|Bid||115.75 x 1400|
|Ask||116.61 x 800|
|Day's Range||116.39 - 117.52|
|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.
Semiconductor chips are amongst the most ubiquitous of items around the globe. Chips are found in every electronic gadget from your phone to your tablets and laptops to televisions and your car or Uber (NYSE:UBER) vehicles. Needless to say, semiconductors are a big market.Source: Shutterstock But it is a market which has many major and minor companies that start from mining operations for raw materials to foundries for the building blocks of chips to various chips themselves. And it continues to the companies that take the chips to build and sell or use the chips in their products and services. This means semiconductor ETFs are an ideal way to play the sector.For investors, there are many, many themes and market strategies for the chips market which can be both bearish and bullish for any given time period. This just increases the need for semiconductor ETFs.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 3 Food Stocks to Buy for Fast and Big Profits Right now, chips are being touted as part of major market developments. It starts with the 5G wireless buildout and rollout. From the data centers to communications networks and all the way through to antennas and devices -- 5G is upping demand for all sorts of chips and related semiconductor materials.Then we have the rapidly developing market for artificial intelligence (AI) and augmented reality (AR) that have great promise for many areas from healthcare to education and manufacturing and even marketing.And new devices keep coming from all corners of the globe from Apple (NASDAQ:AAPL) -even if they don't do any of the heavy lifting in engineering their branded products. And the list goes further including my favorite Samsung electronics (which I have in my Niche Investments section of my model portfolios in Profitable Investing.)And from the gaming to the ever-hyped cryptocurrency mining operations -- graphics processing units (GPUs) remain highly in demand bringing another wave of chips in demand as well.Chips have been on a good run in the stock market. For over the past trailing five years, the industry leaders as tracked by the MVIS U.S. Listed Semiconductor Index have generated a return of 154.69% compared to the S&P 500 Index's return of 69.43%. Chips vs StocksSo, chips are a bigger business than the rest of the broader stock market. This should get your attention and peak your interest in semiconductor ETFs.But at the moment, trade tensions are weighing on many of the leading companies doing the heavy lifting in semiconductors and chips. U.S.-China tensions and trade restrictions on components and products are causing sales headaches beyond just those two nations. And a major trade problem between South Korea and Japan is directly impacting semiconductor material sourcing.That said, if you want to cash in on the ongoing market, stay with the U.S.-centric ETF market. This means that there are two semiconductor ETFs to focus upon. Two U.S. Semiconductor ETFs to BuyThe first is the iShares Semiconductor ETF (NASDAQ:SOXX). It tracks the PHLX Semiconductor Sector Index and does a pretty good job of it with a return over the past five years of 154.06%, compared to the SOX Index return of 160.82%.Some of the variance comes from the expense ratio of 0.47% which is a bit high in my book for such an index-tracking ETF.The second ETF is the VanEck Vectors Semiconductor ETF (NYSEARCA:SMH). This ETF tracks the MVIS US Listed Semiconductor Index. Not surprisingly, the SMH ETF closer tracks its index with the five-year return running at 148.10% compared to the underlying index return of 147.38%.This closer return result is perhaps also due to the underlying cheaper expense ratio of 0.35%. An Alternative Semiconductor ETFInstead of focusing solely on semiconductor ETFs -- another alternative would be to focus on the broader information technology companies. This would provide exposure to semiconductor-related companies as well as software, services and related hardware -- all of which depend on semiconductors in some capacity. This is my approach as I recommend the Vanguard Information Technology ETF (NYSEARCA:VGT).The return of the Vanguard ETF for the past five years has been 139.61%. And 16.42% of the fund is allocated toward semiconductors. It has a geographic allocation of 96.89% to U.S. companies with minor weightings to Ireland where U.S. companies domicile for tax purposes as well as to Israel.The Vanguard ETF actually out-returns the underlying MSCI Index over the trailing five years and runs quite lean with an expense ratio of a mere 0.10%.Now that I've presented my way to invest in the semiconductor technology space with ETF's, perhaps you might like to see more of my market research and recommendations for further safer growth and bigger reliable income. For more, look at my Profitable Investing. Click here to learn more: https://profitableinvesting.investorplace.com/ * 7 Stocks Top Investors Are Buying Now In addition, if you find yourself in San Francisco on August 15 through 17 - please join me at the MoneyShow where I'll be presenting my economic and market analysis and my latest investment themes and recommendations. For more information, click here: https://www.moneyshow.com/Neil George is the editor of Profitable Investing and does not have any holdings in the securities mentioned above More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks Top Investors Are Buying Now * The 10 Best Cryptocurrencies to Keep on Your Radar * 7 Marijuana Penny Stocks That Could Triple (But You Won't Make Money) The post 2 Semiconductor ETFs to Buy to Play the Chip Sector appeared first on InvestorPlace.
Editor's note: This story was previously published in February 2019. It has been updated and republished.Semiconductor stocks proved to be important drivers of the broader technology sector's upside in 2018. Just look at the widely followed PHLX SOX Semiconductor Sector Index, which is up 9.60% year-to-date. Investors looking to profit should consider semiconductor ETFs.Shares of Advanced Micro Devices (NASDAQ:AMD) have recently been buoyed by a spate of bullish analyst commentary, including a round of upward price target revisions.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOn the other hand, there are risks associated with semiconductor stocks and exchange-traded funds (ETFs). Late last year, Morgan Stanley waxed bearish on the semiconductor group:"Memory markets have worsened in recent weeks. For DRAM [memory chip], demand is weakening, inventory and pricing pressures are building, and vendors are struggling to move bits," according to Morgan Stanley. "In NAND [flash memory], there is just too much supply. Earnings risks are emerging from 3Q and our cautious view on memory is playing out."Semiconductor stocks and ETFs are also facing headwinds created by the U.S.- China trade war."The U.S. semiconductor industry will warn President Donald Trump's administration that curbs on exports of chips and equipment to China could damage American jobs," according to Nikkei Asian Review. * 7 Stocks Top Investors Are Buying Now Of course, positive surprises are always possible and negative expectations are not etched in stone. But investors looking to make bullish chip bets can consider these seven semiconductor ETFs -- instead of risking their money in individual chip stocks. iShares PHLX Semiconductor ETF (SOXX)Expense ratio: 0.47% per year, or $47 on a $10,000 investment.One of the largest semiconductor ETFs, the iShares PHLX Semiconductor ETF (NASDAQ:SOXX) targets the aforementioned PHLX SOX Semiconductor Sector Index. This is a cap-weighted fund, meaning it tilts toward the largest semiconductor stocks. Click to Enlarge Source: Shutterstock Qualcomm (NASDAQ:QCOM), NVIDIA and Texas Instruments (NASDAQ:TXN) are the three largest holdings in SOXX, combining for over 26% of the fund's roster. Fortunately for SOXX investors, this semiconductor ETF is not heavily allocated to Micron Technology (NASDAQ:MU), a stock that has been absolutely drubbed in recent sessions.The larger-cap weighting may help undercut some of the volatility in store for semiconductor ETFs and stocks if the U.S.-China trade war continues. VanEck Vectors Semiconductor ETF (SMH)Expense ratio: 0.35% per yearIn general, semiconductor ETFs are focused funds and the VanEck Vectors Semiconductor ETF (NYSEARCA:SMH) is even more focused than rival SOXX. This semiconductor ETF is home to 25 stocks, compared to 30 in SOXX. Click to Enlarge Source: Shutterstock Like SOXX, SMH is somewhat top-heavy, but there are some differences among the semiconductor ETFs' components.The VanEck fund devotes a combined 24.47% of its weight to Taiwan Semiconductor (NYSE:TSM), Intel (NASDAQ:INTC) and NVIDIA. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip SMH's large allocations to semiconductor names like Intel and Taiwan Semiconductor put the fund front-and-center at demand trends for personal computers and related devices as well as mobile phones. SMH's top 10 holdings, a group combining for over 58% of the fund's weight, do not include Advanced Micro Devices. SPDR S&P Semiconductor ETF (XSD)Expense ratio: 0.35% per yearThe semiconductor ETFs mentioned above are cap-weighted funds, but the SPDR S&P Semiconductor ETF (NYSEARCA:XSD) is an equal-weight ETF, a strategy to consider for investors looking for exposure to mid- and small-cap semiconductor names. Click to Enlarge Source: FlickrNone of XSD's 34 holdings exceed weights of 5.79%. Additionally, this semiconductor ETF featured Advanced Micro Devices as its largest holding, a trait not widely found among funds in this category.Owing to the equal-weight methodology, XSD does not feature Intel nor Texas Instruments among its top 10 holdings, making this semiconductor ETF one to consider for investors looking to diversify away from some of the industry's largest names.Invesco Dynamic Semiconductors ETF Expense ratio: 0.61% per yearKeeping with the theme of semiconductor ETFs with non-cap-weighted methodologies, there is the Invesco Dynamic Semiconductors ETF (NYSEARCA:PSI). PSI offers a truly smart beta approach to semiconductor stocks. Click to EnlargeThe Dynamic Semiconductor Intellidex Index, PSI's underlying benchmark, evaluates "companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value," according to Invesco.PSI's exposure to the quality and value factors, in particular, could be of use to investors at a time when analysts and market observers are concerned about the semiconductor industry's outlook into year-end.Additionally, semiconductor stocks are viewed as somewhat overvalued relative to broad equity benchmarks, so PSI's value exposure could be a trait to embrace. Twenty-seven percent of the fund's holdings are classified as value stocks. * 7 Dependable Dividend Stocks to Buy PSI's price-to-earnings ratio of 27.77 is above the comparable metric on SOXX. First Nasdaq Semiconductor ETF (FTXL)Expense ratio: 0.60% per yearThe First Nasdaq Semiconductor ETF (NASDAQ:FTXL) is another smart beta approach to semiconductor ETFs, but with a different approach than the aforementioned PSI. Click to Enlarge Source: Shutterstock FTXL turns two years old this month, making it the youngest semiconductor ETF highlighted here. The fund tracks the Nasdaq U.S. Smart Semiconductor Index. That index employs low volatility, growth and value factors in its stock selection process.FTXL's value trait focuses on cash flow-to-price, while its growth factor emphasizes price appreciation over four time-frames -- ranging from three to 12 months. Even with its smart beta methodology, FTXL's 28 holdings tilt toward the largest semiconductor stocks with Texas Instruments and Intel combining for 15.32% of the fund's weight. SPDR Kensho Intelligent Structures ETF (XKII)Expense ratio: 0.46% per yearThe SPDR Kensho Intelligent Structures ETF (NYSEARCA:XKII) is not a pure semiconductor ETF, but the fund does feature sizable exposure to chip stocks. Among the 14 industry groups represented in XKII, semiconductors is the second-largest at 12.11%. Click to Enlarge Source: Shutterstock XKII components provide exposure to following next-generation investment themes: smart building infrastructure, smart power grids, intelligent transportation infrastructure and intelligent water infrastructure. * 10 Stocks to Sell for an Economic Slowdown XKII's underlying index "goes beyond well-known traditional Industrial firms by including companies involved in intelligent and connected home technologies, smart power grid technology, road sensors, traffic management infrastructure and smart water meters from other GICS sectors," according to State Street Global Advisors (SsgA). ROBO Global Robotics & Automation Index ETF (ROBO)Expense ratio: 0.95% per yearThe ROBO Global Robotics & Automation Index ETF (NASDAQ:ROBO), along with other robotics ETFs, feature some semiconductor exposure because chips are integral parts of many of the products tied to the booming artificial intelligence and robotics investment themes. Click to Enlarge Source: Shutterstock Nearly half of ROBO's 87 holdings are classified as technology stocks. That group includes companies with exposure to artificial intelligence, computer processing, actuation, sensing and integration. All of those endeavors require some use of semiconductors."Some investors still see robotics and AI as niche investments," said ROBO Global. "But more and more, even the most risk-averse among them are realizing that it is a niche that demands a presence in every long-term portfolio. Why? Because the scope of robotics and AI is vast, and the massive impact it will have on every industry in every part of the world is now undeniable."As of this writing, Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? * 7 Strong Buy Stocks With Over 20% Upside * 7 Reasons Stock Buybacks Should Be Illegal The post Top 7 Semiconductor ETFs to Buy Now appeared first on InvestorPlace.
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.