100s of titles, one news app for just $10 a month.
Latest Technology news:
AMD takes aim at Intel with monstrous Ryzen 7000 CPU reveal
AMD’s CEO, Lisa Su, didn’t even mention Intel by name after dragging the company in a Blender demo at Computex…
Read news from The Economist, FT, Bloomberg and more, with one subscription
Learn More
Tesla Model Y Performance Owner Lists 10 Things He Hates About It
The Model Y Performance is a great electric vehicle, but it could become even better with several improvements, most of…
Porsche Taycan GTS Hockenheimring Edition Celebrates Track’s 90th Anniversary
This Taycan special edition features an appearance pack that adds decorative stitching, anniversary badges, bronze trim and a unique exterior…
Pfizer, BioNTech Say Three-Dose Covid Vaccine Is 80% Effective In Children Under 5
Vaccine stocks edged higher Monday after Pfizer said its three-dose Covid vaccine was more than 80% effective in toddlers and…
'Fortnite’ Obi-Wan Kenobi release date, price, and bundle details
Here's what you need to know about the upcoming 'Fortnite' Obi-Wan skin, including its release date and how to unlock.
From analysis to good news, read the world’s best news in one place
Tesla Cybertruck Shows Up In Michigan At Formula SAE Booth
It seems many people at a recent event in Michigan had no idea that Tesla would have a booth and…
Zuckerberg sued by DC attorney general over Cambridge Analytica data scandal
Karl Racine accuses Facebook co-founder of direct knowledge of policies that allowed firm to gather data of millions of Americans

Chipmaker Earnings Reports Mostly Positive But Investors Apathetic


The first week of May saw beat-and-raise earnings reports from numerous chipmakers. But investors worried about a peaking chip cycle remain cautious on semiconductor stocks.

So far this year, the Philadelphia semiconductor index, known as SOX, is down 24.4%, vs. a 13.5% decline for the S&P 500. The SOX contains the 30 largest semiconductor stocks traded in the U.S.

Semiconductor stocks delivering better-than-expected March-quarter results and guidance in the past week included Advanced Micro Devices, Cirrus Logic, Lattice Semiconductor, Monolithic Power Systems, NXP Semiconductors, Onsemi, Rambus, SiTime and Synaptics.

"Despite the solid results and optimistic tone, overall investor sentiment seems to lean toward apathy (with concerns around a cyclical peak still on their mind)," Deutsche Bank analyst Ross Seymore said in a note to clients on Friday.

Management commentary has been mostly positive on demand and supply at semiconductor companies, Seymore said.

Selective Stance On Semiconductor Stocks

Meanwhile, investor worries range from macroeconomic issues such as inflation and geopolitical uncertainty to industry-specific concerns. Those concerns include weakening PC and smartphone sales, Covid-related shutdowns in China, and consumer pessimism.

"The general angst of the market leads us to maintain our selective stance on the semi sector," Seymore said.

Among semiconductor stocks, he recommends Broadcom for its steady growth. He also likes Marvell Technology and Qualcomm for 5G handsets and infrastructure.

Chipmakers that disappointed with their March-quarter results and/or guidance in the past week included Alpha & Omega Semiconductor, Qorvo, Skyworks Solutions and Wolfspeed.

Institutions, Hedge Funds 'Extremely Bearish'

"Many institutional and hedge funds are extremely bearish on the semiconductor sector," Daniel Morgan, senior portfolio manager for Synovus Trust, said in a note to clients Thursday. The negative sentiment is at its highest point since the Trump administration's trade war with China, he said.

Skeptics point to slowing PC sales and softening demand for smartphones in China, he says.

Morgan is maintaining a positive view on semiconductor stocks exposed to cloud data center spending, 5G wireless infrastructure and gaming.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

What is inkl?
The world’s most important news, from 100+ trusted global sources, in one place.
Morning Edition
Your daily
news overview

Morning Edition ensures you start your day well informed.

No paywalls, no clickbait, no ads
Enjoy beautiful reading

Content is only half the story. The world's best news experience is free from distraction: ad-free, clickbait-free, and beautifully designed.

Expert Curation
The news you need to know

Stories are ranked by proprietary algorithms based on importance and curated by real news journalists to ensure that you receive the most important stories as they break.