Intel steps up auto chip fabrication, Chinese stocks jump, AMC stock surges on box office sales
Yahoo Finance’s Jared Blikre reports on the day's trending tickers.
Video Transcript
- We're going to bring in Jared Blikre now for a look at some of our trending tickers. And we're going to start with Intel because it looks like they're trying to move the needle here with those computer chip shortages that are so adversely affecting the auto industry, Jared. Tell us about that.
JARED BLIKRE: That's right. They're going to allocate one of their plants in Ireland. This would be the County Kildare plant to assisting other chip designers make their chips. And so this is kind of a strike against Taiwan Semi too. They're one of the largest chip fabricators. They take other company's design and actually make them. So this is part of CEOs Pat Gelsinger's strategy here. He announced it today, and we don't know a lot of details.
They're going to convert just an unspecified amount of that plant's output. And this is a problem that is costing automakers $110 billion in lost sales this year alone. So we know there is big money in it and a lot of opportunity.
And you just look at the chip space overall and the increasing percentage that chips are making in cars and also that these cars are buying from the chip industry. So by 2030, more than 20% of the cost to build a premium car is going to be from chips currently it's 4%. So some 4% to 20%. Also the total market for silicon in autos will reach 11% of the entire semiconductor market, totaling $115 billion.
All in all, Intel stock has been going sideways for some time. You're looking at a one month chart. Let's go to a 10 year chart, and we can see about 2017 it reached the $45 price level. And it's just been in the sideways range ever since. So market has yet to be convinced of the turnaround strategy, but this is one leg of it.
- Speaking of turning around I see that US listed Chinese stocks are now at their highest level in, what, about six or seven weeks? What's leading the rebound there?
JARED BLIKRE: Well, I think it's just the lack of any more bad news over the weekend. We did see-- I believe it was Tencent increase its share backs. And you can see that stock is up 6%, 7% here. Let's go to a year to date view of Tencent. And most of the Chinese stocks that we track looks something like this-- they got shaved in half, and now they're rallying. We can see the current prices right here. But they still have a long ways to go.
Also, Didi, after announcing that-- not data. But after it came to light that-- I believe the city of Shanghai is going to be potentially taking them over in kind of a private public partnership. That stock bouncing back. But still, very depressed. We know that Chinese regulators kind of attack the company and questioned whether it was right for pursuing a US listing just days after its IPO.
Now one of my favorite ETF for tracking the tech space in China is KWEB. And that particular stock and-- there we go. That particular ETF is up 4 and 1/2% today. You can see although it's well off its lows here, still has a lot of work to do to reclaim some of those steep losses from this year, Alexis.
- All right. And finally, those meme stocks on the move again to the upside. Namely, I'm seeing AMC, which we know had a pretty big weekend here over Labor Day with lots of folks going back to the theater. Also, Clover Health and costs surging-- what's happening there?
JARED BLIKRE: Yeah. Well, let's start with AMC. We did this about an hour ago. Don't have much to add. They had a blockbuster weekend. The best Labor Day weekend in terms of US ticket sales ever. And you can see that stock is up 6 and 1/2%. We got some other big movers that you mentioned as well. Clover Health-- that stock is up 25%. And although it pales in comparison with this huge move we saw earlier in June, a lot of these stocks have been holding up rather well in the face of potential selling.
One stock that I'm looking at in particular also to the downside today is support.com. We covered this stock just last week or two weeks ago when it had this huge rally. I think it was up something 200% in one day. You can see it's fallen back to Earth somewhat. But you can see this gap, now that it's been filled potentially, this area could act as ford despite the negative price movement today though. Going to have to see if that occurs in the balance of the week or the month.
And then you mentioned costs cost. Cost up 2%. Kind of an OG Reddit name here. And we can see that stock just trading sideways as many of these have for some time, Alexis.
- All right. Thanks a lot, Jared Blikre.
