Market check: Chip stocks tumble, electric vehicle stocks pare gains

Yahoo Finance's Jared Blikre reports on the markets as the Dow extends gains, the S&P 500 and Nasdaq move lower, and certain sectors tumble.

Video Transcript

KARINA MITCHELL: And here with more market movers and all the action of the day is Yahoo Finance's Jared Blikre. Jared, you have been watching chip stocks and software getting pummeled today.

JARED BLIKRE: That's right, and I was watching chip stocks surge yesterday, so quite the reversal of fortune. I'm looking at AMD in particular on the YFi Interactive, and you can see, this is a two-day chart. And now, after those nice gains posted yesterday on a Goldman note, down 2% for the start of the year.

But I do have some additional commentary from their announcements at CES, which is ongoing. There's a lot of positive analyst commentary surrounding some of these announcements. And here's Rosenblatt. They hold the stock with a buy, recommend it with a buy with a price target of 180. They say the announcements, quote, "confirm a deep and rich progression of a pipeline of innovation." They also feel quite comfortable that AMD will maintain mobile momentum with performance efficiency. And that's versus the competition in 2022.

Also want to quote Wells Fargo. They recommend the stock with an overweight, also a price target of 180, saying AMD's updated traction and notebook CPU design is, quote, "one of the most notable incremental data points from today's announcements from also those positive pricing trends in a higher market share in the gaming PC market."

So go back to our heat map here. We can see a few outperformers. Taiwan Semi was one of the leaders yesterday, and let me just get a two-day chart. Taiwan Semi, you can see holding onto gains of 10% over this time frame, though off its highs. But most of these stocks now, if you put a two-day view, you're going to see a lot more-- well, let's call it down the middle. Not necessarily a lot more red than green, but more red than we are seeing at the close yesterday. And just a quick look at the software space, still really seeing that underperform right now. Guys.

ALEXIS CHRISTOFOROUS: And Jared, another sector of the market that was doing really well yesterday to start the year, the EV makers. They're pulling back today, but we see Ford surging. So what's going on there?

JARED BLIKRE: That's right, and that's off of news about their EV play. That would be the Ford F-150 Lightning. They are accelerating or at least upping their production targets for mid-2023. Here, you can see Ford stock up 10% today, up 16% over the last two days, so pretty impressive there.

And besides the excitement coming out of Ford, we do have some news on auto sales. And here we go-- Toyota outsold GM in 2021. This is notable because it's the first time that GM was not on this top slot since 1931. So you've got to go back 90 years there. They delivered 2.3 million vehicles-- that's Toyota-- versus GM's $2.2 million-- 2.2 million vehicles.

Also, GM sales, they plunged 43% in the fourth quarter. And that's due to the chip shortage that we noted. And then they prioritized some of their most profitable models and are trying to ramp up production of those this year, but having a little bit of a stumble. Also, GM and Hyundai are saying that ship supply and inventories should improve in 2022 gradually. Hyundai said that quarter one won't be that much better.

Now here's GM. I want to show over the last year. You can see it just kind of broke out of its trading range relatively recently, still up 61% over that time frame. And then we'll take a look at Ford once again over that time frame, up 183%. You might think this is a record high-- it's not. Because in 1999 and 2000, they were caught up in what was a bubble at the time and not quite back there yet. Guys.

KARINA MITCHELL: And then, Jared, a bad day for the Reddit crowd as well-- meme stocks taking a tumble.

JARED BLIKRE: That's right, and let's go back to our heat map, where we see a mixed board, but some of the traditional stalwarts of this space that are taking it on the chin. And I want to begin with Robinhood. There is a little bit of controversy over whether or not it is a meme stock, but it's certainly the center of that action. Now here is the high that it had on its second or third day of trading, and you can see it is well off that. And we hit a record low this morning on some of that news. It's down 8% today. And its IPO price was $38. So, even that has been cut in half.

Now you also take a look at GameStop and AMC. Those stocks are each down about 5%. Here's GameStop, and we're going to change this back to a one-year chart. And you can see the original GameStop phenomenon that it got caught up in. And while we're on the subject, might as well check out a chart of GameStop as well. I'm going to reduce this to a two-month view because this is just kind of sideways trending here, but you can see, back down. Doesn't look like a lot of movement here, but this is a very volatile stock. And when it moves, you don't necessarily see it on these charts, but I'm sure as an investor, you feel it, whether it's up or down. Guys.

KARINA MITCHELL: OK, Jared Blikre, thank you so much for that. And we'll see you back in a bit for the oil and energy close later on in the show. Thank you.