232.27 +0.48 (0.21%)
After hours: 7:44PM EST
|Bid||232.27 x 1000|
|Ask||243.20 x 1400|
|Day's Range||218.12 - 233.27|
|52 Week Range||175.07 - 269.36|
|PE Ratio (TTM)||13.81|
|YTD Daily Total Return||-9.64%|
|Beta (5Y Monthly)||1.58|
|Expense Ratio (net)||0.46%|
This week, the iShares PHLX Semiconductor ETF (NASDAQ: SOXX), which tracks the widely followed PHLX Semiconductor Index, slumped 11.67% compared to the s&P's 10.7%. Of course, weakness in chip stocks is good news for the Direxion Daily Semiconductor Bear 3X Shares (NYSEARCA: SOXS). On Thursday alone, SOXS surged 13% on more than double the average daily volume.
Stocks sold off across the board amid heightened coronavirus pandemic fears, routing oil, airline, semiconductor and China ETFs.
Exchange-traded funds that track the semiconductor sector were surging to all-time highs Wednesday afternoon after Nvidia Corp. , one of the biggest holdings in many semiconductor funds, surged 5.4%. The biggest such fund, iShares PHLX Semiconductor ETF , which tracks the PHLX Semiconductor Sector Index , was up 2.6%, with Nvidia representing the top holding of the fund at 8.1%, according to FactSet data. The VanEck Vectors Semiconductor ETF , meanwhile, was rising 2.5%, trading at a record, with Nvidia representing its third-largest holding after Intel Corp. and Taiwan Semiconductor Manufacturing Co. Ltd. Nvidia's stock popped to its own all-time high after Bernstein analyst Stacy Rasgon turned bullish on the graphics chip maker, citing upcoming product cycles, near-term catalysts and the resumption of hyperscale spending. Rasgon raised his rating to outperform, after being at market perform for the past year.
One of those has been the semiconductor industry, which in China, forges on despite the rising number of coronavirus cases. “While most industries have shut down, necessities in the medical, food, and logistics industries have carried on working,” a Technode.com report noted. There couldn’t be more of a striking example as to how important the semiconductor industry is to the Chinese government.
The technology ETF sector includes companies focused on the research, development, and sale of a broad range of hardware and software used by consumers and businesses. It includes giants such as Apple, Inc.
Semiconductors power more devices and technology processes every day, finding uses in mobile phones, cars, military weapons, smart technology, and much more. Exchange-traded funds can provide investors with broad exposure to the semiconductor industry.
DEEP DIVE Remember the China-trade fear and sales decline that caused Apple’s stock to plunge? It might seem like ancient history, but the stock bottomed only a year ago. And now, with Apple’s quarterly numbers backing the huge increase in its stock price, it may be time for its biggest suppliers — and other semiconductor companies — to go along for the ride.
Over the last four years, Advanced Micro Devices (NASDAQ:AMD) has been one of the most explosive stocks on the market. In that time, AMD stock has risen from just above $2 to $51, outperforming markets and major competitors.Source: Grzegorz Czapski / Shutterstock.com It was even the top S&P 500 stock of 2019, all as it chipped away at Intel's (NASDAQ:INTC) market dominance.Year-over-year, shares of AMD are now up 158%, as compared to Intel's gain of just 44%. Furthermore, AMD even outperformed the iShares PHLX Semiconductor ETF (NASDAQ:SOXX), which is up 64% YOY, as well.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe first time I weighed in on AMD stock, it traded at $28.90. With it now up to $51 per share, I'm still very bullish with sights set on $70 this year. All as the company continues to chip away at market share from some of the biggest names in the sector, including Intel and NVIDIA (NASDAQ:NVDA). AMD Is Crushing Its CompetitionAMD could have another explosive year, especially as it gains market share from Intel. * Invest in America's Most Trusted Brands With These 7 Stocks to Buy At the moment, Intel has yet to fully ease its processor shortages, which is causing notebook vendors to look to more of its competitions in 2020.Furthermore, AMD may also challenge NVDA dominance in 2020, as well with its "NVIDIA Killer."The company is reportedly developing an advanced high-performance graphics card to challenge NVDA in the high-end GPU market. AMD's expanding GPU portfolio serving every price point is a threat to NVIDIA's dominance.According third-quarter 2019 JPR data, "AMD's market share in discrete GPU shipments came in at 27.08%, up from 25.72% in third-quarter 2018. NVIDIA's market share declined to 72.92% from 74.28% in the same period," as highlighted by Zacks Equity Research.Additionally, another big story for AMD in 2020 are new gaming consoles.New 2020 gaming consoles from Microsoft (NASDAQ:MSFT) and Sony Corporation (NYSE:SNE) due to be launched this year use AMD chips. That alone offers AMD a powerful catalyst. Analysts Still Love the StockWhile nervous on valuation, Cowen analyst Matthew Ramsay reiterated his "outperform" rating on the stock by raising his price target from $47 to $60."With shares up 65% since our last preview, we are increasingly both confident (in fundamentals) and nervous (on valuation)," he wrote. "AMD has now showcased a track record of consistent roadmap execution and stability while offering premier technological specs and TCO [total cost of ownership] to customers seeking a viable x86 alternative to Intel."The analyst also said AMD could generate strong growth with laptops in the future. Also, he added that notebook chip sales will rise to $2.15 billion by 2021 from $1.45 billion in 2019.Additonally, Deutsche Bank analyst Ross Seymore has a "hold" rating on AMD, but raised the price target on AMD from $29 to $40. "We fully expect AMD's strong product/strategic execution to continue in 2020 and 2021," he wrote.Furthermore, Wells Fargo analyst Aaron Rakers also increased his price target to $40 to $48 on gains in the server market."We continue to see AMD's wins in [High Performance Computing] / supercomputing as increasing validation of the company's strong competitive positioning in datacenter CPUs…thus remaining supportive of our positive upside thesis," he wrote. The Bottom Line on AMD StockWith sufficient growth and ability to reduce competitors' market share, there's plenty to like about AMD stock in 2020.While valuation is concerning, I still strongly believe AMD could rally to $70 per share. We'll know more about that potential when the company posts earnings on Jan. 28 after the closing bell, but for now, AMD is a stock to buy.As of this writing, Ian Cooper did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post AMD Stock Could Run 40% Higher Closer to $70 in 2020 appeared first on InvestorPlace.
As most companies in this space have seen no negative earnings estimate revisions and have a favorable Zacks Rank, semiconductor ETFs might continue to see smooth trading in the weeks ahead.
Since Intel last reported earnings on Oct. 24, the company’s stock (ticker: INTC) has risen about 16%, versus the (SOXX)’s 19% return. • Wall Street analysts are predicting that the company will report fourth-quarter adjusted earnings of $1.25 per share and $19.2 billion of revenue. • On Tuesday, Jefferies analyst Mark Lipacis raised his rating for Intel shares to Hold from Underperform.
The Nasdaq composite and Dow Jones led the stock market today as the bull market continued on the first trading day of 2020.
All bets are off for 2020. We could talk about any number of potential growth catalysts or looming hurdles for the new year, but overshadowing them all is the chaos machine of the presidential election. The best ETFs to buy for 2020, as a result, are designed to take advantage of feasible political outcomes, calmly weather the storm or barrel forward regardless of what the new year brings.That's no prophecy of utter doom and gloom, mind you. Indeed, there are plenty of pockets of optimism to be found.2019's slowdown in worldwide economic growth might have kept stocks from roaring even louder than they did, but Morgan Stanley believes global GDP growth will rebound in 2020 - a potential driver for the market. FactSet, meanwhile, reports that the new year's estimated earnings growth rate for the S&P; 500 Index should come in at 9.6%, which is above the 10-year average. (Analysts are even more confident, looking for profit growth "just over 10%," according to Kiplinger's 2020 investing outlook.)That said, even the most hopeful of S&P; 500 targets for 2020 call for roughly 10%-11% returns - most are closer to the 5%-7% range, and a few are calling for flat performance or worse. So while you do want to anchor your portfolio with a few broad, go-anywhere funds, many of the best ETFs for the year ahead will have to attack specific slices of the market.Here are the 20 best ETFs to buy for 2020. This is an intentionally wide selection of ETFs that meet a number of different objectives. We don't suggest investors go out and stash each and every one of these funds in their portfolio; instead, read on and discover which well-built funds best match what you're trying to accomplish, from buy-and-hold income plays to high-risk, high-reward shots. SEE ALSO: The 30 Best Mutual Funds in 401(k) Retirement Plans
The technology sector has been the best-performing sector of 2019 and is heading toward having its best year in a decade driven by chipmakers.
Semiconductor sector-related ETFs have been outperforming, with chipmakers among the top performers of the past decade, as adoption of digital devices proliferates. The semiconductor sector has rallied 377% over the past 10 years, compared to the S&P 500's 182% increase, CNBC reports. Semiconductors now make up some of the most essential products and technologies we use everyday, such as advanced mobile networks, iPhones and the new-generation of artificial intelligence.