|Day's Range||4.5000 - 4.7200|
The stock market, it seems, has been going straight up. This chart shows that stocks are moving up in lockstep with the Federal Reserve printing money. In this situation, what is a conservative investor to do?
(Bloomberg) -- Intel Corp.’s better-than-expected forecasts delivered the kind of good news semiconductor investors were looking for to justify record highs.The biggest U.S. chipmaker projected revenue in the current quarter of about $19 billion, more than $1 billion above the highest analyst estimate, according to data compiled by Bloomberg. Perhaps even more important for the broader industry, Intel’s data center revenue in the fourth quarter also expanded by 19%, compared with the same period a year ago. That beat the average of analyst estimates compiled by Bloomberg at 5.3%.Nvidia Corp., Micron Technology Inc. and Advanced Micro Devices all rose more than 1.5% in after-hours trading while Intel gained as much as 7.8%. The Philadelphia semiconductor index has gained more than 5% since the start of the year and closed at a fresh record on Thursday.Intel’s results came a day after Texas Instruments Inc. calmed nerves with a forecast that met estimates but failed to spark a rally.To contact the reporter on this story: Jeran Wittenstein in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Jennifer Bissell-LinskFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
DRAM, or dynamic random-access memory, is used in desktop computers, mobile phones, and servers, while NAND is flash memory used in smartphones and solid-state hard drives. Western Digital (WDC) is another maker of NAND flash memory and manufactures mechanical hard drives. On Thursday, Morgan Stanley analyst Joseph Moore raised his ratings for both Micron and Western Digital to Overweight from Equal-weight.
Analyst Joseph Moore upgraded Micron from Equal-Weight to Overweight and increased the price target from $56 to $73. The analyst sees DRAM as a gradual bottoming process, yet thinks Micron will rerate. Although there is no shortage for DRAM, buyers anticipate shortages, which has led to gradual price improvement.
U.S. stock indexes fell on Thursday, as mounting worries over a coronavirus outbreak in China, disappointing corporate earnings and weakness in financial stocks prompted investors to hit the brakes after a strong rally this year. China put on lockdown on Thursday two cities at the epicentre of the coronavirus outbreak that has killed 17 people and infected nearly 600 amid fears the transmission rate will accelerate as hundreds of millions of Chinese travel for the Lunar New Year holidays.
(Bloomberg) -- Micron Technology Inc. and Western Digital were both upgraded to overweight from equal-weight at Morgan Stanley, the latest firm to express optimism about pricing for memory-related semiconductor products.“We did not expect memory fundamentals to bottom this quickly, but as proof points grow, the ramifications are significant,” analyst Joseph Moore wrote to clients. This trend could mean more upside potential for the stocks, “even given the moves we have already seen.”The firm raised its price target on Micron to $73 from $56, and its Western Digital target to $88 from $64, not far from the Street-high view of $90.Shares of Micron jumped 2.4% to their highest level since June 2018 while Western Digital was up as much as 4.9% to touch its highest since July 2018. Both stocks have been on a tear of late, up about 90% since the end of 2018. The Philadelphia Semiconductor Index is up 67% over the same period.“We missed a large move,” Moore admitted in a note to clients.The upgrade comes after Morgan Stanley last month raised its view on the overall semiconductor sector to in-line, writing that that fundamentals were bottoming and that consensus estimates had moved lower.On Thursday, Moore noted that memory prices had “started to stabilize six months ago,” but that in the last several weeks “we have seen a notable difference in mentality from memory buyers that belatedly convinces us that these changes can persist.”Cowen, in a note dated Jan. 22, wrote that smartphones were acting as a tailwind for memory demand. Analyst Karl Ackerman called the product category “the sponge that is quickly soaking up excess memory supply,” causing supply “tightness” and lifting average selling prices. He wrote that Micron was one of the “largest beneficiaries,” from the trend, although Western Digital “is also well positioned.”Earlier this month, Cowen also raised its view on Micron and Western Digital, also citing improved memory trends. In late December, Susquehanna Financial Group upgraded both stocks as well, while RBC Capital Markets wrote that it was “officially calling the bottom on memory pricing.”Western Digital is scheduled to report second-quarter results on Jan. 30. In December, Micron reported first-quarter results, which beat expectations and gave a sales forecast that was seen as strong.(Updates trading to market open in fourth paragraph)To contact the reporter on this story: Ryan Vlastelica in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Steven Fromm, Scott SchnipperFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Shares of Micron Technology Inc. and Western Digital Corp. are up about 2% each in premarket trading Thursday after Morgan Stanley analyst Joseph Moore upgraded both stocks to overweight from equal weight. "We did not expect memory fundamentals to bottom this quickly, but as proof points grow, the ramifications are significant," Moore wrote. "The higher trough and the elevated valuation environment for semis suggests memory rerating potential even give the moves we have already seen." Micron's stock has added 32% over the past three months, and Western Digital's has gained 19% as the S&P 500 has risen 11%. Moore's channel checks point to "real conviction" from customers that the memory market will get tighter throughout this calendar year, which is causing them to put more inventory in place. Moore upped his price target on Micron's stock to $73 from $56, and he increased his Western Digital target to $88 from $64.
Wall Street was set to open lower on Thursday on rising worries over the coronavirus outbreak in China that prompted a lockdown of two cities in the country, while a mixed bag of results added to the dour sentiment. The benchmark S&P 500 closed slightly higher on Wednesday but well below its record high after attempting to bounce back from sharp losses earlier in the week on concerns about the virus outbreak hitting the global economy. China put on lockdown on Thursday two cities at the epicentre of the coronavirus outbreak that has killed 17 people and infected nearly 600 amid fears the transmission rate will accelerate as hundreds of millions of Chinese travel for the Lunar New Year holidays.
The S&P 500 and the Nasdaq were set for record highs on Wednesday, as investors took heart from China's efforts to contain a virus outbreak and a strong forecast from IBM. The main indexes retreated from record highs on Tuesday after officials confirmed the first U.S. case of the coronavirus that has killed nine and infected 440 in China. "While the death toll has risen to nine, it feels like affirmation we're getting out of China is stemming fears that this is turning into an epidemic," said Art Hogan, chief market strategist at National Securities in New York.
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