|Bid||0.00 x 800|
|Ask||0.00 x 800|
|Day's Range||191.39 - 192.77|
|52 Week Range||144.79 - 218.00|
|PE Ratio (TTM)||5.45|
|Beta (3Y Monthly)||1.56|
|Expense Ratio (net)||0.47%|
UBS is warning higher tariffs could force 12,000 stores to close within a year, putting more than $40 billion of sales at risk. John Petrides, Managing Director at Point Wealth Management, joins Seana Smith on ‘The Ticker’ to discuss how retailers are competing against ecommerce giants amid trade tensions.
Chip stocks have been on a volatile ride over the past year as investors have struggled to grapple with where exactly the semiconductor industry goes next.The iShares PHLX Semiconductor ETF (NASDAQ:SOXX) rallied to all-time highs in mid-2018 as the industry broadly benefited from record cloud data-center spend, steady PC and smartphone growth, strong global auto growth and burgeoning demand in the AI and IoT end-markets. But, in late 2018, the SOXX ETF tumbled more than 25% on concerns that a slowing global economy was going killing all that robust demand, at the same time that supply was building across the whole sector.Chip stocks shrugged off those fears in early 2019. As the global economy stabilized and recession fears disappeared, so did concerns regarding a slowdown in the semiconductor space. The SOXX ETF rallied back to all-time highs by late April 2019.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThen, another sell-off began. Trade tensions re-escalated. Recession fears came back. So did concerns surrounding global semi demand. Chip stocks sold off. They remain in selloff mode today. As of this writing, the SOXX ETF trades 15% off its April 2019 highs.What's next in this wild trip for chip stocks? Tough to say. But, it is easy to say that these stocks are broadly staring at big demand headwinds in 2019.The PC and smartphone markets globally are flattening out, because everyone who wants either a computer or a smartphone, already has one. Global auto sales are dropping, especially in China, as consumers continue to express caution with the global economy slowing. Big tech companies are likewise acting more cautiously, and record data-center spend in 2018 is coming down in 2019. * 7 Top-Rated Biotech Stocks to Invest In Today Net net, the backdrop isn't great for chip stocks right now. As such, investors should be cautious when considering an investment in any of the following chip stocks. Micron (MU)Source: Shutterstock One of the riskiest chip stocks here and now is memory chip giant Micron (NASDAQ:MU), for the simple reason that the memory market is notoriously and violently cyclical.In the memory market, it's all about supply-demand fundamentals. When demand is high and supply is low, memory chip prices are high, and memory chip-makers make boat loads of profits. But, when demand is low and supply is high, memory chip prices are low, and memory chip-makers make no profits. Unfortunately, supply and demand in the memory market cycle often and dramatically. Eras of high demand and low supply are usually followed by eras of low demand and high supply. Just look at a chart of Micron's profits or stock price over the past two decades.Right now, we are in the process of the memory market going form high demand and low supply, and to rising supply and falling demand. The rising supply part seems to be moderating. But, the falling demand part isn't moderating, mostly because rising geopolitical tensions continue to dilute memory chip demand. So long as that remains true, Micron's profits will continue to drop, and so will MU stock.As such, until the global memory market demand picture turns positive, MU stock will have a tough time staging a big turnaround. Broadcom (AVGO)Source: Shutterstock One of the biggest semiconductor companies in the world, Broadcom (NASDAQ:AVGO), is not exempt from the macro factors diluting demand across the global semi industry.Broadcom just reported solid second-quarter numbers, which broadly topped expectations and included double-digit revenue growth alongside healthy margin expansion. But, management also delivered a significantly sub-par, full-year guide thanks to what they are calling a "broad-based slowdown in the demand environment". The culprit? Rising geopolitical uncertainties that are causing customers to reduce inventory levels.So long as this slowdown persists, AVGO stock will have a tough time rallying. The stock isn't particularly cheap here relative to its historical standard, at 12-times forward earnings today versus a five-year average forward multiple of 13. As such, you have a stock with not-so-good, go-forward fundamentals, trading at a historically average valuation. * The 7 Best Tech Stocks to Buy for the Second Half of 2019 That's not a great combo. Until this stock gets cheaper -- or until the fundamentals improve -- AVGO stock will likely fail to rally. Qualcomm (QCOM)Source: Shutterstock The story at Qualcomm (NASDAQ:QCOM) is riddled with question marks. All those question marks against the backdrop of a depressed semi market backdrop could keep QCOM stock stuck in neutral for the foreseeable future.Qualcomm scored a huge win recently, when Apple settled with the chip giant, paid the company a huge lump sum royalty payment and came back on as a Qualcomm customer. Shortly after that, though, it was ruled that Qualcomm's patent royalty practices violated U.S. antitrust law. That's a big deal, since most of Qualcomm's profits come from the high-margin licensing business. The ruling broadly implies that the licensing business is going to have to change, and in a way that will probably dilute profits.Consequently, investors are stuck asking themselves exactly what Qualcomm's licensing business will look like in a few years. The truth is, no one knows. Investors don't like uncertainty. They especially don't like uncertainty when it comes against the backdrop of a depressed macro semi market struggling with falling demand and geopolitical tensions.To be sure, none of these issues will last for QCOM stock. The stock does look like a good long-term buy here, since long-term fundamentals are healthy. But, near-term uncertainty will ultimately keep QCOM stock depressed for the foreseeable future. Advanced Micro Devices (AMD)Source: AMD The story at Advanced Micro Devices (NASDAQ:AMD) is a bit different than the story supporting other chip stocks at the current moment.Specifically, the story at AMD is actually much better. AMD has taken an innovation lead over competitor Intel (NASDAQ:INTC) in the CPU market, and it has leveraged that innovation lead to rapidly grow market share over the past several quarters. This market share expansion has driven out-sized revenue growth and margin expansion, which has produced robust profit growth. This market share expansion narrative projects to persist for the foreseeable future, meaning AMD should continue to report pretty good numbers.But, this market share expansion is happening in a market that's struggling with falling demand. At the core of this falling demand is reduced cloud data-center spend from the titans of tech. This spend reduction is a temporary phenomena. But, so long as it lasts, AMD's numbers won't be as good as they need to be, to support the stock's near 50-times forward multiple. * 10 Tech Stocks to Buy Now for 2025 As such, while the story at AMD is better than the story for other chip stocks, the stock is not exempt from macro demand headwinds, and those macro demand headwinds could ultimately hinder the richly valued AMD stock from rallying much further. Nvidia (NVDA)Source: Shutterstock When it comes to shares of GPU giant Nvidia (NASDAQ:NVDA), you have a situation of near-term pain and long-term gain.In the near term, Nvidia will continue to struggle with inventory and pricing issues as cloud data-center spend moderates against the backdrop of a slowing global economy and rising geopolitical tensions. So long as these inventory and pricing issues remain, revenue growth at Nvidia will remain tepid, while margins will remain under pressure. NVDA stock will struggle to rally.In the long term, Nvidia will work through these inventory and pricing issues since secular tailwinds support robust demand for the next several years in the data and AI-related markets that Nvidia services. Once those issues are cleared, big revenue growth will come back into the picture, as will margin expansion. This combination will power healthy profit growth, and that healthy profit growth will drive NVDA stock higher.Net net, the situation at Nvidia is one defined by near-term pain and long-term gain. Thus, depending on your time horizon, NVDA stock is either an avoid here, or a good buy. Texas Instruments (TXN)Source: Shutterstock Over at semiconductor giant Texas Instruments (NASDAQ:TXN), you have a chip stock that has worrisome exposure to the slowing global auto market.Texas Instruments views the industrial and auto markets as the best markets in the semiconductor space, and as such, has focused their resources on maximizing exposure to those markets. Over 50% of revenues now come from the auto and industrial markets. Four to five years ago, that number hovered around 40%.The problem here is that the auto market is fading globally. China auto sales have been tumbling for several months. The U.S. auto market has been weak lately, even with low interest rates. The European auto market is seeing declines for the first time since 2013. Broadly, after several years of red-hot growth, the global auto market is in retreat, and that's not good news for Texas Instruments. * The 10 Best Index Funds to Buy and Hold At the same time, TXN stock isn't cheap for a semi stock, trading at 20-times forward earnings. That combination of a not-cheap valuation and mounting headwinds in the company's most important market, ultimately means that TXN stock may not have much room for further upside in the foreseeable future.As of this writing, Luke Lango was long QCOM and INTC. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post 6 Chip Stocks Staring At Big Headwinds in 2019 appeared first on InvestorPlace.
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.
U.S. stocks tracked declines in overseas markets after weak data out of China stoked fears of an economic slowdown in the world’s second-largest economy. Chipmakers broadly declined following a disappointing outlook from Broadcom.
Semiconductor sector exchange traded funds were among the worst performers on Friday, with Broadcom (AVGO) dragging on the segment after the chipmaker painted a dismal outlook that suggested more troubles ahead for an already ailing industry. Broadcom stated that orders have been contracting, signaling that the industry has taken a blow from both the government ban on shipments to Huawei Technologies and the general macroeconomic uncertainty, MarketWatch reports. Broadcom shares declined 6.3% on Friday, testing its long-term resistance at its 200-day simple moving average.
Technology sector exchange traded funds are among the best performers in the recent rebound, with tech stocks posting their best five-day run in seven-and-a-half years, as monetary policy and Mexico trade helped support the risk-on attitude. The widely observed Technology Select Sector SPDR ETF (XLK) , which covers the technology and telecom sector of the S&P 500 Index, has increased 9.0% over the past week, reflecting its best performance since October 2011. The surge in the technology sector has been attributed to an end to threats of tariffs on Mexican-made goods imported to the U.S., along with growing optimism over an interest rate cut out of the Federal Reserve.
Top stocks are rallying on the heels of the Nasdaq composite's Friday follow-through, which means a major shift in IBD's ETF Market Strategy.
Here is a look at the 25 best and 25 worst ETFs from the past week. Traders can use this list to find prospective candidates that have deviated too far from their longer-term trends, thereby serving as potential starting points for those looking to take on either short or long positions. Likewise, traders can also use this list to spot potential trend reversal opportunities that may offer a generous risk/reward. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. To get access to all ETFdb.com premium content, sign up for a free 14-day trial to ETFdb.com Pro.
Advanced Micro Devices (NASDAQ:AMD) stock has held its own in choppy waters over the past month, outperforming both the stock market and other semiconductor names by a wide margin. Since the start of May, the S&P 500 has dropped more than 5%, and the iShares PHLX Semiconductor ETF (NASDAQ:SOXX) is off more than 15%.Source: Shutterstock Over that same stretch, AMD stock has actually risen more than 5%. * The 10 Best Stocks for 2019 -- So Far Why did AMD stock outperform by such a wide margin during the May market rout? A few fundamental catalysts emerged in May, which showed that AMD's non-cyclical market share expansion outlook remains intact. Investors continued to rally behind that outlook, ignoring trade-war worries, causing AMD stock to drift higher.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWill this upturn of AMD stock continue?In the long-run, yes. AMD's market-share expansion will persist for the foreseeable future, and as long as it does, AMD stock can remain well-positioned to reach $50 over the next few years. But in the short-run, the rally in AMD stock will likely be short-circuited yet again around the $30 level.That $30 level is a critical area which the stock hasn't consistently ever held. Long-term growth fundamentals imply that a move over $30 by Advanced Micro Devices stock won't be justified until the end of the year. As a result, while AMD stock will eventually take out the critical $30 level, it won't do so anytime soon. AMD's Growth Outlook Remains HealthyThe long-term growth outlook of AMD has been, still is, and will remain for the foreseeable future healthy enough to move Advanced Micro Devices stock higher in a multi-year window.In a nutshell, AMD is the David of both the computer processing unit (CPU) and graphics processing unit (GPU) worlds. This David is fighting two Goliaths. In the CPU world, the Goliath is Intel (NASDAQ:INTC), which has dominated the PC market for many years, and is now paralleling that dominance in the data center market. Meanwhile, in the GPU world, the Goliath is Nvidia (NASDAQ:NVDA), the graphics chip giant that has dominated the gaming market and is now dominating the artificial intelligence (AI) market.But David is finally putting up a fight against and winning share from Goliath, on both the CPU and GPU fronts, due to its faster innovation, promising product lineup, and expansion into new markets. As a result, AMD has generated healthy revenue growth, margin expansion, and profit growth over the past several years, pushing AMD stock considerably higher.In May, investors got confirmation that AMD's market-share expansion remains as vigorous as ever. The company reported strong first-quarter numbers (on the heels of bad first quarter numbers from Intel), announced an impressive 7nm product road map which analysts said lays the groundwork for further market-share expansion, and won a graphics licensing deal with Samsung.Overall, AMD continues to win share from both Intel and Nvidia. Ultimately, that means its revenues, margins, and profits remain on track to move considerably higher over the next several years. That strong growth will power AMD stock higher. The Rally May Face Turbulence at $30Although AMD stock will head higher over the long-term, the rally may be short-circuited in the near-term at the $30 level.The semiconductor market historically alternates between booms and busts. The past several years have been a boom period. This year, due to escalating trade tensions, oversupply, and falling demand, the sector is in bust mode. Non-cyclical tailwinds should produce another boom period after the current bust ends. But, until 2024, the revenue growth of the semiconductor market will be moderate, averaging in the low-single digit-percentage range.AMD, however, will gain a larger share of that market. Further, AMD has exposure to the market's most important growth areas, including data centers. As a result, its revenue should rise at a fairly steady rate of about 15% over the next several years.Alongside that healthy revenue growth, its gross margins should increase as AMD expands into more lucrative markets with higher-margin products. As its revenues grow, its expense rates should fall, too. Thus, its net profit margins should benefit from a double tailwind of expanding gross margins and falling expense rates.All together, AMD's profits look poised to increase 20%-plus over the next several years. I'm looking at $2.40 as a realistic earnings per share target for this company by 2025.Based on a forward price-earnings multiple of 20, which is average for growth stocks, that equates to a fiscal 2024 price target for AMD stock of $48. Discounted back by 10% per year, that results in a 2019 price target of right around $30. The Bottom Line on AMD StockAMD's growth outlook remains healthy. Investors received confirmation of its healthy growth in May. That's why AMD stock outperformed during last month's market downturn.While AMD stock should head higher in the long-run, the rally will likely be short-circuited in the near-term by valuation concerns at the $30 level. Quite simply, those levels aren't supported by the fundamentals just yet.As a result, investors should sell AMD stock as it closes in on $30, and buy it back on the next dip.As of this writing, Luke Lango was long INTC. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Retailers Including Disney Agree to Ditch On-Call Scheduling * The 10 Best Stocks for 2019 -- So Far * 7 Small-Cap ETFs to Buy Now Compare Brokers The post Can Red-Hot AMD Stock Finally Take Out the $30 Level? appeared first on InvestorPlace.
As China faces the prospect of losing access to American technology, such as semiconductors, the nation is stepping up its own chip game with more resources thrown to help develop the sector. While experts are saying that the U.S. is years ahead of China in terms of chip technology, it could put the hurt on the U.S. if China does catch up. Presently, 16 percent of the semiconductors used in China are produced domestically--half of which are actually made by Chinese firms, according to a report by the Center for Strategic and International Studies.
Even if trade conflicts ease, chip stock are likely to fall further as memory prices plunge, according to several Street bears.
For the first four months of this year, semiconductor stocks and exchange-traded funds (ETFs) were darlings and leaders of the technology sector rally. Then came May and elevated trade tensions between the U.S. and China, the world's two largest economies.Chip ETFs and stocks have been one of the epicenters for trade-related skittishness. This month, the widely followed PHLX Semiconductor Sector Index is down 15.72%. That gauge of semiconductor stocks plunged 6.41% last week and is dangerously close to entering a bear market residing 18% below its 52-week high.Recently, the Commerce Department blacklisted the Chinese telecommunications company Huwaei, meaning the company cannot buy chips from a slew of U.S.-based firms, including many of the marquee components in a slew of major chip ETFs.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"Let's be clear -- we are talking tens of billions of dollars impact," C.J. Muse, senior equity research analyst at Evercore, said in a recent note. "Loss of this business would slow down investments by U.S. chipmakers, thereby reducing the competitiveness of the U.S. semiconductor industry -- and that is a national security issue that the U.S. government needs to consider as well." * 10 Best Stocks to Buy and Hold Forever It is reasonable to expect more near-term headwinds for chip ETFs, but for aggressive investors, the now battered group could hold some appeal. Here are some chip ETFs for risk takers to consider. iShares PHLX Semiconductor ETF (SOXX)Expense Ratio: 0.47%, or $47 annually per $10,000 investedThe iShares PHLX Semiconductor ETF (NASDAQ:SOXX) tracks the aforementioned PHLX Semiconductor Index, so these are tenuous days for one of the largest chip ETFs. Several of the 30 stocks residing in this chip ETF have been caught up in the Huwaei flap, but that could be more of a near-term hurdle than a long-term detriment."Our valuations imply that the Huawei ban will be used as short-term leverage by the U.S. in ongoing negotiations with China involving tariffs and other trade negotiations," said Morningstar in a recent note on semiconductor stocks. "However, our models still assume that the ban won't last in the long term, as it would be highly destructive to technology companies in both China and the U.S., given the complexity and interwoven nature of the tech supply chain."The Huwaei issue is impactful for SOXX components because the Chinese telecom company is one of the largest semiconductor buyers in the world. Qualcomm (NASDAQ:QCOM) and Broadcom (NASDAQ:AVGO), which combine for over 18% of SOXX's weight, have some China exposure that needs to be worked through over the near-term.With Qualcomm, "there could be a risk here that Chinese original-equipment manufacturers don't buy chips or pay royalties (revenue from China was 67% of last fiscal year's revenue). We expect near-term pressure on Qualcomm's financial results will be at the high end of those affected in the semiconductor space," according to Morningstar. SPDR S&P Semiconductor ETF (XSD)Expense Ratio: 0.35%The SPDR S&P Semiconductor ETF (NYSEARCA:XSD) has been less bad than cap-weighted rivals in recent weeks due in part to this chip ETF being an equal-weight fund, meaning XSD is not dominated by the likes of Intel (NASDAQ:INTC) and Qualcomm.The weighted average market value of XSD's 34 holdings is $28 billion, which is lower than the comparable metric on cap-weighted chip ETFs. While none of XSD's holdings command weights of more than 4.40% in the fund, the equal-weight strategy has not been enough to prevent this chip ETF from incurring significant damage in recent weeks. Month-to-date, XSD is lower by 14.60%. * 7 Recession-Proof Stocks to Buy as the Boom Ends "The latest bout of trade tensions around Huawei and the day-to-day tactics of the negotiations will probably lead to another bout of caution that could weigh on June quarterly results and perhaps the September forecasts for many chipmakers," said Morningstar. SPDR Kensho Smart Mobility ETF (XKST)Expense Ratio: 0.46%The SPDR Kensho Smart Mobility ETF (NYSEARCA:XKST) is not a dedicated chip ETF, but this unique fund allocates nearly 13% of its weight to semiconductor stocks and another 4.13% to semiconductor equipment makers and gives investors an avenue for tapping exciting new technology themes.XKST's underlying index "is designed to capture companies whose products and services are driving innovation behind smart transportation, which includes the areas of autonomous and connected vehicle technology, drones and drone technologies used for commercial and civilian applications, and advanced transportation tracking and transport optimization systems," according to State Street.XKST's methodology is working, sort of, as the fund has been significantly less bad than dedicated chip ETFs in the month of May. In addition to its semiconductor exposure, XKST is heavily exposed to various facets of the transportation industry, making this is a highly cyclical ETF.This quasi-chip ETF could be a good buy for investors willing to wait out the current semiconductor shakeout. In other words, be patient and get some better pricing XKST.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for June * 7 Stocks to Buy From One of America's Best Pension Funds * 4 Consumer Staples Stocks for Both Income and Growth Compare Brokers The post 3 Battered Chip ETFs Ready for a Rebound appeared first on InvestorPlace.
I have to give a lot of credit to InvestorPlace contributor Vince Martin. Ahead of Nvidia's (NASDAQ:NVDA) first quarter of fiscal 2019 earnings report, Martin on May 10 advised a cautious approach. No matter what, Q1's numbers had to be astounding to benefit NVDA stock. Just getting a beat against the print wouldn't be enough.Source: Shutterstock That's exactly what happened. The tech firm surprised onlookers when it exceeded both profit and revenue targets. Naturally, NVDA stock jumped during afterhours trading. But that was all the benefit that it received. In the next trading day, shares opened lower and closed down, too.Even worse, the Nvidia stock price continued to see further declines. Since the beginning of this month, the tech firm's shares have lost more than 18% of their value.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut why did NVDA stock become so volatile after a better-than-expected look in Q1? Obviously, the sharply escalating trade war between the U.S. and China levers a huge negative impact. President Trump used language that's strong … even for him. In turn, the Chinese responded with equal disdain. * 6 Stocks to Buy for This Decade's Massive Megatrend But specific to Nvidia stock, the underlying company may have a tough road ahead. During the Q1 disclosure, management refused to affirm their earlier full-year forecast. That's because management admitted that the data-center market looked far less rosier than initially anticipated.As Martin emphasized in his May 10 commentary, Q1 was never about the raw data. Instead, it was an opportunity for management to spark confidence in the Nvidia stock price. Unfortunately, expressing concerns about the data center did exactly the opposite.Still, if you're seeking a long-term contrarian opportunity, NVDA stock has much to like. Here are three of those reasons. Data-center Fallout is Likely ExaggeratedManagement's apprehension about a key market is obviously very significant. At the same time, I'd take it with a grain of salt. You must appreciate what the execs are doing here. Talking up the data center could yield a nearer-term boost for the Nvidia stock price. However, shares will surely crash if the fundamentals don't align in later quarters.More importantly, I don't think the data center is as bad as the bears project. Now, I could bring up data regarding double-digit growth rates. I could also discuss the global implications of cloud-related industries, particularly for the developing world.Rather than dive into the granularity, I'd prefer to look at the bigger picture. We're in the middle of a digital revolution, one that increasingly relies on broader connectivity. To implement these technologies and innovations, we need a robust cloud infrastructure. This requires data centers.To avoid NVDA stock means that the tech race will somehow take a breather. I don't think so. Indeed, the trade war -- which is based on the U.S.-China tech rivalry -- incentivizes companies to focus harder on digitalization. In the end, this benefits Nvidia, along with companies like Micron (NASDAQ:MU) and Intel (NASDAQ:INTC). NVDA Stock Enjoys Other Sector TailwindsIt's tempting to zero in on just data centers for two reasons. Again, data centers represent a multi-billion dollar industry which will only grow bigger. Equally important, data-center businesses contribute to the bottom line in the here and now.This is why Wall Street is punishing NVDA stock. Nvidia is a publicly traded company, not the research arm of a state-funded university. Stakeholders want to see returns, preferably sooner than later. A major money-maker potentially absorbing an uppercut does nothing to shore up confidence.But for patient investors, this discount offers a possibly lucrative opportunity. Nvidia leads research in multiple exciting avenues, such as deep learning and automation. The investments made now will one day shape the future of commerce, transportation and other segments.Of course, this isn't going to happen tomorrow. Still, tomorrow will happen at some point. As such, I think it's short-sighted to only consider the immediate volatility in Nvidia stock and ignore its potential. Crypto is Making a ComebackI can already see the eyes rolling, even among my InvestorPlace colleagues. After crashing spectacularly in late 2017/early 2018, most folks probably think that cryptocurrencies are dead.In fact, one of the reasons why NVDA stock and shares of rival Advanced Micro Devices (NASDAQ:AMD) experienced choppiness last year was due to the crypto hangover. Basically, chipmakers ramped up semiconductor fabrication of crypto-mining-centric processors. But when the digital markets crashed, so too did demand for these processors.Both Nvidia and AMD have largely worked out their crypto-related inventory. However, they may want to grease up the production lines again. Blockchain tokens have witnessed a sentiment surge and I think it's only going to get stronger. Both remain among the top holdings of the 31-stock portfolio of iShares PHLX Semiconductor ETF (NASDAQ:SOXX).Why? It's pure investment psychology. Currently, bitcoin trades hands at just under $8,000. Undoubtedly, the bulls are targeting that nice round number of $10,000. Once there, they will target $20,000, the last record-breaking resistance barrier.After breaching that target … well, you get the idea. The sky's the limit. And high-flying bitcoin can very well take Nvidia stock out of its doldrums.As of this writing, Josh Enomoto is long bitcoin. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Stocks to Buy for This Decade's Massive Megatrend * The 7 Best Stocks to Buy From the IPO ETF * 7 Athletic Apparel Stocks With Marathon Pace Compare Brokers The post 3 Reasons To Buy The Discount In Nvidia Stock appeared first on InvestorPlace.
These strategies for protecting portfolios in the face of an escalating U.S.-China trade war are increasing in popularity.
Semiconductors have taken a 12 percent hit thus far in May after leading the rebound following 2018's fourth-quarter sell-off debacle. According to TradingAnalysis.com founder Todd Gordon, the chips might be down, but it's an opportune time to buy the dip. “The semis have led us on the way down,” said Gordon.
Semiconductor ETFs tested their long-term trend lines on Thursday as the trade-induced, risk-off selling continued with Chinese officials throwing more fuel into the fire. The broad sell-off in the equities market continued Thursday after a Chinese official said the U.S. should “adjust its wrong actions” if it would like to continue negotiations in response to the Trump's administration's restrictions on the telecommunications giant Huawei Technologies, fueling investors’ concerns that Washington and Beijing are moving further apart on a trade deal. U.S. semiconductors were among the hardest hit in the wake of the Huawei blacklisting as chipmakers lost a big customer in Huawei, the world's largest provider of telecommunication equipment, which purchased about $20 billion in semiconductor chips each year.
After years of sagging performance, more active investment managers are now beating their benchmarks, capitalizing on trade-induced volatility.
Below is a look at ETFs that currently offer attractive buying opportunities. The ETFs included in this list are rated as buy candidates for two reasons. First, each of these funds is deemed to be in an uptrend based on the fact that its 50-day moving average is above its 200-day moving average, which are popular indicators for gauging long-term and medium-term trends, respectively. Second, each of these ETFs is also trading below its five-day moving average, thereby offering a near-term 'buy on the dip' opportunity, given the longer-term uptrend at hand. Note that this prospects list also features a liquidity screen by excluding ETFs with average trading volumes below the one million shares mark. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. To get access to all ETFdb.com premium content, sign up for a free 14-day trial to ETFdb.com Pro.
Post U.S. blacklist, Google denied Huawei access to certain updates to the Android system. Here, we study the impact of the ban on some semiconductor ETFs with exposure to Huawei's key U.S. suppliers.
Semiconductor ETFs Fall as US Chip Firms Stop Shipments to HuaweiProgress on Huawei ban On May 16, the United States banned American companies from supplying or transferring technology deemed critical for national security to Chinese telecom
U.S. stocks fell Monday morning as souring U.S.-China trade relations weighed on sentiment throughout global markets. The Dow Jones Industrial Average retreated 0.6%, or 161 points, to 25,597, the S&P 500 index gave up 0.8% at 2,837. while the Nasdaq Composite Index saw the sharpest declines, down 1.6% at 7,691, as chip makers came under pressure. U.S. technology companies have begun to comply with the White House's ban on China's Huawei Technologies Inc., which weighed on the chip sector, with iShares PHLX Semiconductor ETF , seeing sharp declines at Monday's open. Meanwhile, shares of Ford Motor Co. were plunging after the automotive giant said it was planning to eliminate 7,000 salaried jobs around the world by the end of August as part of its Smart Redesign program, according to an email sent to employees that was published by Automotive News. That will cut its workforce by 10% and help it save about $600 million a year, said the email.