This article was originally published on ETFTrends.com.
Semiconductor stocks and sector-related ETFs jumped Thursday after a handful of chipmakers revealed better-than-expected fourth quarter results.
The sector strengthened on positive fourth quarter earnings. For example, Xilinix (XLNX) , the maker of logic chips, revealed a record revenue on 5G strength and likely market share gains from Intel Corp, Bloomberg reports. Raymond James analysts pointed out that the semiconductor company benefited from early 5G deployments wins in defense and space, and leadership in the Test, Measurement & Emulation division.
XLNX shares surged 18.4% Thursday.
"Lam delivered solid results in the December quarter, and concluded the 2018 calendar year with record revenue and earnings per share performance," Lam Research CEO Timothy Archer said in the company's earnings release.
LRCX shares advanced 15.7% Thursday.
Teradyne (TER) also reported fourth-quarter 2018 earnings beyond expectations.
"We finished 2018 with strong fourth quarter sales above the high end of our guidance driven by upside demand in our Semiconductor and Wireless test businesses. For the full year, our Semiconductor Test group delivered record memory and analog revenues, which lessened the impact of lower mobility test shipments," CEO Mark Jagiela said.
TER shares increased 12.8%.
Additionally, semiconductor specialist STMicroelectronics (STM) strengthened on fourth-quarter earnings results, beating both revenue and profit expectations.
"2018 has been an important year for ST," CEO Jean-Marc Chery said in a statement. "In line with the objectives we had set, we achieved significant revenue growth across our product groups, as well as a strong expansion of profitability and cash flow from operations."
STM shares popped 10.7%.
SMH includes a 4.4% position in LRCX, 4.4% in XLNX, 1.9% in STM and 1.0% in TER. SOXX holds 3.8% in LRCX, 1.1% in TER and 4.1% in XLNX.
For more information on the tech sector, visit our technology category.
POPULAR ARTICLES AND RESOURCES FROM ETFTRENDS.COM
- SPY ETF Quote
- VOO ETF Quote
- QQQ ETF Quote
- VTI ETF Quote
- JNUG ETF Quote
- Top 34 Gold ETFs
- Top 34 Oil ETFs
- Top 57 Financials ETFs
- Is it Still High Times for High Yield?
- ETF Launchers Grow Antsy as Government Shutdown Freezes SEC
- Remembering Jack Bogle, the Father of Indexing
- Tom Lydon on CNBC’s “ETF Edge”: The Two Faces of Retail
- An ETF that Views Value from a Different Angle