Good news for chip stocks–well, for some chip stocks

Good news for chip stocks–well, for some chip stocks

In November global chip sales rose for the first time in more than a year. Global semiconductor revenue added up to $48 billion in November, a 5.3% increase from a year earlier, according to the Semiconductor Industry Association. Sales rose a more moderate 2.9% from October. But the good news didn’t extend to all chip segments.

Good news for chip stocks–well, for some chip stocks

Is the good news priced in for Micron?

Right now memory chip maker Micro Technology (MU) is a microcosm of the stock market as a whole. There’s good news–pretty clearly–on the horizon. But the worry is that it’s already mostly priced into the stock. This week Micron, the largest U.S. maker of memory chips, gave a forecast for the fiscal second quarter that sure made it sound like the company, and the memory chip sector in general, was about to turn the corner after getting hammered on slumping demand for chips for personal computers and smartphones.

10 Stocks for the AI Gold Rush–and WHY these picks

10 Stocks for the AI Gold Rush–and WHY these picks

Artificial intelligence really is a paradigm-breaking, transformative technology. Right now, investors are so enthusiastic about the sector, especially the obvious leader Nvidia (NVDA), that we’re looking at a potential bubble that will collapse with much gnashing of teeth and I-told-you-so “wisdom” casting doubt on the reality of the entire endeavor. I think a bubble is indeed possible. Nvidia did trade at a trailing twelve-month price-to-earnings ratio of 196 on May 31, after all. But I think you do want to own the sector now–because the breaking of the bubble, if it does break is, in my opinion, two quarters or more away. And you want to own the sector for the long run–say, 10 years or more–because it is such a game changer for so much of the economy. But what to own? I’ve put together a list of the 10 stocks that I think are the best way to participate in the AI gold rush.

Good news for chip stocks–well, for some chip stocks

Micron’s revenue warning is shot across the bow of chip equipment makers

Yesterday, September 29, after the close of trading DRAM chipmaker Micron Technology (MU) reported fiscal fourth-quarter earnings of $1.35 a share and adjusted earnings of $1.45 a share. That was down from $2.42 a share in adjusted earnings in the fiscal fourth quarter of 2021. Wall Street was looking for earnings of $1.37 a share. Revenue fell to $6.64 billion from $8.27 billion a year ago. Analysts had been looking for revenue of $6.73 billion. The drop in earnings and revenue was widely expected. Which is why the stock closed up 0.18% today after the earnings. You’d have to say that the big hurt from Micron’s news–and especially from its report that it would cut total capital spending by 30% year over year and spending on wafer fab equipment by 50% year over year–fell on chip equipment makers.

Good news for chip stocks–well, for some chip stocks

Another chip maker–this time is Micron–warns and chip stock take a hit

First, it was Nvidia (NVDA) cutting its guidance for revenue and earnings due on August 24. Today, August 9, it was Micron Technology (MU) warning that its revenue for the fourth-quarter revenue may come in at or below the bottom end of a forecast range provided in the company’s earnings call on June 30. Micron is scheduled to report on September 27. All this comes as the market is on edge anyway ahead of tomorrow’s report on CPI inflation. As of the close on Tuesday, August 9, shares of Micro Technology were down 3.74%. Shares of Nvidia were down another 3.97% after closing down 6.30% yesterday.

Good news for chip stocks–well, for some chip stocks

It’s already correction time in the chip sector

The Philadelphia Semiconductor Index is now down 8.7% from its September 16 peak. The slump comes as investors and traders sell on fears of supply-chain problems in the sector and especially in the memory chip market. The drop has left the index testing its 200-day moving average, a support level that hasn’t been challenged since May of 2020.

They shoot momentum stocks don’t they?

They shoot momentum stocks don’t they?

The last two days of a plunging stock market on fears that the outbreak of coronavirus will last longer and spread farther than previously imagined have taken a huge chunk out of some momentum stocks. Just today shares of Nvidia (NVDA) fell another 4.11%, Twilio...