Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message| ()  

If you're interested in investing in the growth of the tech sector, here are some ideas to help get started on your search.

We ran a screen on stocks in the semiconductor industry of the tech sector for those rallying above their 20-day, 50-day, and 200-day moving averages. We then screened these stocks for those with significant net institutional buying over the current quarter, indicating that institutional investors such as hedge fund managers expect these stocks to outperform.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks will outperform like hedge funds expect? Use this list as a starting point for your own analysis.

1. ASM International NV (ASMI): Engages in researching, developing, manufacturing, marketing, and servicing equipment and materials used to produce semiconductor devices. The stock is currently rallying 5.18% above its 20-day moving average, 17.51% above its 50-day MA, and 15.69% above its 200-day MA. Net institutional purchases in the current quarter at 1.9M shares, which represents about 4.33% of the company's float of 43.89M shares.

2. Avago Technologies Limited (AVGO): Engages in the design, development, and supply of analog semiconductor devices worldwide. The stock is currently rallying 1.70% above its 20-day moving average, 10.37% above its 50-day MA, and 4.78% above its 200-day MA. Net institutional purchases in the current quarter at 9.2M shares, which represents about 3.78% of the company's float of 243.54M shares.

3. Diodes Incorporated (DIOD): Makes and distributes standard semiconductor products to manufacturers in the consumer electronic, computer, communications, industrial, and automotive markets. The stock is currently rallying 1.55% above its 20-day moving average, 12.38% above its 50-day MA, and 10.22% above its 200-day MA. Net institutional purchases in the current quarter at 2.0M shares, which represents about 5.73% of the company's float of 34.91M shares.

4. Inphi Corporation (IPHI): Operates as a fabless provider of high-speed analog semiconductor solutions for the communications and computing markets, providing high signal integrity at leading-edge data speeds that are designed to address bandwidth bottlenecks in networks, minimize latency in computing environments, and enable the rollout of next generation communications infrastructure. The stock is currently rallying 2.61% above its 20-day moving average, 14.74% above its 50-day MA, and 10.35% above its 200-day MA. Net institutional purchases in the current quarter at 1.7M shares, which represents about 8.48% of the company's float of 20.05M shares.

5. MIPS Technologies Inc. (MIPS): Provides industry-standard processor architectures and cores that power various home entertainment, communications, networking, and portable multimedia products. The stock is currently rallying 4.59% above its 20-day moving average, 20.28% above its 50-day MA, and 3.55% above its 200-day MA. Net institutional purchases in the current quarter at 3.0M shares, which represents about 6.79% of the company's float of 44.18M shares.

6. Mellanox Technologies, Ltd. (MLNX): Engages in the design, development, marketing, and sale of interconnect products primarily in North America, Israel, Europe, and Asia. The stock is currently rallying 4.02% above its 20-day moving average, 6.93% above its 50-day MA, and 13.95% above its 200-day MA. Net institutional purchases in the current quarter at 3.5M shares, which represents about 14.82% of the company's float of 23.62M shares.

7. MagnaChip Semiconductor (MX): Designs and manufactures analog and mixed-signal semiconductor products for high-volume consumer applications. The stock is currently rallying 15.59% above its 20-day moving average, 29.94% above its 50-day MA, and 12.14% above its 200-day MA. Net institutional purchases in the current quarter at 1.9M shares, which represents about 14.45% of the company's float of 13.15M shares.

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

Source: 7 Rallying Semiconductor Stocks Hedge Funds Are Buying Up