In light of the U.S. and China’s agreement to meet next month regarding trade talks, the most-broadly-held guru stocks within the semiconductor industry as of the second quarter are Texas Instruments Inc. (TXN, Financial), Intel Corp. (INTC, Financial), Micron Technology Inc. (MU, Financial), Qualcomm Inc. (QCOM, Financial) and Taiwan Semiconductor Manufacturing Co. Ltd. (TSM, Financial).
Dow soars as U.S.-China trade talks materialize
According to CNBC, the Chinese Ministry of Commerce said on Thursday that China’s Liu He spoke with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. The news outlet mentioned that the U.S. and China should work together and create “favorable negotiation conditions."
The announcement sent the Dow to an intraday high of 26,836.30, near the 30-stock index’s close of 26,864.27 on July 31 and 480.43 points higher than Wednesday’s close of 26,355.47. Despite this, the Dow closed just 372.68 points higher at 26,728.15. Apple Inc. (AAPL, Financial), the top holding of Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial), closed at $213.18, up approximately 1.9% from the previous close of $209.19.
Texas Instruments
Twenty-two gurus own shares of Texas Instruments, the company known for graphic calculators like the TI-83, TI-89 and the TI-89 Titanium. The combined weight of the holdings is 22.88%.
GuruFocus ranks the Dallas-based company’s profitability 9 out of 10 on several positive signs, which include expanding profit margins and returns that outperform over 98% of global competitors. Additionally, the company’s business predictability ranks three stars on solid revenue growth over the past 10 years despite decelerating over the trailing 12 months.
Gurus riding Texas Instruments’ profitability include PRIMECAP Management (Trades, Portfolio) and Al Gore (Trades, Portfolio).
Intel
Twenty-one gurus own shares of Intel with a combined weight of 23.29%. Ken Fisher (Trades, Portfolio) has the largest holding with 26,557,167 shares.
GuruFocus ranks the Santa Clara, California-based company’s profitability 9 out of 10 on several positive signs, which include expanding profit margins, a strong Piotroski F-score of 7 and a 3.5-star business predictability rank.
Micron Technology
Twenty gurus own shares of Micron Technology with a combined weight of 48.02%. Mohnish Pabrai (Trades, Portfolio)’s 1,785,745 shares represent 23.43% of his U.S.-based equity portfolio, which is a fraction of his entire assets under management.
GuruFocus ranks the Boise, Idaho-based company’s financial strength and profitability 8 out of 10 on several positive signs, which include robust interest coverage of 79.99 and operating margins that outperform 96.92% of global competitors.
Qualcomm
Twenty gurus own shares of Qualcomm with a combined weight of 21.34%.
GuruFocus ranks the San Diego-based company’s profitability 7 out of 10 on positive investing signs like a strong Piotroski F-score of 7 and operating margins that outperform 85.79% of global competitors despite declining over the past five years.
Taiwan Semiconductor
Eighteen gurus own shares of Taiwan Semiconductor with a combined weight of 11.39%.
GuruFocus ranks Taiwan Semiconductor’s profitability 9 out of 10 on several positive indicators, which include a five-star predictability rank and operating margins that outperform 93.32% of global competitors.
Disclosure: Long Taiwan Semiconductor.
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