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Do you like to follow smart money buying and selling trends? For a closer look at stocks currently favored by smart money institutional investors, we ran a screen.

We began by screening the semiconductors industry for stocks that appear undervalued relative to earnings growth, with PEG below 1.

We then screened these names 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.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for up to six of the 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 names will outperform like the smart money expects? Use this list as a starting point for your own analysis.

List sorted by net institutional purchases over the last quarter as a percent of share float.

1. Spreadtrum Communications Inc. (SPRD): Operates as a fabless semiconductor company that designs, develops, and markets baseband processor and RF transceiver solutions for wireless communications and mobile television markets. Market cap at $827.58M, most recent closing price at $17.31. PEG at 0.42. Net institutional purchases in the current quarter at 3.8M shares, which represents about 12.65% of the company's float of 30.03M shares.

2. Atmel Corporation (ATML): Designs, develops, manufactures, and markets a range of semiconductor integrated circuit products. Market cap at $3.35B, most recent closing price at $7.54. PEG at 0.49. Net institutional purchases in the current quarter at 39.1M shares, which represents about 9.05% of the company's float of 432.16M shares.

3. LTX-Credence Corporation (LTXC): Engages in the design, manufacture, marketing, and servicing of automated test equipment solutions for the wireless, computing, automotive, and digital consumer markets. Market cap at $318.07M, most recent closing price at $6.51. PEG at 0.99. Net institutional purchases in the current quarter at 3.9M shares, which represents about 8.57% of the company's float of 45.53M shares.

4. RDA Microelectronics, Inc. (RDA): Designs, develops, and markets radio-frequency and mixed-signal semiconductors for cellular, broadcast, and connectivity applications. Market cap at $475.13M, most recent closing price at $11.16. PEG at 0.83. Net institutional purchases in the current quarter at 459.9K shares, which represents about 7.98% of the company's float of 5.76M shares.

5. Alpha & Omega Semiconductor, Ltd. (AOSL): Engages in the design, development, and supply of a range of power semiconductors worldwide. Market cap at $243.29M, most recent closing price at $9.78. PEG at 0.79. Net institutional purchases in the current quarter at 1.3M shares, which represents about 7.54% of the company's float of 17.24M shares.

6. IPG Photonics Corporation (IPGP): Manufactures fiber lasers and amplifiers for use in a range of markets, such as materials processing, advanced technologies, telecommunications, and medical applications. Market cap at $2.27B, most recent closing price at $44.40. PEG at 0.72. Net institutional purchases in the current quarter at 2.9M shares, which represents about 7.12% of the company's float of 40.75M shares.

7. Entegris, Inc. (ENTG): Develops, manufactures, and supplies products and materials used in processing and manufacturing in the semiconductor and other high-technology industries worldwide. Market cap at $1.09B, most recent closing price at $7.91. PEG at 0.92. Net institutional purchases in the current quarter at 7.6M shares, which represents about 6.69% of the company's float of 113.63M shares.

8. NVE Corp. (NVEC): Engages in the development and sale of devices that use spintronics, a nanotechnology that relies on electron spin to acquire, store, and transmit information. Market cap at $273.2M, most recent closing price at $55.71. PEG at 0.97. Net institutional purchases in the current quarter at 225.7K shares, which represents about 5.16% of the company's float of 4.37M shares.

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

Source: 8 Undervalued Semiconductors Being Bought Up By Hedge Funds