Qualcomm’s strong fourth-quarter results, driven by robust automotive and IoT segments, have sparked a mix of reactions from analysts. While some see potential in the company’s diversification and growth in these areas, others express concerns about Apple’s in-house modem development and slowing smartphone markets.
US markets closed in the red on Wednesday, weighed down by declining chip stocks, but strong earnings reports from tech giants like Microsoft and Meta provided some positive sentiment. Asia markets saw a mixed performance on Thursday, with Japan and Australia experiencing losses while China and Hong Kong witnessed modest gains. The European STOXX 50 index opened lower, with major European indices also trading in negative territory. Oil prices rose on the back of optimistic US fuel demand, while gold and silver declined.
Shares of chipmakers including Nvidia, Broadcom, TSMC, Marvell, ON Semiconductor, and Micron are down on Wednesday following AMD’s underwhelming quarterly earnings. Despite the ongoing AI frenzy, the sector faces headwinds from geopolitical tensions and concerns about the long-term viability of capital-intensive AI technologies. Meanwhile, major tech companies are forging partnerships to reduce their reliance on Nvidia, highlighting the shifting dynamics in the semiconductor landscape.
Chip stocks are trading higher on Friday, mirroring the rally in Western Digital shares after the company reported strong first-quarter earnings. KeyBanc analyst John Vinh provides insights into the semiconductor landscape, highlighting both opportunities and challenges for major players like Nvidia, AMD, and Intel.
Nvidia shares are recovering after a sharp decline on Tuesday, driven by a rebound in the broader chip sector and optimism around AI-related demand. While weak guidance from ASML Holding on non-AI chip demand caused a selloff, ASML’s CEO remains optimistic about the long-term growth of the AI segment, supporting Nvidia’s upward trajectory.
US markets closed lower on Tuesday, led by a decline in chip stocks and energy, while earnings results were mixed. Global markets saw a mixed performance, with Japan and Australia declining, while China and the UK gained. Oil prices stabilized after a sharp drop, supported by OPEC+ cuts and Middle East tensions. European markets were mixed, with Germany, France, and the STOXX 50 index falling, while the UK FTSE 100 rose.
AMD stock, along with other chip companies, is experiencing a decline in trading, mirroring the drop in ASML’s share price following the release of its soft guidance. ASML, a key supplier of chip manufacturing equipment, predicts lower-than-expected sales and expenses in the upcoming quarters, raising concerns about the broader chip industry’s performance. This news comes amidst reports of potential U.S. restrictions on chip exports, adding to the uncertainty in the sector.
Semiconductor stocks are experiencing a dip on Wednesday, ahead of Nvidia’s fiscal second-quarter earnings release. Despite the sell-off, the AI tailwind continues to drive growth in the sector, with several companies expecting significant revenue increases due to strong demand for AI chips.
Texas Instruments’ strong second-quarter revenue forecast has sparked optimism in the chip industry, leading to a rally in chip stocks. The company, considered a bellwether for semiconductor demand, reported a midpoint revenue estimate of $3.8 billion, exceeding analysts’ projections of $3.77 billion. This positive outlook indicates a potential recovery in chip demand following a prolonged slump.
