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Chips stocks are down by more than 8% from their March highs as measured by the iShares PHLX Semiconductor ETF ( SOXX). Some stocks within the ETF are down even more, and the losses may be about to get a whole lot worse based on technical analysis. Shares of Lam Research Corp. ( LRCX), Teradyne Inc. ( TER), Applied Materials Inc. ( AMAT), Skyworks Solutions Inc. ( SWKS) and On Semiconductor Corp. ( ON) are already down by more than 20% from their highs earlier this year.
Stock futures: Nvidia and Applied Materials topped views, but gave weak guidance. That's a bad sign for the chip sector and the market rally. Nordstrom jumped on strong profit and guidance.
Yes, the S&P 500 (SPY) is still up 6% for the year, but stocks are all over the place. Since early May, the SOX (Semiconductor Index) is barely up, while Consumer Staples are up 10%. Are tariffs good? Not for US Steel (X) or Alcoa (AA) and certainly not for China. Chinese equities (FXI) are down 20-25% across the board. Is Turkey the problem? Eh, maybe eventually. But usually macro scares move to the background quickly. Turkey is not in our top 30 trading partners. Is it rates? Maybe. Maybe inversion is more the issues. Real estate is bad. Look at the comments from Redfin (RDFN). What about commodities? Very bad also. Oil (USO) down, gold (GLD) down, copper down (CPX). At Market Realist, we have been talking about the upcoming earnings cliff since April. This week we really saw that start to play out – specifically with semiconductor names. Our Market Realist Pro subscribers know that we put Lam Research (LRCX) on our “avoid” list in July. Today, after Applied Materials’ (AMAT) earnings, that stock is now down $25 since we called it out. Micron has gotten crushed to $46 from when we said avoid it in May.
NVIDIA (NVDA) and Applied Materials (AMAT) published their latest earnings results on August 16. Weaker guidances from these two companies, which have been beating analysts’ estimates for over two years, have added to investors’ fears that the semiconductor growth cycle may be slowing. AMAT is the world’s largest supplier of semiconductor manufacturing equipment.
Applied Materials (AMAT) is expected to witness a slump in demand in the short term due to weakness in the memory market and the US-China trade war. Lower revenues would also impact the company’s operating cash flow, although the company is improving its profit margins. High capital spending reduced AMAT’s FCF (free cash flow) to $490.0 million in the fiscal second quarter.
NEW YORK, NY / ACCESSWIRE / August 17, 2018 / U.S. markets bounced back on Thursday after Walmart and Cisco reported upbeat quarterly earnings. The Dow Jones Industrial Average jumped 1.58 percent to close ...
Applied Materials (AMAT) and Lam Research (LRCX) stocks have declined due to the onset of the US-China trade war. Their moving averages showed that the stock prices have recovered slightly. However, investors’ sentiment is still skewed towards the sell side.
Jim Cramer zips through his take on callers' favorite stocks, including why it's a good time to buy the industry everyone hates.
Technical analysis is based on the idea that history tends to repeat itself. One measure of technical analysis is moving averages. Moving averages take the average of a stock’s prices over a certain period to understand which direction the movement is skewed.
Starboard's interest in Symantec comes as the maker of Norton anti-virus software said earlier this month that it would cut 8 percent of its global workforce, or about 1,000 employees, amid amid weak revenue growth in its enterprise security business.
The US-China trade war has impacted semiconductor stocks. On July 10, President Trump announced the second round of tariffs on $200 billion worth of Chinese (FXI) imports effective August 30. The goods include semiconductor manufacturing and packaging equipment. SME (semiconductor manufacturing equipment) supplier stocks like Applied Materials (AMAT), Lam Research (LRCX), and KLA-Tencor (KLAC) fell more than 3% in one day.
Applied Materials (AMAT) is currently witnessing the technology industry’s transition from the mobile era to the AI era. AI is helping AMAT expand its consumer base for its Semiconductor Systems division, which provides more than 60.0% of its revenues.
The technology industry is currently undergoing a major transition to the data economy, and semiconductors lie at the heart of technology. This encouraged Applied Materials (AMAT) to increase its R&D (research and development) efforts in new materials, new device architectures, and new node shrink techniques. Advanced technologies are material- and capital-intensive, enabling AMAT to generate higher returns from its R&D investments. It uses technologies like e-beam to measure, understand, and inspect new materials and structures.
A company’s efficiency ratios show the returns the management delivers from its investments. Investors prefer stocks that generate higher returns from lower investment. A company’s ROI (return on investment) measures the income it earns on a certain level of investment. ROI is subject to a company’s capital structure, as it subtracts gains from the investment with the cost of the investment. During this period, the company enjoyed the semiconductor industry’s transition to the next-generation technologies.
Applied Materials (AMAT) has a diversified product portfolio, which helps it mitigate the impact of downturns in any one industry or customer on its overall earnings. AMAT’s profitability is similar to Lam Research (LRCX), which also has numerous products that overlap in deposition and etching. However, AMAT has a broader portfolio.
Applied Materials (AMAT), the world’s largest semiconductor equipment vendor, has been expanding its exposure across a variety of end markets. As a result, its revenue growth was higher than that of KLA-Tencor (KLAC) but lower than that of Lam Research (LRCX) during the memory upcycle. Lam Research has high exposure to the memory market.
Recent commentary from Lam Research Corp. and KLA-Tencor Corp. has quelled some concerns about the near-term outlook for the semiconductor-equipment industry, but the team at Morgan Stanley isn’t quite convinced.
Semiconductor-equipment stocks are in for a rangebound phase, during which they are likely to neither outperform nor underperform, according to Morgan Stanley. The Analyst Analyst Joseph Moore changed ...
Leading chip equipment makers have done a pretty good job this earnings season of dispelling worst-case fears about their industry. , the world's biggest chip equipment maker, is set to deliver its July quarter report on August 16th.
FREMONT, Calif., Aug. 02, 2018-- Lam Research Corporation today announced its upcoming investor conference schedule:. August 14 th, 2018– KeyBanc Capital Markets 20 th Annual Technology Leadership Forum ...
In a rough few days for FANG stocks before Tuesday’s boost, investors suddenly seem to have realized that stock valuations matters, even for tech superstars. The short answer is "not quite." The average forward P/E ratio of companies in the Nasdaq 100 index, the 100 largest non-financial companies listed on the tech-heavy Nasdaq Stock Market, remains a lofty 21.7, compared to 17.5 for the S&P 500, according to FactSet. Of course, not all tech companies are so pricey–but that discount is often justified.