Hedge funds loved Micron before its run to $1 trillion. Here are their other favorites
Micron Technology was among the stocks that made Goldman Sachs’ coveted “Hedge Fund VIP” basket last quarter, as professional traders poured love into the maker or data and storage chips. The Wall Street investment bank used regulatory filings to analyze the holdings of 1,059 fundamentally-driven hedge funds, responsible for running $4.6 trillion of gross equity positions at the start of the second quarter. Goldman then compiled a basket of the most popular long positions, comprised of the 50 stocks that most frequently appear among hedge funds’ 10 largest holdings. This VIP basket has risen 10% year to date, outperforming the S & P 500 ‘s 9% gain in the same time period, though last Friday, May 22. The basket has outperformed the broad market index in 59% of all quarters going back to 2001. Almost 50 hedge funds had Micron as one of their top 10 holdings at the end of the first quarter. Shares soared 19% on Tuesday alone, pushing the company’s market value past $1 trillion for the first time ever, thanks to insatiable AI demand for its memory chips. Tuesday’s rally was helped by the voracious appetite for memory chips in the artificial intelligence boom, and UBS tripling its price target on Micron, to $1,625. “We believe the market will start to put a more ‘normal’ multiple on the stock and MU will continue to re-rate higher as more details emerge about the structural changes AI has driven to the entire memory [chip] complex,” UBS wrote. Dozen additions New additions to Goldman Sachs’ basket were Revolution Medicines , Lam Research , Intel , MasTec , Coherent , UnitedHealth Group , S & P Global , Bloom Energy , Marvell Technology , Vistra , Centuri and Hut 8 . The bank said that hedge fund position turnover last quarter was below the historical average. The top of the VIP list was occupied by high-flying tech names such as Amazon , Nvidia , Alphabet , Microsoft , Meta Platforms and Apple . Chipmakers Taiwan Semiconductor and Broadcom were also high on the list.
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