Andrei Berezovskyi
Semiconductor stocks were deep in the red on Friday to close the week as investors awaited the start of earnings season.
Intel (NASDAQ:INTC) and AMD (NASDAQ:AMD) were each among the industry’s biggest losers fall almost 5%among relationship that China has asked telecom companies to phase out foreign chips in products by 2027 in favor of domestic options.
China was Intel’s largest market in 2023, accounting for 27% of its total revenue. China was AMD’s third largest market, contributing 15% of sales.
Intel is expected to release first-quarter results on April 25, while AMD will release quarterly results on May 1.
Nvidia (NASDAQ:NVDA) actions fell by 3% and I stayed there correction territory since last month’s GTC event, when it showed off its new line of Blackwell GPUs.
Raymond James raised its price target on the semiconductor giant on Thursday and said investor concerns about a pause in spending are “unwarranted.”
Nvidia will report first-quarter fiscal 2025 results after the close of trading on May 22.
Chip equipment companies also fell on Friday, even as Citi opened a positive 30-day catalyst watch on ASML (NASDAQ:ASML).
Recent trends will likely be evident when ASML and European technology hardware companies release first-quarter results, analyst Andrew Gardiner said. Gardiner reiterated the company’s Buy rating and target price of 1,250 euros on the stock.
ASML is expected to report quarterly results on April 17. A consensus of analysts estimates that the company will earn $2.99 per share on revenue of $5.8 billion.
ASML shares fell by 3.1%while competitors Lam Research (LRCX), Applied Materials (AMAT) and KLA Corp. (KLAC) lost similar amounts.
Other semiconductor stocks in the S&P 500 Index also fell Friday, amid a sharp decline in broader indexes due to ongoing concerns about inflation and geopolitical tensions.
Qualcomm (QCOM) fell by 2%while Micron (MU) was almost 4% discount. Analog chip suppliers Texas Instruments (TXN) and Analog Devices (ADI) decreased by 2.7% and 2.5%respectively while Broadcom (AVGO) fell by 2.8%.
Qorvo (QRVO) and Skyworks Solutions (SWKS) fell by more than 2% each amid a report that Huawei plans to introduce a new premium smartphone to the Chinese market. Qorvo and Skyworks are Apple (AAPL) suppliers.