114.10 +0.15 (0.13%)
After hours: 7:54PM EDT
|Bid||114.05 x 800|
|Ask||114.10 x 900|
|Day's Range||113.48 - 114.62|
|52 Week Range||80.71 - 120.71|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.55|
|Expense Ratio (net)||0.35%|
Chip stocks are the big winners on the U.S.-China trade truce. In particular, AMD, Skyworks, Nvidia, Micron, Broadcom, are all in the green. Yahoo Finance's Jared Blikre breaks it down with Seana Smith.
US-China trade negotiations have started again. Of particular interest is the US's easing of the Huawei ban, which has boosted semiconductor stocks.
The major U.S. benchmarks are off to a bullish third-quarter start, writes Michael Ashbaugh, with each index staging an orderly pullback from its recent record close.
Shares of semiconductor makers suffered broad weakness Friday, in the wake of a warning from South Korea-based electronics behemoth Samsung Electronics Co. that second quarter profit could less than half what it was last year.
Nvidia (NASDAQ:NVDA) stock has performed very well since the beginning of June, and as the chart below shows, shares of NVDA are up nearly 12% since then.Compare the gain in Nvidia's share price to the VanEck Vectors Semiconductor ETF (NYSEARCA:SMH), which is up just 6.8%. But considering this quick run-up in Nvidia's stock, it would be wise to wait for a pullback before jumping in for the long haul. Bad News Is Priced In Click to Enlarge Source: Yahoo Finance Much of the bad news for Nvidia has already been priced in by the market. During their most recent earnings report on May 16, Nvidia's management did not give an outlook for the remainder of the year.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, they warned about continued softness in Nvidia's datacenter segment and issues with a CPU shortage in the gaming segment.When those issues are combined with the well-known issue of continued revenue declines from cryptocurrency miners, it appears any bad news is already known by the market."The data center spending pause around the world will likely persist in the second quarter and visibility remains low," said Colette Kress, EVP & CFO on NVDA's Q1 2019 earnings call. "In gaming, the CPU shortage while improving will affect the initial round of our laptop business." Pending Acquisition of Mellanox TechnologiesOne of the potential catalysts for Nvidia to drive growth is the pending acquisition of Mellanox Technologies (NASDAQ:MLNX), which is expected to close by the end of the year. The deal is important for Nvidia, because it provides growth at a time when growth has been lagging.During the Q1 earnings press release, the company noted that the deal would be immediately accretive upon closing. The one wildcard for this deal being finalized is the fact that it needs approval from China.Therefore, if there are continued trade tensions with China, the completion of the deal could be delayed or rejected. That is something investors should consider in their decision making process.From Nvidia's earnings press release:"Once complete, the combination is expected to be immediately accretive to Nvidia's non-GAAP gross margin, non-GAAP earnings per share, and free cash flow. The transaction is expected to close by the end of the calendar year." Appealing Long-Term Technical OutlookMany investors will look at technical analysis as part of their decision process when determining to buy a stock, however many investors usually focus on short-term timeframes. When looking at short-term timeframes, shares of Nvidia are overbought, which is why some caution should be exercised.For stocks that I am considering holding for an extended period of time, I like to look at the long-term technical outlook, which means looking at a weekly or monthly chart versus the standard daily charts that many investors look at. Click to Enlarge Source: TradingView The adjacent chart paints a bullish picture for the technical outlook for Nvidia. The RSI on the weekly chart is still below 50 and both lines of the MACD are still below zero. Given these data points, I expect shares of Nvidia will retest the $200 level sometime this year. Bottom Line on NVDAIn closing, I believe Nvidia is a quality company at the intersection of a number of important trends, ranging from the data center to autonomous driving. If the pending acquisition of Mellanox Technologies is approved, it will provide an additional avenue of growth in the future.Since the bad news is known by the market, and considering Nvidia's future growth prospects, it makes sense to be on the lookout for a quality opportunity to enter NVDA for the long-term.The time to enter is not at this moment in time, given the short-term overbought conditions that are present. Once the short-term overbought conditions subside, there should be an opportunity in the near future to be able to enter for the long-term.As of this writing, Brad Kenagy does not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Should Be Every Young Investor's First Choice * 5 IPO Stocks to Buy -- According to Wall Street Analysts * The Top 10 Best Sectors in the Market for 2019 The post 3 Reasons to Buy Nvidia Stock (Once It Pulls Back) appeared first on InvestorPlace.
On July 1, we saw several semiconductor stocks rally. The VanEck Vectors Semiconductor ETF rose 2.8%, while the iShares PHLX Semiconductor ETF rose 4.4% on the day.
There's a trade pause in the news and Advanced Micro Devices (NASDAQ:AMD) bulls continue to win the war on and off the price chart. All of this is setting up another nice long opportunity in AMD stock. Here's why:Source: Shutterstock This week has started off on a solid and well-supported footing for Wall Street following upbeat trade war news between the U.S. and China from the G-20 Summit. And semiconductor stocks like AMD stock are faring even better.The Vaneck Vectors Semiconductor ETF (NYSEARCA:SMH) is adding 3.85% and demonstrating relative strength as the industry's revenues rely heavily on business with China. And for its part, shares of AMD have jumped significantly.InvestorPlace - Stock Market News, Stock Advice & Trading TipsImportantly, the U.S. government's ban against China's Huawei has been eased as part of the latest agreement. The company remains on a trade blacklist, but U.S. technology firms can sell products such as semiconductors, which don't pose a national security risk, to Huawei.Ironically, this past Friday, AMD stock came under modest pressure following a report it had improperly transferred sensitive, microprocessor technology to some of its Chinese partners in 2016. Advanced Micro Devices quickly pushed back with evidence it followed all protocols and received permission from the U.S. Commerce Department regarding the shared technology within the joint venture. * 7 Restaurant Stocks to Put on Your Plate Hmm … "fake news" anyone?I'll let readers reach their own conclusion regarding Friday's AMD stock story.The fact is Advanced Micro Devices continues to do great and impress with its business gains. Most recently, last Thursday AMD stock received a fresh buy recommendation from Wedbush. The investment firm sees AMD's "early adoption of a distributed chiplet" architecture combined with a shift to leading-edge geometries positions capable of taking meaningful market share in both the PC and server markets from rival Intel Corporation (NASDAQ:INTC).The other fact is the current price action looks like the latest opportunity for AMD stock bulls to go long and profit from a friendly trend. AMD Stock Weekly Chart Click to EnlargeMonday's bid in AMD stock has confirmed a pullback formed over the past couple weeks after shares narrowly hit fresh relative highs in early June. Bears are likely to see the recent high as a pattern double top and resistance until overcome. I prefer to remain optimistic of AMD's uptrend.At the end of the day, or in this case, the end of the week, Advanced Micro shares found support around recent lateral price congestion and with Monday's price action, have now confirmed a new pivot low within AMD stock's bullish trend.One flaw with buying AMD stock today is the weekly stochastics. Currently, the indicator is in neutral territory and hasn't yet signaled a bullish crossover. With shares less than 2% above last week's candlestick pivot high and otherwise in a buyable position, my recommendation is to put AMD on your watch list for purchase once stochastics fully affirms today's price action.Disclosure: Investment accounts under Christopher Tyler's management currently own positions in Advanced Micro Devices (AMD) and its derivatives, but no other securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 F-Rated Stocks to Sell for Summer * 7 Stocks to Buy for the Same Price as Beyond Meat * 7 Penny Marijuana Stocks That Are NOT Cheap Stocks The post How, When and Why to Buy Advanced Micro Devices Stock Again appeared first on InvestorPlace.
Gap-up opens, like we have Monday morning, present traders with difficult choices. The prudent move is to take some profits into this sort of strength especially in extended stocks. On the other hand, fighting strong momentum has not been a productive approach in a market dominated by computer algorithms.
This week will be a shortened week due to the Independence Day holiday; however, investors will be focused on the critical economic data to be released such as the June jobs report.
The market had some optimistic headlines to work with Wednesday morning about a possible U.S.-China trade deal, but it turned into a dull session. In a dull market traders will seek out some action in certain sectors.
A number of optimistic headlines about a possible trade deal with China gave the indices an early boost Wednesday, but the energy is fading fast. One of the problems was that CNBC posted a misleading headline about comments by Treasury Secretary Mnuchin. CNBC quoted him as saying that a trade deal is 90% done.
Semiconductor maker stocks were broadly higher in premarket trading Wednesday, fueled by Micron Technology Inc.'s better-than-expected earnings and upbeat outlook, and after memory chip maker said it resumed some shipments to China's Huawei Technologies Co. The VanEck Vectors Semiconductor ETF rallied 2.4%, as all 22 of the 25 components that have traded ahead of the open gained ground. Micron's stock shot up 8.9% to pace the gainers. Among other more-active stocks, Advanced Micro Devices Inc. rallied 3.4%, Nvidia Corp. rose 2.3%, Intel Corp. advanced 1.6%, STMicroelectronics N.V. hiked up 4.8% and Qualcomm Inc. tacked on 1.3%. Micron's stock had lost 19% over the past three months through Tuesday, while the chip ETF has lost 0.8% and the S&P 500 has gained 3.5%.
Trump adds more Chinese tech entities to the Entity List. This puts spotlight on major U.S. chip suppliers to these entities and the impact on the ETFs holding them.
On June 18, semiconductor stocks filled the list of the top gainers in the S&P 500 Index after US President Donald Trump confirmed in a phone conversation with Chinese President Xi Jinping that the two would meet at the G20 Summit in Japan on June 28–29.
Semiconductor stocks could fall further toward the end of June if the United States decides to impose tariffs on the additional $300 billion of Chinese imports and China retaliates with export restrictions on rare earth minerals. The semi stocks could also be impacted by a weak second-quarter earnings season that reflects the financial impact of the trade war.
Semiconductor stocks have spiraled upwards today. The VanEck Vectors Semiconductor ETF (SMH) is up 4.6% currently, while the iShares PHLX SOX Semiconductor ETF (SOXX) is up 4.9%. Though trade war concerns remain, some stocks like NVIDIA might be undervalued due to their recent declines.
After Broadcom cut its forecast sparking a chip stock selloff, one analyst warns that things might get worse.