This article was originally published on ETFTrends.com.
Semiconductors are riding high on a positive spate of earnings reports, but Intel's miss on revenue and a weak guidance following the close of Thursday's session could prop up the Direxion Daily Semiconductor Bear 3X ETF (SOXS) .
Conversely, this could spell bad news for the Direxion Daily Semiconductor Bull 3X ETF (SOXL), which soared 17 percent. However, that could change in Friday's session as a result of the latest earnings from Intel.
Intel shares fell as much as 8 percent after the chipmaker reported lower-than-expected revenue for the fiscal fourth quarter. Earnings came in at $1.28 per share as opposed to the. $1.22 per share expected by analysts, according to Refinitiv.
Furthermore, revenue came in at $18.66 billion, falling below the $19.01 billion expected by analysts. Intel is also searching for new leadership after former CEO Brian Krzanich was ousted seven months ago.
"The board continues to evaluate candidates for what I believe is the biggest and best open job on the planet," Swan told analysts on a conference call after Thursday's earnings release. "They are proceeding with a sense of urgency while also ensuring that they make the right choice for this great company."
Semiconductors Facing Headwinds
Following the earnings release, SOXS gained over 4 percent in trading after hours. However, if the industry continues facing headwinds, there could be plenty more opportunities for traders to take the bearish stance.
"With the semiconductor industry facing a number of headwinds, a including a slowing Chinese economy, soft smartphone sales, softening auto demand, slowing hyperscale demand, a lingering government shutdown, and ongoing trade war certainty, Intel has remained in a strong position relative to peers, with its own supply shortages likely insulating it from headwinds," said Weston Twigg, an analyst at KeyBanc Capital Markets. "However, we expect headwinds to mount in 1Q as data center demand likely continues to slow and Intel's new Apple modem business likely declines amid soft demand."
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