a thin-film semiconductor technology. Market cap at $2.13B, most recent closing price at $24.47. Net institutional purchases in the current quarter at 11.5M shares, which represents about 19.62% of the company's float of 58.62M shares. The stock is currently trading 1.99% above its 20-day moving average, 6.11% above its 50-day moving average, and 12.47% above its 200-day moving average.

2. MagnaChip Semiconductor Corporation (NYSE:MX): Designs and manufactures analog and mixed-signal semiconductor products for high-volume consumer applications. Market cap at $452.02M, most recent closing price at $12.57. Net institutional purchases in the current quarter at 2.5M shares, which represents about 14.07% of the company's float of 17.77M shares. The stock is currently trading 5.35% above its 20-day moving average, 4.10% above its 50-day moving average, and 12.78% above its 200-day moving average.

3. Monolithic Power Systems Inc. (NASDAQ:MPWR): Designs, develops, manufactures, and markets analog and mixed-signal semiconductors. Market cap at $697.54M, most recent closing price at $19.66. Net institutional purchases in the current quarter at 1.8M shares, which represents about 5.74% of the company's float of 31.36M shares. The stock is currently trading 3.78% above its 20-day moving average, 62.84% above its 50-day moving average, and 12.78% above its 200-day moving average.

*Institutional data sourced from Fidelity, all other data sourced from Finviz.

Source: Hedge Funds Love These 3 Outperforming Semiconductor Stocks