Stocks on the move: Intel, GM, Chinese tech

Yahoo Finance’s Jared Blikre breaks down Intel stock rising, GM's newly-announced 400-mile range Silverado EV, and the rough run for Chinese stocks over the last year.

Video Transcript

ALEXIS CHRISTOFOROUS: Let's head straight over to Jared Blikre with a look at some of the stocks making big moves today. And in the last hour, Jared, we were talking to our tech editor, Dan Howley, about what's happening at CES. One of those things, GM, right, now officially part of that EV pickup race with the Silverado.

JARED BLIKRE: That's correct. And it was only yesterday that Ford was having a huge day, in fact, its best day in over a year, that was off of some news about the F-150 Lightning. But here we have GM, and they have released some details that are pretty remarkable about their new electric Silverado. Number one, it's going to have a 400-mile range. That's pretty impressive. And I'm looking at the stock right now. It's only down-- it's down about 2%, so not really benefiting much from this move. You can see over the last three days, though, still up 10%. It did generate some momentum over the last two days.

Now the way this is different from the Ford F-150 Lightning is the Ford battery isn't quite made for the F-150. They backended an existing battery into the frame. Now the GM Silverado is designed from the ground up. And they're saying we started from the ground up with the truck so we can design it with the winning formula for customer requirements. So all in all, have been a pretty eventful CES not only for the electronics market, but also the EV market.

KARINA MITCHELL: And then, Jared, you know, despite chip names really taking a beating in today's session, Intel stock is rising. Analysts positive on a CES keynote.

JARED BLIKRE: That's right. So more news from the CES, and let's go straight to the stock. So the chip market flagging a little bit today. You can see AMD, NVIDIA, Taiwan Semi each down 3%. But Intel getting a boost from this news. And you can see it's up 6% over the last three days.

And I do have some analyst commentary about its new chipset, where it's going head to head with Apple now. Morgan Stanley recommends the stock with an equal weight, price target of $55. They're saying we have been encouraged by the strong benchmarks for Intel's Alder Lake and do think that the innovation pipeline has improved. This is part of the company's turnaround strategy that it has been engaged in for the last year or two.

Also saying the company's aggressive capital spending raises the bar for revenue growth, and that means that the revenue growth keeping a little bit of a flat line here. If that is under pressure, that's probably why Morgan Stanley holds the stock or recommends the stock equal weight.

Finally, another note from Deutsche Bank. This is on all of the presenters at CES in the chip space saying Intel, AMD, and NVIDIA-- excuse me-- they all showcased a robust product outlook heading into 2022 across notebooks, desktops, CPUs, GPUs, automotive, and growing software ecosystem. So chip stocks mainly flagging today, but a positive outlook for the year to come, guys.

ALEXIS CHRISTOFOROUS: Yeah, and just AMD has been on an incredible run. And I know that it was part of Goldman Sach's predictions, positive predictions for tech stocks in 2022. Before we let you go, got to talk China and especially tech stocks in China because they're off to a pretty lousy start as well. We took a look at the Hang Seng Tech Index in our previous hour, where they're seeing their biggest losses since the summertime. So what's behind the sell-off there?

JARED BLIKRE: That's right. We know the China story because we talk about it just about every day, but the latest news is Tencent, which is down 3 and 1/2% right now, down 5% this year so far. They are reducing their stake in a Singapore-based company called Sea Limited. They sold $3 billion worth of stock. And they're cutting their holdings in the firm to 18.7%.

The reason this matters is Tencent is a huge holder in a lot of other Chinese stocks. They own at least 10% of Bilibili, Didi, Pinduoduo, Futu Holdings, and a couple others. That's according to Barclays. So the fear is that this could lead to some wider spreading of Chinese stocks. Just another reason why we're seeing so much selling this year.

ALEXIS CHRISTOFOROUS: All right, I don't want to talk about selling for a minute. I want to talk about buying. What is actually up today? I know the Dow gained for the second day in a row. Real quick, just tell us the sectors before we get over to Brian and those Fed minutes.

JARED BLIKRE: You bet. On the YFi Interactive here, I have the sector action, and it is materials that is now the leader. And it looks like energy is in the number two spot. But if we take a three-day look here, you see energy very much in the forefront. We're going to take a look at that in about 25 minutes, Alexis.