Cisco Systems, Inc. (NASDAQ:CSCO) and Intel Corporation (NASDAQ:INTC) are the two most popular tech stocks for HFT. CNBC’s finance editor Jeff Cox was discussing about the stocks popular for HFT and he stated:
“High frequency traders actually look for stocks that are heavily traded, they are often household names, they are names that are held in many mutual funds and index funds”
Jeff also said that people usually mix up Momentum traders and High Frequency traders. Momentum traders’ looks for weak, but quickly moving stocks or the high flier stocks and high frequency traders look for stocks that are cheap but heavily traded. These stocks are not very volatile either and are household names.
While Cisco Systems, Inc. (NASDAQ:CSCO) is a popular name in the corporate world, Intel Corporation (NASDAQ:INTC) is in almost every home that has a computer or a mobile device. Moreover, both companies lead in the market in terms of sales of their key products.
The reason behind Cisco Systems, Inc. (NASDAQ:CSCO) becoming the most favorite and popular stock for HFT is the marketing strategy the company uses and the quality of its products. The San Jose based Networking Giant is the world’s best networking devices manufacturer currently and it is also popular in households as it provides routers for home use too.
On the other hand Intel Corporation (NASDAQ:INTC) can be seen in almost every home around the globe as most of the world’s computers use Intel chipset and the company has also partnered with popular PC and tablet brands to launch co-branded laptops and tablets.
The main factor about these tech giants that excites HFT is the non-volatility of these stocks. These stocks have mostly stayed stable over the last one year. The stock of Intel Corporation (NASDAQ:INTC) has mostly traded in the $ 24 – $ 28 window which seems more reliable from an investor point of view and this seems to go up recently. Cisco Systems, Inc. (NASDAQ:CSCO) has been on similar grounds as well where in its stock traded in $ 22 – $ 26 window mostly barring few weeks where it went below $ 22.
Among the largest shareholders of Intel Corporation (NASDAQ:INTC) is Natixis Global Asset Management‘s Harris Associates, which owns 66.86 million shares as of the end of March. Another one is First Eagle Investment Management, led by Jean-Marie Eveillard, which held 38.20 million at the end of the first quarter.