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Interested in the high-growth prospects of the semiconductors industry? We ran a screen to dig deeper into this sphere.

We began by screening the semiconductors industry for stocks with strong liquidity, with current ratios above 3.

We then screened for stocks 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 in the future.

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

click for interactive chart

Tool provided by Kapitall (www.kapitall.com).

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

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

1. Lam Research Corporation (LRCX): Engages in designing, manufacturing, marketing, and servicing semiconductor processing equipment used in the fabrication of integrated circuits. Market cap at $4.23B, most recent closing price at $35.45. Current ratio at 3.09. Net institutional purchases in the current quarter at 16.3M shares, which represents about 12.23% of the company's float of 133.26M shares.

2. FSI International Inc. (FSII): Designs, manufactures, markets, and supports equipment used in the fabrication of microelectronics, such as advanced semiconductor devices. Market cap at $241.8M, most recent closing price at $6.17. Current ratio at 4.12. Net institutional purchases in the current quarter at 2.3M shares, which represents about 6.64% of the company's float of 34.62M shares.

3. 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 $3.17B, most recent closing price at $62.72. Current ratio at 5.81. Net institutional purchases in the current quarter at 2.7M shares, which represents about 6.61% of the company's float of 40.84M shares.

4. TriQuint Semiconductor, Inc. (TQNT): Supplies modules, components, and foundry services to communications companies worldwide. Market cap at $944.78M, most recent closing price at $5.83. Current ratio at 4.59. Net institutional purchases in the current quarter at 10.8M shares, which represents about 6.58% of the company's float of 164.25M shares.

5. Volterra Semiconductor Corporation (VLTR): Engages in the design, development, and marketing of analog and mixed-signal power management semiconductors for the computing, storage, networking, and consumer markets. Market cap at $647.19M, most recent closing price at $25.32. Current ratio at 11.51. Net institutional purchases in the current quarter at 1.6M shares, which represents about 6.45% of the company's float of 24.81M shares.

6. Rubicon Technology, Inc. (RBCN): Develops, manufactures, and sells monocrystalline sapphire and other crystalline products for light-emitting diodes (LED), radio frequency integrated circuits (RFICs), blue laser diodes, optoelectronics, and other optical applications. Market cap at $216.06M, most recent closing price at $9.70. Current ratio at 11.17. Net institutional purchases in the current quarter at 960.1K shares, which represents about 5.65% of the company's float of 16.99M shares.

7. Atmel Corporation (ATML): Designs, develops, manufactures, and markets a range of semiconductor integrated circuit (IC) products. Market cap at $2.55B, most recent closing price at $5.82. Current ratio at 3.01. Net institutional purchases in the current quarter at 21.2M shares, which represents about 5.09% of the company's float of 416.77M shares.

*Written by Kapitall's Alexander Crawford. Institutional data sourced from Fidelity, all other data sourced from Finviz.

Source: 7 Highly Liquid Semiconductors Being Bought Up By Hedge Funds