Dernières nouvelles pour iShares Semiconductor ETF (NASDAQ:SOXX)

iShares Semiconductor ETF

Technology

To pursue its objective, the Fund seeks to track the investment results of the NYSE Semiconductor Index (the Underlying Index), which measures the performance of the equity securities of the 30 largest U.S.-listed companies that are classified according to the ICE Uniform Sector Classification schema within the semiconductors industry (as determined by ICE Data Indices, LLC or its affiliates (collectively Index Provider or IDI)). Constituents must also meet other eligibility criteria determined by the Index Provider, including minimum market capitalization and liquidity requirements. Companies classified within the semiconductors industry include companies that either manufacture materials that have electrical conductivity (semiconductors) to be used in electronic applications or utilize LED and OLED technology. The semiconductors industry also includes companies that provide services or equipment associated with semiconductors such as packaging and testing..

Broadcom Inc Common

Nvidia Corp.

Advanced Micro Devices Inc.

Applied Materials, Inc.

Qualcomm Inc.

Kla Corp.

Monolithic Power Systems Inc

Texas Instruments Inc

Taiwan Semiconductor - Adr

Intel Corp.

Wall Street witnessed a positive momentum on Thursday as investor risk appetite remained resilient despite escalating geopolitical tensions in Europe. The market brushed off concerns following a Russian missile strike on a Ukrainian military facility overnight, which came in response to Ukrainian missile <a href="https://www.benzinga.com/24/11/42113449/natural-gas-prices-spike-to-over-1-year-highs-oil-surges-to-70-as-russia-fires-intercontinental-ballistic-missile-to-ukraine">attacks earlier this week. </a>
Russian President Vladimir Putin, in a televised address on Thursday, stated that after the use of long-range missiles from Ukraine, &#8220;the regional conflict gained elements of global one.&#8221;
Major U.S. indices traded higher by midday trading in New York, with standout performances among blue-chip stocks and small-cap equities. 
The Dow Jones Industrial Average surged 500 points, reaching 43,965, marking a 1.3% gain and its strongest session in over two weeks.
The Russell 2000 outperformed with a 1.7% jump, setting up its best day since the post-election rally. 
In contrast, the Nasdaq 100 lagged slightly, rising 0.5%. Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), despite higher-than-expected earnings, failed to spark broader optimism in the tech sector. Meanwhile, shares of Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) tumbled nearly 6% after the Department of Justice (DOJ) mandated the sale of Google Chrome aimed at curbing Google&#8217;s dominant position in search and digital advertising.
Geopolitical uncertainties drove strong gains in the commodities market. <a href="https://www.benzinga.com/news/global/24/11/42118286/7-us-natural-gas-stocks-to-watch-as-henry-hub-prices-surge-50-in-november">Natural gas Henry Hub prices </a>soared 5%, bringing year-to-date gains to over 50% and marking the best monthly performance since July 2022. Crude oil prices also climbed 0.9%, supported by supply concerns.
Gold extended its winning streak, rising 0.7% for its fourth consecutive session of gains as investors sought safe-haven assets.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) continued its rally, rising over 3% and hitting an intraday high of $98,367. The largest cryptocurrency now hovers tantalizingly close to the $100,000 milestone. 
<h1 class="wp-block-heading">Thursday&#8217;s Performance In Major U.S. Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day % chg</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,365.25</td>
<td>1.7%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>43,965.39</td>
<td>1.3%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,949.37</td>
<td>0.5%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>20,739.86</td>
<td>0.4%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 1:00 p.m. ET</figcaption></figure>
According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent111924&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.6% to $593.78.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 1.3% to $439.81.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.3% to $504.89.</li>
<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) soared 1.7% to $234.91.</li>
<li>The&nbsp;Financial Sector Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) outperformed, rising 1.6%. The&nbsp;Communication Services Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>) lagged, down 0.5%.</li>
</ul>
<h1 class="wp-block-heading">Thursday&#8217;s Stock Movers</h1>
<ul>
<li>Nvidia Corp. fell 0.6% despite surpassing Street&#8217;s consensus estimates on both earnings per share and revenue during the third quarter. Analysts have raised price targets with Wedbush at $175, Baird at $195 and Barclays at $160.</li>
<li>Despite the dismal reaction by Nvidia, semiconductor stocks, as tracked by the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) rose 1.9%. Major gainers on Thursday were Micron Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>), up 4.7%; Marvell Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>), up 3.9% and Applied Materials Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMAT#NASDAQ">AMAT</a>), up 3.7%.</li>
<li>PDD Holdings Inc. &#8211; ADR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) tumbled nearly 10% after missing earnings and revenue estimates.</li>
<li>Other stocks reacting to earnings included Deere &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DE#NYSE">DE</a>), up 8.8%; Warner Music Group Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WMG#NASDAQ">WMG</a>), down 8%; Palo Alto Networks Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PANW#NASDAQ">PANW</a>), up 1.4% and Snowflake Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNOW#NYSE">SNOW</a>), up 32%.</li>
<li>Companies slated to report their earnings after the close include Intuit Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTU#NASDAQ">INTU</a>), Copart Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CPRT#NASDAQ">CPRT</a>), Ross Stores Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROSS#NASDAQ">ROSS</a>) and NetApp Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTAP#NASDAQ">NTAP</a>). </li>
</ul>
Read Now:
<ul>
<li><a href="https://www.benzinga.com/news/global/24/11/42118286/7-us-natural-gas-stocks-to-watch-as-henry-hub-prices-surge-50-in-november">7 US Natural Gas Stocks To Watch As Henry Hub Prices Surge 50% In November</a></li>
</ul>
Photo: Shutterstock

Earnings

Large Cap

Macro Economic Events

Sector ETFs

Broad U.S. Equity ETFs

Specialty ETFs

Eurozone

Commodities

Small Cap

Global

Economics

Tech

ETFs

$BTC

AMAT

CPRT

SPDR Dow Jones Industrial Average ETF Trust

GOOG

GOOGL

INTU

MRVL

NTAP

NVDA

PANW

Citigourp Global Markets 2% Protected Notes Linked To The Djia

ROSS

SNOW

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

Small Caps Rally, Alphabet Plummets, Bitcoin Flirts With $100,000: What's Driving Markets Thursday?

Risk aversion dominated Wall Street in the final session of the week, driving <a href="https://www.benzinga.com/markets">sharp losses across major indices</a>.
Investors grappled with growing uncertainties surrounding the economic impacts of Donald Trump's policies and the <a href="https://www.benzinga.com/topic/interest-rates">Federal Reserve&#8217;s next moves.</a>
Fed Chair Jerome Powell's remarks from the previous day weighed heavily on risk assets. Powell signaled no need to lower rates, citing the economy's resilience and emphasizing the importance of fully finishing the inflation jobs. 
Boston Fed President Susan Collins added to the uncertainty on Friday, stating she needs to see additional data before deciding on further rate cuts at the Federal Reserve&#8217;s upcoming policy meeting.
Expectations for a 25-basis-point rate cut in December were significantly scaled back, with odds falling to 59%, down from 82% just a day earlier.
U.S. indices are poised to end the week in negative territory, as optimism fueled by Trump's win fizzled. Tech stocks were hit hardest, with the Nasdaq 100 plunging 2.5%, wiping out its post-election gains. 
Chipmakers tumbled across the board, with the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) reaching a 2-month low, as Applied Materials Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMAT#NASDAQ">AMAT</a>) released a disappointing outlook.
The surge in rate-cut uncertainty and broader economic concerns pushed the CBOE Volatility Index (VIX) up by more than 17%, reflecting heightened market fear.
Treasury yields edged lower, indicating a flight to safe-haven bonds. The drop in yields supported the Japanese yen, which ended a four-day losing streak.
The U.S. dollar eased but remains on track for its seventh consecutive week of gains, marking its longest winning streak since September 2023.
Gold prices remained flat despite falling yields and a softer dollar, failing to act as a hedge in a turbulent session. Meanwhile, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) defied the risk-off sentiment, rising 2.5% to $89,600 in a surprising show of strength.
<h3 class="wp-block-heading">Friday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>43,416.20</td>
<td>-0.8%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,869.72</td>
<td>-1.3%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,302.85</td>
<td>-1.5%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>20,391.40</td>
<td>-2.4%</td>
</tr>
<tr>
<td>CBOE VIX</td>
<td>16.79</td>
<td>17.3%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 1:00 p.m. ET</figcaption></figure>
According to&nbsp;<a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent111424&amp;t=be2bearmibe3na1">Benzinga Pro</a>&nbsp;data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) fell 1.4% to $585.28.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;fell 0.8% to $434.08.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust Series&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) fell 2.5% to $496.12.</li>
<li>The&nbsp;iShares Russell 2000 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) tumbled 1.4% to $228.75.</li>
<li>The&nbsp;Utilities Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLU#NYSE">XLU</a>) outperformed, rising 0.8%. The&nbsp;Technology Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) lagged, down 2.7%.</li>
</ul>
<h3 class="wp-block-heading">Friday&#8217;s Stock Movers</h3>
<ul>
<li>Palantir Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>) skyrocketed 8.4%, on news that the AI-champion will be included in the Nasdaq 100 index. </li>
<li>Walt Disney Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) rose over 4%, fueling stock momentum after the 6.2% gain on Thursday amid stronger than expected earnings. </li>
<li>Alcoa Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AA#NYSE">AA</a>) rallied over 8% after China announced to end its export-tax rebate for aluminum from Dec. 1. </li>
</ul>
Stocks reacting on earnings reports were: 
<ul>
<li>Globant S.A. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLOB#NYSE">GLOB</a>), down 11%. </li>
<li>AST SpaceMobile Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASTS#NASDAQ">ASTS</a>), down 13.8%, </li>
<li>Post Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/POST#NYSE">POST</a>), down 2.8%. </li>
</ul>
Now Read:
<ul>
<li><a href="https://www.benzinga.com/government/regulations/24/11/42013424/trumps-musk-ramaswamy-doge-plan-what-it-means-for-defense-and-it-stocks">Trump&#8217;s DOGE Plan: Goldman Sachs Says Defense Stocks Face Risks, IT Firms Could Win</a></li>
</ul>
Image: Shutterstock

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

Equities

Bonds

Econ #s

ASTS

GLOB

PLTR

POST

Select Sector SPDR-Consumer Discretionary

Stocks Tumble As Traders Rethink Fed's Action, VIX Spikes 17%, Nasdaq Erases Post-Trump Gains: What's Driving Markets Friday?

While the S&amp;P 500 Index continues its post-election surge, breaking through key resistance levels, <a href="https://www.benzinga.com/topic/nasdaq-100">the NASDAQ 100</a> is struggling to keep up.
This catch-up is prompting JPMorgan analyst Jason Hunter to ask: Is this a shift in market leadership or a temporary pause for the tech-heavy index?
<h1 class="wp-block-heading">S&amp;P 500 Breaks Out, NASDAQ 100 Stalls</h1>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="794" height="464" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12121428/Screenshot-2024-11-12-at-10.44.09-PM.png" alt="" class="wp-image-643450" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12121428/Screenshot-2024-11-12-at-10.44.09-PM.png 794w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12121428/Screenshot-2024-11-12-at-10.44.09-PM-300x175.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12121428/Screenshot-2024-11-12-at-10.44.09-PM-768x449.png 768w" sizes="(max-width: 794px) 100vw, 794px" /></figure>
After the S&amp;P 500 re-accelerated through April's channel resistance and the 5850-5878 highs post-election, the index remains firmly bullish, with key support holding in the 5600s. The next resistance levels are now pegged at 6166 and 6194. Meanwhile, the NASDAQ 100 has faced a roadblock, unable to surpass its August rebound high. 
Hunter highlights that despite a broad market rally, the NASDAQ has underperformed, suggesting a potential leadership shift away from tech.
This divergence between the two indices is critical. If the NASDAQ 100 fails to break through its recent range, it would further support the idea that a regime change is in the cards — one where sectors outside of tech, like communication services, could be driving the market forward.
Read Also: <a href="https://www.benzinga.com/trading-ideas/technicals/24/10/41214202/ishares-semiconductor-etf-soxx-approaching-death-cross-despite-recent-gains-should-inves">iShares Semiconductor ETF (SOXX) Approaches Death Cross Despite Recent Gains: Should Investors Worry?</a>
<h1 class="wp-block-heading">Communication Services Steals The Spotlight</h1>
Interestingly, while the NASDAQ 100 as a whole struggles, the Communication Services sector has been leading the charge in the index's breakout. Good news for investors in the iShares U.S. Telecommunications ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#NYSE">IYZ</a>) and the SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>)
Tech and semiconductor stocks have lagged, clustered just below resistance. Relevant for investors in the Vanguard Information Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>), the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>), the Invesco QQQ Trust Series I (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) and the Invesco NASDAQ 100 ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQM#NASDAQ">QQQM</a>).
Hunter's outlook suggests that in the coming weeks these hardware-oriented stocks may get "dragged higher" if the broader market rally continues. The question remains: Will they catch up, or will they continue to underperform as the rally unfolds?
<h1 class="wp-block-heading">Semiconductor Struggles: A Key Test For Tech's Future</h1>
Semiconductors, once at the heart of tech's dominance, have been particularly sluggish. The Philadelphia Semiconductor Index (SOX) has faced stiff resistance at the 5397 July peak and the 5537 78.6% retracement level.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="794" height="464" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12122734/Screenshot-2024-11-12-at-10.57.21-PM.png" alt="" class="wp-image-643479" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12122734/Screenshot-2024-11-12-at-10.57.21-PM.png 794w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12122734/Screenshot-2024-11-12-at-10.57.21-PM-300x175.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12122734/Screenshot-2024-11-12-at-10.57.21-PM-768x449.png 768w" sizes="(max-width: 794px) 100vw, 794px" /></figure>
While it has managed to hold above the 4997 200-day moving average, Hunter is closely watching whether these resistance levels will break.
If the semiconductor sector can't clear this hurdle, it would signal a continuation of the underperformance that has characterized the group since mid-summer. 
On the other hand, if bullish momentum drags semiconductors through these barriers, it could fuel a catch-up rally in tech stocks, reversing the trend of broad market leadership shifting to other sectors.
Investors in the VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>), the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) and the Direxion Daily Semiconductor Bull 3x Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NASDAQ">SOXL</a>) should remain wary of their holdings.
<h1 class="wp-block-heading">Will Tech Stage A Comeback?</h1>
Despite these challenges, Hunter remains optimistic that the post-election bullish momentum could eventually carry tech stocks, particularly semiconductors, back into the leadership role they held for much of the 2022-2024 rally. 
But if semiconductors continue to falter, and the broader market continues to rally without them, it could confirm that the days of tech dominance are coming to an end — at least for the near term.
For now, Hunter is watching for any breakouts in the tech sector, especially in semiconductors, to see if they can reclaim their former leadership position. 
The key levels to watch are the 5397 July gap for the SOX Index and the 21433-22306 range for the NASDAQ 100.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/41911474/russell-2000-rallies-jpmorgan-analyst-says-small-cap-may-outperform-mega-cap-peers">Russell 2000 Rallies, JPMorgan Analyst Says Small Cap May Outperform Mega-Cap Peers</a></li>
</ul>
This image was created using artificial intelligence MidJourney.

Analyst Color

Technicals

Analyst Ratings

Trading Ideas

iShares Dow Jones US Telecommunications Sector Index Fund

QQQM

SOXL

NASDAQ 100 Struggles To Close Gap With S&P 500 During Semiconductor Slowdown

Chip stocks including Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>), Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) Credo Technology Group Holding (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRDO#NASDAQ">CRDO</a>), Lattice Semiconductor Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LSCC#NASDAQ">LSCC</a>), Microchip Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>), Marvell Technology, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>), MACOM Technology Solutions Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MTSI#NASDAQ">MTSI</a>), Micron Technology, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>), Qualcomm Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>), Qorvo, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QRVO#NASDAQ">QRVO</a>), United Microelectronics Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UMC#NYSE">UMC</a>) are trading lower Monday in sympathy with contract chipmaker Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>).
Taiwan Semiconductor stock took a hit after the U.S. Department of Commerce <a target="_blank" href="https://www.benzinga.com/trading-ideas/movers/24/11/41883357/taiwan-semiconductor-stock-drops-as-us-orders-halt-on-ai-chip-sales-to-china" rel="noreferrer noopener">instructed the chipmaker</a> to cease supplying China with sophisticated chips—of 7 nanometers or more advanced designs—that support AI and graphics processing capabilities.
The U.S. move sent jitters across the sector, anticipating further actions from President-elect Donald Trump&#8217;s administration, which had previously attacked the <a target="_blank" href="https://www.benzinga.com/government/regulations/24/11/41845483/taiwan-semiconductor-us-expansion-plans-unfazed-by-trump-win-report" rel="noreferrer noopener">U.S. Chips Act and Taiwan</a>, the hometown of Taiwan Semiconductor.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/earnings/24/11/41877454/monday-com-stock-tanks-despite-q3-beat-raised-outlook" rel="noreferrer noopener">Monday.com Stock Tanks Despite Q3 Beat, Raised Outlook</a>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/11111544/newplot-6.png" alt="" class="wp-image-640861" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/11111544/newplot-6.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/11111544/newplot-6-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Taiwan Semiconductor is a crucial supplier to tech giants like&nbsp;Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and&nbsp;Nvidia.
The semiconductor stocks also got a hit from Edgewater Research analysts, flagging Monolithic Power Systems (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MPWR#NASDAQ">MPWR</a>), which faced a significant setback and sent its stock plunging on Monday.
The analysts noted Monolithic&#8217;s allocation to Nvidia&#8217;s Blackwell GPUs is in jeopardy due to performance problems with its Power Management ICs.
The analysts highlighted that Japanese company Renesas and German firm Infineon have stepped in, receiving rush orders, potentially replacing Monolithic in Nvidia&#8217;s B200 and GB200 SKUs.
Edgewater expressed concern that supply chain partners perceived Monolithic&#8217;s temporary solution as a stopgap measure rather than a complete fix.
Investors can gain exposure to semiconductor stocks through VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action: At the last check on Monday, NVDA stock was trading lower by 1.67% to $145.19, INTC was down 4.16%, and ARM was down 4.07%.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/11/41844770/madison-square-garden-q1-revenue-drops-concerts-impress" target="_blank" rel="noreferrer noopener">Madison Square Garden Q1: Revenue Drops, Concerts Impress</a></li>
</ul>
Photo via Shutterstock

News

Media

AAPL

AVGO

CRDO

INTC

LSCC

MCHP

MPWR

MTSI

QCOM

QRVO

Why Are Chip Stocks Trading Lower On Monday?

Donald Trump has been elected as the 47th president of the United States, defeating his Democratic opponent Kamala Harris. Here&#8217;s a look at where Trump stands on issues surrounding the technology sector and some of the biggest <a href="https://www.benzinga.com/news/24/11/41768178/donald-trump-defeats-kamala-harris-to-win-2024-election">companies on Wall Street.</a>
Tariffs: President-elect Trump <a href="https://www.benzinga.com/startups/24/10/41561517/trump-pushes-forward-with-controversial-tariff-plan-despite-growing-backlash-from-voters-who-strongl">has promoted </a>tariffs of 20% on all imports coming into the country and tariffs as high as 60% on goods made in China. 
Companies like Apple, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) which produces most of its products in China, could be heavily impacted by higher tariffs and may pass those costs onto the consumer as a result. 
Read More: <a href="https://www.benzinga.com/startups/24/10/41561517/trump-pushes-forward-with-controversial-tariff-plan-despite-growing-backlash-from-voters-who-strongl">Trump Pushes Forward With Controversial Tariff Plan Despite Growing Backlash From Voters Who Strongly Oppose It</a>
Chips: The semiconductor industry could be highly effected by Trump&#8217;s potential tariff policies. The Biden administration hiked tariffs on semiconductors<a href="https://www.benzinga.com/news/24/10/41383055/china-launches-probe-into-intel-cites-national-security-risks-amid-trade-tensions-with-us"> imported from China</a> with the rate set to increase to 50% by 2025. It is likely Trump will maintain this policy and perhaps hike the tariffs even higher. 
The <a href="https://www.benzinga.com/government/24/05/38650086/intel-micron-among-winners-in-bidens-280b-chips-act-for-semiconductor-advancement">outgoing administration enacted the</a> CHIPS and Science Act to provide funding for American research, manufacturing and workforce development aimed at boosting domestic semiconductor production. Trump has been highly critical of the CHIPS and Science Act and has suggested that implementing high tariffs would drive chip manufacturers to invest their own resources in establishing production facilities inside the U.S. 
Investors and chipmakers will be watching to see if Trump will attempt to claw back funds promised under the CHIPS Act or dismantle or reduce the program.
Trump has also been a <a href="https://www.benzinga.com/government/24/10/41604100/trump-goes-after-taiwan-semiconductor-on-joe-rogan-podcast">vocal critic</a> of Taiwan Semiconductor Manufacturing Company Ltd.'s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) planned investments in the US, particularly its $40 billion project in Arizona. Once in office, Trump could attempt to cancel or modify the subsidies that have been promised to the company through the CHIPS Act.&nbsp;
Read Next: <a href="https://www.benzinga.com/markets/cryptocurrency/24/11/41770352/bitcoins-future-under-president-elect-donald-trump-a-look-at-his-crypto-policies">Bitcoin&#8217;s Future Under President-Elect Donald Trump: A Look At His Crypto Policies</a>
Investors can monitor the market's reaction to the election results through an ETF that tracks the semiconductor sector, including the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) and the VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>).&nbsp;
DOJ: Under the Biden administration, the Justice Department intensified its scrutiny of major technology companies, particularly in the areas of monopolistic practices and proposed mergers and acquisitions in order to prevent further market concentration. 
Alphabet, Inc.'s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google currently faces multiple antitrust cases brought by the US Department of Justice under the Biden administration and include charges of illegally monopolizing the internet <a href="https://www.benzinga.com/news/24/10/41616230/sundar-pichai-admits-doj-proposals-could-have-unintended-consequences-google-mapping-out-plan-b-in-c">search engine</a> and advertising technology markets. 
A Trump White House — along with a <a href="https://apnews.com/article/congress-elections-house-senate-harris-trump-94b49277db2a5c21f23236794a36afa6">Republican Senate</a> — will likely take a more deregulatory approach to technology and AI when compared to his predecessor. 
Trump has also committed to rolling back Biden&#8217;s executive order on AI regulation, which some conservatives view as government overreach.
AI hyperscalers, like Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) and Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) Amazon Web Services (AWS) will likely face less regulatory oversight under a Trump administration, potentially giving them more freedom in developing and deploying AI technologies.
Markets React: Stock futures are surging Wednesday morning with tech-heavy Nasdaq futures up 1.79% as investors interpret Trump&#8217;s victory as positive for the technology sector. 
AAPL, TSM, GOOG, MSFT, AMZN Price Action: According to data from Benzinga Pro, Apple shares are up 0.42% at $224.40, TSMC shares are down 1.74% at $192.35, Alphabet shares are up 2.26% at $175.29, Microsoft shares are up 1.22% at $416.48 and Amazon shares are up 0.46% at $200.42 in premarket trading Wednesday.
Now Read:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/11/41767200/trump-media-stock-djt-jumps-33-77-in-pre-market-as-ex-president-inches-closer-to-white-house-vic">Trump Media Stock (DJT) Jumps 33.77% In Pre-Market As Ex-President Inches Closer To White House Victory</a></li>
</ul>
Image: Shutterstock

Politics

Movers

General

AMZN

MSFT

Trump's Big Tech Policies: What GOP Victory Means For Apple, Google, Microsoft

Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) remains vulnerable to Taiwan&#8217;s surging electricity prices, a shift that could impact the semiconductor industry.
Once a competitive edge, Taiwan&#8217;s low-cost energy has become more challenging to maintain, leading to increased costs for major industrial consumers, the Financial Times <a target="_blank" href="https://www.ft.com/content/cfd77e84-5d5b-47ae-96bd-9973b1c18662" rel="noreferrer noopener">reports</a>.
Taiwan Semiconductor now anticipates that electricity expenses in Taiwan will surpass those in its other significant locations, including the U.S., Japan, and Germany.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/10/41633790/apple-refreshes-macbook-pro-lineup-with-m4-pro-and-m4-max-3nm-chips" rel="noreferrer noopener">Apple Refreshes MacBook Pro Lineup With M4 Pro and M4 Max 3Nm Chips</a>
<a target="_blank" href="https://www.benzinga.com/markets/equities/24/11/41706702/nvidia-supplier-tsmc-to-double-advanced-chip-packaging-capacity-as-ai-demand-from-microsoft-amaz" rel="noreferrer noopener">Recent reports indicated</a> the chipmaker will double its advanced packaging capacity by 2025, largely to meet the rising demand for AI chips from major tech firms like Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>). The company&#8217;s CoWoS packaging technology is in high demand, with Nvidia expected to use more than half of the expanded capacity.
CFO Wendell Huang recently disclosed to investors that power costs in Taiwan have effectively doubled over the past few years and will likely be Taiwan Semiconductor&#8217;s highest globally by 2024.
Taiwan&#8217;s government has raised electricity prices four times since 2022, with increases primarily affecting industrial users like Taiwan Semiconductor.
In line with its broader energy transition, Taiwan aims to boost renewable energy to supply up to 30% of its power by 2030. However, a recent emphasis on scaling back coal and nuclear power has made it increasingly challenging to meet industrial demands.
According to FT, Taiwan relies on coal and liquefied natural gas for over 80% of its energy supply, with renewable sources accounting for only 9.5%.
The rising electricity rates alone may not significantly hinder Taiwan Semiconductor&#8217;s operations, as power costs constitute a minor portion of its overall expenses. However, consistent supply disruptions could threaten Taiwan Semiconductor&#8217;s ability to expand its production capacity in Taiwan, FT writes.
Taiwan Semiconductor stock has gained 89% year-to-date. Investors can gain exposure to the stock through the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) and the First Trust NASDAQ Technology Dividend Index Fund (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TDIV#NASDAQ">TDIV</a>).
Price Actions:&nbsp;TSM stock traded higher by 1.17% to $193.80 premarket at the last check on Tuesday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/government/24/11/41726213/applied-materials-and-lam-research-shift-supply-chains-away-from-china-to-meet-new-us-guidelines" target="_blank" rel="noreferrer noopener">Applied Materials and Lam Research Shift Supply Chains Away from China to Meet New US Guidelines</a></li>
</ul>
Photo by wakamatsu.h via Shutterstock

Government

Regulations

TDIV

Taiwan Semiconductor Faces Rising Energy Costs, Potential Outages Threaten Production

A hiring freeze in October lifted market expectations for a Federal Reserve interest rate cuts, providing relief to U.S. <a href="https://www.benzinga.com/news/econ-s/24/11/41684710/us-economy-adds-only-12-000-jobs-in-october-sharply-misses-estimates-as-hurricane-strikes-pummel-hir">stocks after Thursday's decline</a>. 
The U.S. economy added only 12,000 jobs in October, 211,000 fewer than in September. This marked the lowest monthly pace since December 2020 and sharply missed estimates of 113,000.
Market pricing now reflects a full probability of a 25-basis-point rate cut at next week's Federal Reserve meeting, with the likelihood of another cut in December surging to 85%, according to the CME FedWatch tool.
<h2 class="wp-block-heading">Hurricanes, Strikes Knock October Employment Down</h2>
Beyond the dismal October employment figures, which suggest a recession-like scenario, factors such as hurricanes and strikes have significantly disrupted hiring across the nation.
Hurricane Helene hit Florida's Gulf Coast on Sept. 26, followed by Hurricane Milton on Oct. 9, prompting widespread evacuations and disrupting multiple economic sectors.
"It is likely that payroll employment estimates in some industries were affected by the hurricanes; however, it is not possible to quantify the net effect on the over-the-month change in national employment, hours, or earnings estimates," the Bureau of Labor Statistics (BLS) stated in its report.
Additionally, layoffs surged in manufacturing, rising to 46,000 — the highest since 2009, excluding the pandemic months of March and April 2020. "Manufacturing employment decreased by 46,000 in October, reflecting a decline of 44,000 in transportation equipment manufacturing largely due to strike activity," the BLS added.
Despite stagnant job growth in October, the unemployment rate held steady at 4.1%, indicating that businesses remain committed to retaining their workforce.
<h3 class="wp-block-heading">Equity ETFs Rise On Rising Rate-Cut Bets</h3>
<ul>
<li>The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), tracking the S&amp;P 500 index, rebounded 0.7% after Thursday&#8217;s 1.9% slump. </li>
<li>The tech-heavy Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), replicating the Nasdaq 100, was 0.6% higher. </li>
<li>Small caps outperformed, with the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) soaring 1.2%. </li>
<li>The Roundhill Magnificent Seven ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MAGS#NASDAQ">MAGS</a>) rose 1.4%. On Thursday, it tumbled 3.9%, marking the sharpest 1-day drop since late July.</li>
<li>Sector-wise, the Consumer Discretionary&nbsp;Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) led gains, up over 2%, fueled by a 6% post-earnings rally from Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>).</li>
<li>The Direxion Daily AMZN Bull 2X Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZU#NASDAQ">AMZU</a>) skyrocketed by 13%. </li>
<li>Rising expectations for Fed rate cuts fueled gains in real estate industries, with the iShares U.S. Home Construction ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ITB#NYSE">ITB</a>) rising 1.8%. </li>
<li>Semiconductors rebounded after tumbling by 3.9% on Thursday. The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) rose 1.6%. Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) was among the best performers following better-than-expected results. </li>
<li>The SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) – the biggest physically-backed gold ETF – also rose 0.5%, rebounding after Thursday&#8217;s 1.6% decline. </li>
<li>The United States Oil Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>), which tracks West Texas Intermediate (WTI) crude performance, gained 1% amid rising geopolitical tensions in the Middle East following Iran&#8217;s retaliatory attack on Israel. </li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/10/41663633/biggest-gold-etf-posts-highest-monthly-inflows-in-2-5-years-as-investors-rush-to-">Biggest Gold ETF Posts Highest Monthly Inflows In 2.5 Years As Investors Rush To Safe Haven Ahead Of Presidential Election</a></li>
</ul>
Photo: Shutterstock

Federal Reserve

AMZU

iShares Dow Jones US Homenstruction Index Fund

MAGS

Stocks Rebound After Selloff As October Hiring Slump Fuels Interest Rate Cut Bets: 10 ETFs To Watch Friday

Wall Street experienced a mixed trading session on Wednesday as investors weigh a batch of corporate earnings <a href="https://www.benzinga.com/economics/macro-economic-events/24/10/41623984/us-economy-grows-less-than-expected-in-q3-yet-private-employment-soars-by-233-000">and fresh economic data.</a>
The U.S. economy grew at an annualized rate of 2.8% in the third quarter, according to advance estimates. This marks a slight deceleration from the previous quarter's 3% pace and falls short of analyst expectations of 3%.
On the employment front, the ADP National Employment report showed private payrolls surged by 233,000 in October —well above the 115,000 forecast and a significant increase from the revised 159,000 in September. This stronger-than-expected job growth underscores the resilience of the labor market ahead of Friday&#8217;s official jobs report.
In corporate news, Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) dropped 10% after posting quarterly results that met expectations but failed to excite investors. The decline in AMD shares dragged down the broader semiconductor sector, with the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) sliding over 3%.
In contrast, Alphabet Inc. jumped more than 5% following a robust earnings report that beat Wall Street expectations, boosting optimism around mega-cap tech stocks.
At midday, major U.S. indexes were trading mixed. The S&amp;P 500 and the tech-heavy Nasdaq 100 remained flat, while the small-cap Russell 2000 outperformed with a 0.5% gain.
Gold prices extended all-time highs, up 0.5% to $2,787 per ounce. Oil prices surged 2%, fueled by supply concerns.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) eased 0.8% to $72,100, pulling back from recent highs.
<h3 class="wp-block-heading">Wednesday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices </td>
<td>Price</td>
<td>1-day %</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,246.40</td>
<td>0.4%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>42,309.80</td>
<td>0.2%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,838.86</td>
<td>0.1 %</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>20,505.98</td>
<td>-0.1%</td>
</tr>
</tbody>
</table>
</figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent103024&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) inched 0.1% higher to $582.16.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 0.2% to $423.25.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) eased 0.2% to $499.18.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rose 0.5% to $222.76.</li>
<li>The Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>) outperformed, up by 1.3%. The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) lagged, down 0.9%.</li>
</ul>
<h3 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h3>
<ul>
<li>Super Micro Computer Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) tumbled 33% after auditors Ernst &amp; Young announced their resignation amid reporting issues, five days ahead of the company&#8217;s earnings report. </li>
</ul>
Large-cap stocks reacting to earnings were:
<ul>
<li>Eli Lilly and Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>), down 8%, </li>
<li>Visa Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/V#NYSE">V</a>), up 3.6%, </li>
<li>AbbVie Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABBV#NYSE">ABBV</a>) up over 5%, </li>
<li>Caterpillar Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAT#NYSE">CAT</a>), down 1.4%, </li>
<li>Chubb Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CB#NYSE">CB</a>), down 1%,</li>
<li>Mondelez International Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MDLZ#NASDAQ">MDLZ</a>), up 1%, </li>
<li>Chipotle Mexican Grill Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CMG#NYSE">CMG</a>), down over 7%, </li>
<li>Snap Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNAP#NYSE">SNAP</a>), up 15%,</li>
<li>Reddit Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDDT#NYSE">RDDT</a>), up 38%, </li>
<li>Automatic Data Processing Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADP#NASDAQ">ADP</a>), up 1%, </li>
<li>Garmin Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GRMN#NYSE">GRMN</a>), up 24%. </li>
</ul>
Major companies reporting earnings after the close Wednesday include Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>), Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Amgen Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMGN#NASDAQ">AMGN</a>), and Booking Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BKNG#NASDAQ">BKNG</a>).
Read Next:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/10/41629264/alphabets-earnings-rally-pushes-magnificent-7-market-cap-to-record-16-8-trillion-10-tech-heavy-e">Alphabet&#8217;s Earnings Rally Pushes Magnificent 7 Market Cap To Record $16.8 Trillion: 10 Tech-Heavy ETFs Moving Wednesday</a></li>
</ul>
Photo via Shutterstock.

Markets

ABBV

AMGN

BKNG

GRMN

MDLZ

RDDT

SMCI

SNAP

Wall Street Mixed, Semiconductors Tumble As AMD Disappoints, Alphabet Rallies, SMCI Plummets: What's Driving Markets Wednesday?

Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) is set to report third-quarter 2024 earnings on Tuesday, Oct. 29, after the market close. 
The third-largest U.S. semiconductor company by market capitalization—behind Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>)—has significantly lagged behind its industry <a href="https://www.benzinga.com/topic/semiconductors">peers year to date. </a>
Will AMD&#8217;s third-quarter earnings signal an inflection point, setting the stage for a comeback, or will the performance gap with top competitors continue to widen from here?
Chart: AMD Has Sharply Underperformed Nvidia Year To Date
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="503" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28103055/image-279-1024x503.png" alt="" class="wp-image-617297" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28103055/image-279-1024x503.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28103055/image-279-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28103055/image-279-768x377.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28103055/image-279-1536x754.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/28103055/image-279.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">Wall Street Expectations For AMD Earnings, Revenue In Q3 2024</h3>
Wall Street anticipates AMD to report adjusted earnings per share (EPS) of 92 cents for the third quarter of 2024, reflecting a robust 31% increase from 70 cents in the same quarter last year, as per Benzinga Pro data.
GAAP revenue is projected to reach $6.71 billion, a 16% year-over-year increase from $5.8 billion in the third quarter of 2023.
<h3 class="wp-block-heading">A Positive Track Records Of Earnings Beats, Yet With Mixed Stock Reactions </h3>
Over the last eight quarters, AMD has consistently, yet marginally, beaten EPS expectations in seven out of eight reports, with the only miss occurring in the third quarter of 2022 (-1.47%).
Revenue has also largely exceeded expectations, with positive surprises in seven quarters, the largest being a 7.31% beat in Q1 2024. 
However, the stock's one-day price reaction has been mixed, demonstrating significant volatility. 
While strong quarterly beats drove substantial gains in the third quarter of 2023 (+9.69%) and the fourth quarter of 2022 (+12.63%), other quarters saw sharp declines despite solid results, such as the first quarter of 2024, where the stock dropped 8.91% following both a strong EPS beat of 8.77% and a 7.31% revenue surprise.
Strong positive stock reactions occurred in the third quarter of 2023 (+9.69%) and the fourth quarter of 2022 (+12.63%).
Negative reactions were recorded in the first quarter 2024 (-8.91%) and the first quarter of 2023 (-9.22%), despite substantial EPS and revenue beats, suggesting investor concerns about guidance-related issues
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<th>Quarter</th>
<th>Reported Adj. EPS</th>
<th>EPS Surprise</th>
<th>Revenue</th>
<th>Revenue Surprise</th>
<th>1-Day $AMD Reaction</th>
</tr>
<tr>
<td>Q2 2024</td>
<td>0.69</td>
<td>1.47%</td>
<td>5.835B</td>
<td>1.94%</td>
<td>4.36%</td>
</tr>
<tr>
<td>Q1 2024</td>
<td>0.62</td>
<td>8.77%</td>
<td>5.473B</td>
<td>7.31%</td>
<td>-8.91%</td>
</tr>
<tr>
<td>Q4 2023</td>
<td>0.77</td>
<td>In line</td>
<td>6.168B</td>
<td>0.78%</td>
<td>-2.54%</td>
</tr>
<tr>
<td>Q3 2023</td>
<td>0.70</td>
<td>2.94%</td>
<td>5.8B</td>
<td>1.93%</td>
<td>9.69%</td>
</tr>
<tr>
<td>Q2 2023</td>
<td>0.58</td>
<td>1.75%</td>
<td>5.359B</td>
<td>0.92%</td>
<td>-7.02%</td>
</tr>
<tr>
<td>Q1 2023</td>
<td>0.60</td>
<td>7.14%</td>
<td>5.353B</td>
<td>1%</td>
<td>-9.22%</td>
</tr>
<tr>
<td>Q4 2022</td>
<td>0.69</td>
<td>2.99%</td>
<td>5.599B</td>
<td>1.80%</td>
<td>12.63%</td>
</tr>
<tr>
<td>Q3 2022</td>
<td>0.67</td>
<td>-1.47%</td>
<td>5.565B</td>
<td>-0.98%</td>
<td>-1.73%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data: Benzinga Pro</figcaption></figure>
<h3 class="wp-block-heading">Rosenblatt Securities: 60% Upside Potential With Server And GPU Gains</h3>
Rosenblatt analyst Hans Mosesmann is optimistic about AMD's ability to meet and slightly exceed the Street&#8217;s expectations.
Mosesmann indicated that AMD's EPYC server CPUs and MI300 AI GPUs are on a positive trajectory, particularly in light of expanding market share in the high-performance computing space. However, he expects "slight growth" in embedded segments and double-digit declines in gaming consoles, which could act as a drag on AMD's overall performance.
"We believe the shares are set to outperform the group after several quarters of skepticism around MI300's market share potential and mixed quarter results," Mosesmann said. 
Rosenblatt maintains a bullish 12-month price target of $250, implying a potential 60% upside from current levels.
<h3 class="wp-block-heading">Goldman Sachs: Long-Term Optimism on AI Infrastructure and Server CPU Share</h3>
Goldman Sachs analyst Toshiya Hari indicated that AMD has underperformed due to downward revisions in consensus EPS estimates for 2024, which have dropped 9% since the beginning of the year, while competitors like NVIDIA have seen significant upward EPS revisions.
"We maintain our Buy rating on AMD given our expectation for sustained growth in AI infrastructure capex, a cyclical recovery in server CPUs, and continued market share gains in Enterprise," Hari said. 
He highlighted AMD's increasing x86 server CPU market share, which rose to 34% as of Q2 2024, from less than 20% in early 2022. 
Goldman Sachs estimates that AMD's upcoming next-generation server CPUs could further solidify its edge over Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) in total cost of ownership (TCO) and efficiency.
<h3 class="wp-block-heading">ETFs With Significant AMD Exposure</h3>
Investors looking for indirect exposure to AMD's performance may consider ETFs heavily weighted in AMD. 
Below are the top 10 ETFs with the largest allocations in AMD shares:
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF Holding $AMD</th>
<th>Weight in AMD (%)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Simplify Volt RoboCar Disruption and Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCAR#NYSE">VCAR</a>)</td>
<td>9.80%</td>
</tr>
<tr>
<td>AOT Growth and Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AOTG#NYSE">AOTG</a>)</td>
<td>8.50%</td>
</tr>
<tr>
<td>Strive U.S. Semiconductor ETF (ARCA SHOC)</td>
<td>8.39%</td>
</tr>
<tr>
<td>iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>)</td>
<td>8.38%</td>
</tr>
<tr>
<td>Invesco PHLX Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXQ#NYSE">SOXQ</a>)</td>
<td>8.27%</td>
</tr>
<tr>
<td>VanEck Video Gaming and Esports ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESPO#NYSE">ESPO</a>)</td>
<td>7.86%</td>
</tr>
<tr>
<td>Invesco AI and Next Gen ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IGPT#NYSE">IGPT</a>)</td>
<td>7.79%</td>
</tr>
<tr>
<td>Spear Alpha ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPRX#NYSE">SPRX</a>)</td>
<td>7.48%</td>
</tr>
<tr>
<td>REX FANG &amp; Innovation Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NYSE">FEPI</a>)</td>
<td>6.47%</td>
</tr>
<tr>
<td>Direxion Daily Semiconductor Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>)</td>
<td>5.92%</td>
</tr>
</tbody>
</table>
</figure>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/10/41573947/on-semiconductor-q3-earnings-revenue-and-eps-beat-amid-19-topline-drop-and-margin-pressure-eyes-gro">ON Semiconductor Q3 Earnings: Revenue And EPS Beat Amid 19% Topline Drop and Margin Pressure, Eyes Growth in Automotive &amp; AI Markets</a></li>
</ul>
Photo: Shutterstock

Gaming

AOTG

ESPO

FEPI

IGPT

SOXQ

SPRX

Simplify Volt RoboCar Disruption and Tech ETF

VCAR

AMD Q3 Earnings Preview: Can AI, Server Gains Help Narrow The Semiconductor Gap With Nvidia?

Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) accomplished better-than-expected production yields at its first Arizona plant than at its Taiwan facilities, which is a crucial yardstick for a plant&#8217;s profitability.
The contract chipmaker&#8217;s Phoenix facility reported yields roughly 400 bps above those at home, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-10-24/tsmc-s-arizona-chip-production-yields-surpass-taiwan-s-a-win-for-us-push?srnd=phx-technology&amp;sref=TBDibEcD" rel="noreferrer noopener">cites</a> head of Taiwan Semiconductor&#8217;s U.S. division Rick Cassidy.
<a target="_blank" href="https://www.benzinga.com/government/24/09/40773084/taiwan-semiconductors-us-plant-matches-taiwan-production-yields-stock-gains" rel="noreferrer noopener">Prior reports indicated</a> Taiwan Semiconductor&#8217;s production yield at the Arizona facility matched its Taiwan facilities.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/10/41494373/whats-going-on-with-nvidia-stock-on-wednesday" rel="noreferrer noopener">Nvidia CEO Jensen Huang Admits TSMC Helped Fix AI Chip Flaw, Delaying Key Shipments</a>
The contract chipmaker&#8217;s update coincides with tensions over a possible violation of the <a target="_blank" href="https://www.benzinga.com/government/24/10/41518452/taiwan-semiconductor-halts-shipments-after-huawei-link-discovered-us-sanctions-cited" rel="noreferrer noopener">U.S. semiconductor embargo</a> on China, rendering the chipmaker vulnerable to regulatory scrutiny.
Taiwan Semiconductor stopped shipments to a customer after finding its chips had reached Huawei Technologies Co. The U.S. semiconductor ban on China has led to illegal attempts by Chinese firms to access restricted chips.
Huawei, a leading provider of 5G network equipment, has been a focal point in the tech standoff between Beijing and Washington since the U.S. imposed sanctions in 2019 over alleged espionage concerns, which Huawei denies.
Taiwan Semiconductor, a key U.S. CHIPS Act contender, is seeking $6.6 billion in U.S. grants, $5 billion in loans, and substantial tax credits to build three fabrication plants (fabs) in Arizona.
Cassidy told Bloomberg Taiwan Semiconductor that they may consider expanding further in the U.S., contingent on additional government support. The Phoenix complex has the potential for at least six fabs.
Taiwan Semiconductor&#8217;s Arizona site initially battled labor shortages and safety issues, delaying the production timeline.
Also this week Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) chief Jensen Huang <a target="_blank" href="https://www.benzinga.com/news/24/10/41494373/whats-going-on-with-nvidia-stock-on-wednesday" rel="noreferrer noopener">acknowledged the resolution</a> of a Blackwell chip flaw thanks to its longtime partner Taiwan Semiconductor.
He also admitted that everything is going fine with its partner, snubbing reports hinting at possible friction between the companies.
Needham&nbsp;analyst Charles Shi expects Taiwan Semiconductor to reach a <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41408200/this-bullish-analyst-highlights-taiwan-semis-3nm-strength-and-margin-expansion-pote" rel="noreferrer noopener">revenue of $90 billion</a> in fiscal 2024 following upbeat third-quarter print led by 3nm thanks to Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>).
He expects the revenue to hit at least $110 billion in fiscal 2025 (up from $96 billion) and the margin to return to 60% in the second half of 2025.
Taiwan Semiconductor stock gained 126% in the last 12 months. Investors can gain exposure to the semiconductor sector through VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action:&nbsp;TSM stock traded higher by 2.29% at $202.46 at the last check on Friday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/government/24/10/41516084/nvidia-chases-growth-in-india-ai-partnerships-with-reliance-infosys-wipro-expanding-into-robotics-an" target="_blank" rel="noreferrer noopener">Nvidia Chases Growth in India: AI Partnerships With Reliance, Infosys, Wipro, Expanding into Robotics And Key Industries</a></li>
</ul>
Image via Shutterstock

USA Scores Big Win Taiwan Semiconductor Arizona Plant, Sees Good Production Yields

As Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) hit all-time highs with 234.09% returns in the past year, several exchange-traded funds (ETFs) associated with the Jensen Huang-led chip giant have also demonstrated remarkable growth during the same time frame, reflecting the company&#8217;s significant market influence.
What Happened: According to <a href="https://www.vaneck.com/us/en/investments/semiconductor-etf-smh/holdings/">Benzinga Pro</a>, the GraniteShares 2x Long NVDA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDL#NASDAQ">NVDL</a>) being entirely invested in Nvidia, saw a remarkable increase of 479.94%.
Meanwhile, ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>), which has a 53.92% stake in Nvidia, climbed by 290.18%.
The Direxion Daily Semiconductor Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) with an 8.15% holding in Nvidia surged by 111.65%, while the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) rose by 50.49%, holding 9.69% in Nvidia. The Strive US Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHOC#NYSE">SHOC</a>) which maintains a 26.04% Nvidia holding, increased by 51.19%.
See Also: <a href="https://www.benzinga.com/general/entertainment/24/10/41348553/jay-z-praised-by-warren-buffett-as-the-guy-to-learn-from-once-said-he-wasnt-taught-emotiona?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Jay-Z, Praised by Warren Buffett as &#8216;The Guy to Learn From,&#8217; Once Said He Wasn&#8217;t Taught Emotional Intelligence, But How To Survive — The Rap Legend&#8217;s Growth Has Made Him Not Just A Better Person, But Also Worth $2.5B Today</a>
The Simplify Volt RoboCar Disruption (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCAR#NYSE">VCAR</a>) gained 34.66%, with 22.83% invested in Nvidia. Lastly, the VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) rose by 76.50%, holding 22.69% in Nvidia.
Why It Matters: The impressive performance of Nvidia-linked ETFs can be attributed to the company&#8217;s strong market position and the increasing demand for its products. Recently, <a href="https://www.benzinga.com/news/24/10/41437976/nvidia-stock-hits-all-time-high-ahead-of-big-tech-earnings-whats-going-on">Nvidia&#8217;s stock reached an all-time high</a>, driven by the surge in artificial intelligence demand. Since the beginning of the year, Nvidia shares have risen over 186%, showcasing the company&#8217;s significant growth trajectory.
Furthermore, <a href="https://www.benzinga.com/government/24/10/41462536/nvidia-accelerates-global-growth-eyes-ai-chip-development-in-india-and-expansion-in-thailand">Nvidia is expanding globally</a>, with plans to develop AI chips in India and expand in Thailand. This strategic expansion aims to bolster domestic semiconductor supply chains, further solidifying Nvidia&#8217;s market dominance.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/10/41420178/bitcoin-ethereum-dogecoin-on-the-rise-as-uptober-may-be-finally-here-analysts-predict-bull?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Bitcoin, Ethereum, Dogecoin On The Rise As &#8216;Uptober&#8217; May Be Finally Here: Analysts Predict Bullish Breakout For King Crypto, ETH&#8217;s Rally To $3,300</a></li>
</ul>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image via Shutterstock

NVDL

EA Series Trust Strive U.S. Semiconductor ETF

SHOC

While Nvidia Shares Are Hitting All-Time High With Over 230% Return In The Past Year, Some ETFs Linked To Jensen Huang's Chip Giant Have Surged By Almost 500%: Here's More

Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) continues to be Bank of America&#8217;s top stock pick within the artificial intelligence (AI) universe, with analyst Vivek Arya labeling the company <a href="https://www.benzinga.com/news/24/10/41405124/whats-going-on-with-nvidia-stock-on-friday">as a &#8220;generational opportunity.&#8221; </a>
On Thursday, the investment bank raised its price target for the company from $165 to $190. This implies a 40% upside compared to current market prices, on the heels of Nvidia's &#8220;dominant market position in AI chips&#8221; and future AI-driven growth.
<h3 class="wp-block-heading">Bank Of America Raises Earnings Estimates On Nvidia</h3>
Arya significantly boosted Nvidia&#8217;s earnings forecasts for 2025 and 2026 by 13% to 20%. He also highlighted the company&#8217;s &#8220;strong competitive lead&#8221; in the AI sector, controlling 80-85% of the market.
The analyst estimated that Nvidia could tap into a total addressable market (TAM) of over $400 billion by 2024. That&#8217;s four times larger than what was previously projected.
Several recent industry developments have also reinforced Bank of America's confidence in Nvidia&#8217;s long-term prospects. 
Among these are strong earnings from key suppliers like Taiwan Semiconductor Company Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NASDAQ">TSM</a>) and Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>)&#8217;s recent AI event, alongside meetings with tech giants like Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), Micron Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>), and key players in optical technologies. 
Recent reports from TSMC confirm that demand for AI technologies is robust and will likely remain so for years to come.
According to Nvidia management, demand for the company's next-generation Blackwell chips is &#8220;insane,&#8221; further supporting the bullish outlook.
The report also highlights Nvidia's &#8220;extraordinary cash generation potential.&#8221; Arya predicts the company could generate over $200 billion in &#8220;free cash flow&#8221; (FCF) over the next two years, with margins of 45-50%—almost double the average of the so-called &#8220;Magnificent 7&#8221; tech stocks, which includes giants like Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Microsoft Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NYSE">MSFT</a>). 
<h3 class="wp-block-heading">Undervalued Partnerships And Revenue Growth</h3>
Arya also indicate that Nvidia's growing enterprise partnerships with companies such as Accenture plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACN#NYSE">ACN</a>), ServiceNow Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOW#NYSE">NOW</a>), and Oracle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NYSE">ORCL</a>) are &#8220;undervalued by the market.&#8221; 
Beyond its hardware dominance, Nvidia&#8217;s software offerings, like its Networking Interface Modules (NIMs), are critical components in maintaining its leadership in AI infrastructure. These partnerships are expected to drive further expansion across multiple industries.
Despite NVIDIA's strong growth outlook and market dominance, Arya believes its &#8220;valuation remains attractive.&#8221; He calculates that NVIDIA's price-to-earnings growth (PEG) ratio for 2025 is just 0.6x, well below the average PEG ratio of 1.9x for the &#8220;Magnificent 7&#8221; stocks.
<h3 class="wp-block-heading">Market Reactions</h3>
Shares of Nvidia rose 0.84% on Friday to $138, just a hair&#8217;s breadth away from its record high of $140.89 set the previous day.
The iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>) slipped 0.1%, poised for a weekly decline of about 2.8%, following Wednesday&#8217;s selloff sparked by negative market reactions to ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>)&#8217;s early earnings release.
Read Now:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41402089/goldman-sachs-highlights-20-top-short-squeeze-opportunities-for-q3-earnings-season">Goldman Sachs Highlights 20 Top Short-Squeeze Opportunities For Q3 Earnings Season</a></li>
</ul>

Mid Cap

Price Target

ASML

ORCL

AI Creates 'Generational Opportunity': Why Nvidia Analyst Says Stock Will Hit $190

On Friday, Gene Munster shared his insights on the ongoing AI market dynamics after key Nvidia supplier Taiwan Semiconductor Manufacturing Company Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) reported <a href="https://www.benzinga.com/news/earnings/24/10/41373163/nvidia-supplier-tsmc-reports-q3-revenue-earnings-beat-amid-rising-demand-for-ai-chips">impressive third-quarter performance</a>.
What Happened: Munster took to X and emphasized the importance of focusing on the broader AI landscape rather than short-term fluctuations. He pointed out that just two days prior, concerns arose among investors regarding a potential slowdown in the AI sector. This was sparked by ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) reducing its 2025 revenue forecast by approximately 18%. The prevailing theory suggested that a decline in demand for AI chip-making machines could indicate a slowdown in AI chip demand.
See Also: <a href="https://www.benzinga.com/news/24/09/40974511/iphone-15-pro-models-and-iphone-13-discontinued-by-apple-heres-why?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">iPhone 15 Pro Models and iPhone 13 Discontinued By Apple: Here&#8217;s Why</a>
However that was not the case. Munster highlighted that TSMC saw a 10% surge in its stock price after announcing a 6% increase in December revenue projections. TSMC also reported that its demand for CoWoS, a key AI technology, is outpacing its supply capabilities, despite efforts to double capacity annually. 
Munster stated, &#8220;I still believe we&#8217;re in front of a 2-4 year bull market driven by AI.&#8221;
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Today&#39;s another case study on why it&#39;s important to stay focused on the big AI picture versus the day-to-day noise. Two days ago, investors were concerned that the AI trade was starting to slow, based on <a href="https://twitter.com/search?q=%24ASML&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ASML</a> guiding 2025 revenue down by about 18%. The theory was that if the…
&mdash; Gene Munster (@munster_gene) <a href="https://twitter.com/munster_gene/status/1847010578017190048?ref_src=twsrc%5Etfw">October 17, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Why It Matters: Munster&#8217;s comments come in the wake of TSMC&#8217;s impressive third-quarter results, which exceeded expectations due to robust demand for AI chips. TSMC&#8217;s revenue for the quarter reached NT$759.69 billion ($23.50 billion), marking a 39% year-over-year increase. This growth underscores the strong demand for advanced processor node technologies used in AI applications.
Additionally, Munster had previously addressed the market&#8217;s reaction to ASML&#8217;s guidance cut, describing it as an overreaction. As reported by <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41351475/after-asml-rocks-ai-hardware-names-gene-munster-explains-why-its-overreaction-ai-tr">Benzinga</a>, he noted that only a small portion of ASML&#8217;s revenue is directly tied to AI demand. Munster&#8217;s perspective suggests that the AI trade remains on track, with TSMC&#8217;s performance further supporting this outlook.
Price Action: As per<a href="https://pro.benzinga.com"> Benzinga Pro,</a> t the time of writing during the pre-market hours on Friday, Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) was up by 0.70% while major semiconductor ETFs were also trading slightly upwards. iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) was up by 1% while Direxion Daily Semiconductor Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) was trading 3.20% higher. SP Funds S&amp;P World ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPWO#NYSE">SPWO</a>) which allows investments into TSM, was up by 1.54%.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/news/24/10/41356479/apple-spark-hope-for-americas-semiconductor-comeback-key-supplier-tsmc-reportedly-begins-producing-c?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Apple Spark Hope For America&#8217;s Semiconductor Comeback: Key Supplier TSMC Reportedly Begins Producing Chip</a></li>
</ul>
Disclaimer: This content was partially produced with the help of&nbsp;<a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a>&nbsp;and was reviewed and published by Benzinga editors.
Image via Shutterstock

SPWO

Gene Munster Predicts 'Bull Market Driven By AI' Amid TSMC's Stellar Performance

A semiconductor rally pushed the S&amp;P 500 to new all-time highs on Thursday, with strong earnings from Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) boosting tech sentiment after a weak report from ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) <a href="https://www.benzinga.com/trading-ideas/technicals/24/10/41383732/stock-of-the-day-taiwan-semiconductor-breaks-out-as-buyers-push-prices-higher">earlier in the week.</a>
The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) jumped 2.3%, leading sector gains. NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) hit fresh record highs, reaching $141 per share during the morning session.
The Nasdaq 100 outperformed major indices, while small caps underperformed as the Russell 2000 faced resistance at a key technical level. The Dow briefly touched a record high of 43,289 points before pulling back slightly.
On the macro front, September retail sales exceeded expectations, and jobless claims fell last week, reinforcing views of strong economic resilience. However, this also slightly hit hopes for Fed rate cuts as economists voiced doubts about the <a href="https://www.benzinga.com/economics/macro-economic-events/24/10/41386234/strong-september-retail-sales-put-feds-next-move-in-doubt-interest-rate-cuts-are-">need for further easing in November.</a>
The U.S. dollar strengthened, with the dollar index (DXY) climbing to levels last seen in early August. The euro fell 0.4% as the European Central Bank cut interest rates amid weak economic data and ongoing disinflation.
Gold prices, tracked by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), rose 0.5%, setting new records despite rising Treasury yields. The 10-year Treasury yield gained 8 basis points to 4.10%, while the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) slid 1.6%, marking its worst session since early August.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) eased 0.4%, taking a breather after four consecutive sessions of gains.
<h1 class="wp-block-heading">Thursday&#8217;s Performance In Major U.S. Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day % change</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>20,304.26</td>
<td>0.6%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,865.46</td>
<td>0.4%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>43,231.61</td>
<td>0.4%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,279.25</td>
<td>-0.3%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:50 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent101724&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) rose 0.4% to $584.45.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;inched 0.4% higher to $432.52.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) soared 0.7% to $494.15.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 0.4% to $226.02.</li>
<li>The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) outperformed, up 1%. The Consumer Staples Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLP#NYSE">XLP</a>) lagged, down 0.5%.</li>
</ul>
<h1 class="wp-block-heading">Thursday&#8217;s Stock Movers</h1>
<ul>
<li>Semiconductor stocks rallying Thursday on the heels of strong TSM earnings were Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), up 4%; Lattice Semiconductor Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LSCC#NASDAQ">LSCC</a>), up 4%; Micron Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>), up 3.6% and Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), up 3.1%.</li>
<li>Blackstone Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BX#NYSE">BX</a>) soared over 7% to fresh record highs after a strong quarterly report. </li>
<li>Other stocks reacting to company earnings included CSX Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSX#NASDAQ">CSX</a>), down 6%; Kinder Morgan Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KMI#NYSE">KMI</a>), up 0.1%; Discover Financial Services (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DFS#NYSE">DFS</a>), up 2%; Equifax Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EFX#NYSE">EFX</a>), down 2.5%; Steel Dynamics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/STLD#NASDAQ">STLD</a>), up 6%; Alcoa Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AA#NYSE">AA</a>), down 3%; Marsh &amp; McLennan Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MMC#NYSE">MMC</a>), up 0.1%; Elevance Health Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ELV#NYSE">ELV</a>), down 12%; Travelers Companies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRV#NYSE">TRV</a>), up 8%; Truist Financial Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TFC#NYSE">TFC</a>), down 1.2%; M&amp;T Bank Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTB#NYSE">MTB</a>), up 5%; Huntington Bancshares Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HBAN#NASDAQ">HBAN</a>), down 1.8% and KeyCorp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KEY#NYSE">KEY</a>), down 1.5%.</li>
<li>Companies slated to report their earnings after the close include Netflix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>), Intuitive Surgical Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ISRG#NASDAQ">ISRG</a>), Crown Holdings Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCK#NYSE">CCK</a>) and Western Alliance Bancorporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WAL#NYSE">WAL</a>). </li>
</ul>
Read Now:
<ul>
<li><a href="https://www.benzinga.com/markets/asia/24/10/41385179/hamas-chief-oct-7-mastermind-yahya-sinwar-possibly-dead-idf-conducts-dna-tests-after-gaza-clash">Hamas Chief, Oct. 7 Mastermind Yahya Sinwar Possibly Dead: IDF Conducts DNA Tests After Gaza Clash</a></li>
</ul>
Photo: Shutterstock

Forex

Retail Sales

Treasuries

streetTRACKS Dow Jones U.S. Large Cap Value Index Fund

HBAN

ISRG

NFLX

STLD

iShares Trust Barclays 20+ Year Treasury Bond Fund

Chipmakers Rally, Nvidia Smashes Records On TSMC Blowout Earnings, Gold Hits All-Time Highs: What's Driving Markets Thursday?

Retail sales in September exceeded expectations, highlighting strong consumer spending and reinforcing positive signals for broader economic growth <a href="https://www.benzinga.com/topic/economics">as the third quarter wrapped up</a>.
Simultaneously, the latest labor market data saw a decline in jobless claims rose during the week ending Oct. 12.
<h3 class="wp-block-heading">September Retail Sales Report: Key Highlights</h3>
<ul>
<li>Retail sales increased by 0.4% in September from the previous month, surpassing both the 0.3% economist consensus, as per TradingEconomics, and the 0.1% growth in August.</li>
<li>On a year-over-year basis, retail sales decelerated, down to 1.7% compared to 2.2% in August.</li>
<li>Excluding motor vehicles and parts, retail sales grew 0.5% month-over-month, exceeding the forecasted 0.1% increase and the upwardly revised 0.2% growth in August.</li>
<li>Stripping out gasoline, motor vehicles, and parts, sales climbed by a robust 0.7% in September, a sharp improvement from the upwardly revised 0.3% gain in August.</li>
<li>Among spending categories, the largest monthly gains were recorded in miscellaneous store retailers, up 4%, and clothing &amp; clothing accessories stores, up 1.5%.</li>
<li>Conversely, gasoline station, electronics and appliance stores experienced the steepest monthly decline, with sales dropping by 1.6% and 3.3%, respectively.</li>
</ul>
<h3 class="wp-block-heading">Weekly Unemployment Claims: Key Highlights</h3>
<ul>
<li>Initial jobless claims came in at 241,000, coming in below a consensus estimate of 260,000 claims, per TradingEconomics, and the prior week&#8217;s upwardly revised 260,000 figure. </li>
<li>The four-week average of claims rose from 231,500 to 236,250.</li>
<li>Continuing claims, reflecting those still receiving benefits after an initial week of aid, rose slightly to 1.867 million, remaining above the 1.87 million expected.</li>
<li>States hardest hit by the increase in jobless claims include Georgia, where claims rose by 3,100 and Pennsylvania, with a surge of 1,300. </li>
<li>Surprisingly, Florida recorded a decline of over 3,000 claims during the week, showing the Hurricane Milton had no major disruption on the region&#8217;s labor market.</li>
</ul>
<h3 class="wp-block-heading">Market Reactions: Stocks Rise Fueled By Chipmakers, Dollar Strengthens On ECB Cut</h3>
Stocks rallied in premarket trading on Thursday, driven by a tech-led surge that boosted futures for the S&amp;P 500 and Nasdaq 100.
Futures on the S&amp;P 500 climbed 0.5%, while Nasdaq 100 contracts advanced 1%, with semiconductor stocks leading the charge. Taiwan Semiconductor Manufacturing Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) soared nearly 9% on strong earnings, propelling the sector higher.
The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) was up 3% on the news. 
Meanwhile, the U.S. dollar strengthened by 0.2% following the European Central Bank's 25-basis-point rate cut, as the ECB signaled that disinflation was &#8220;well on track.&#8221;
Treasury yields rose in response to stronger-than-expected retail sales and lower-than-predicted jobless claims. 
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/10/41377257/wall-street-poised-to-open-higher-as-tsmc-earnings-expected-to-kick-off-rally-in-tech-stocks-strate">Wall Street Poised To Open Higher As TSMC Earnings Expected To Kick Off Rally In Tech Stocks: Strategist Says AI Trade Will Have Legs Even In Case Of Recession In 2025</a></li>
</ul>
Photo via Shutterstock.

September Retail Sales Exceed Estimates, Jobless Claims Fall More Than Expected

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSMC#NYSE">TSMC</a>) is seen singularly lifting the semiconductor space <a href="https://www.benzinga.com/premarket">in premarket trading </a>on Thursday. 
The Catalyst: Hsinchu, Taiwan-based <a href="https://www.benzinga.com/news/earnings/24/10/41373163/nvidia-supplier-tsmc-reports-q3-revenue-earnings-beat-amid-rising-demand-for-ai-chips">TSMC reported third-quarter revenues and earnings per share </a>that exceeded consensus estimates, citing strong smartphone and AI-related demand for its more advanced 3nm and 5nm technologies.
The relatively higher share of more advanced processor node technologies gave margins a big boost, with gross, operating, and net margins all exceeding prior-year periods.
The foundry supplies chips to most global corporations including Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>).
The company&#8217;s earnings and earnings per share both jumped 54% year-over-year, growing faster than the top line, which climbed 39%.
More importantly, TSMC guided fourth-quarter revenue to $26.1 billion to $26.9 billion, well above the $24.86 billion consensus estimate.
TSMC&#8217;s stellar quarterly results should quell the anxiety of investors, who were increasingly becoming skittish about a potential AI bubble burst.
See Also: <a href="https://www.benzinga.com/money/best-semiconductor-stocks">Best Semiconductor Stocks</a>
Stock Moves: Nvidia, whose advanced chips, power most of AI applications and processes, jumped 2.56% to $139.19, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro data.</a>
The Jensen Huang-led company is on the cusp of topping Apple as the world&#8217;s most-valued company, with merely a differential of $195 billion in market cap between the companies. A $8 gain by Nvidia could help accomplish the feat, provided Apple remains flat or retreats.
Among the other movers are:
<ul>
<li>Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) rose 2.93% to $160.70.</li>
<li>Micron Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) added 2.17% to $111.61.</li>
<li>Arm Holdings Plc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) jumped 3.90% to $158.45.</li>
<li>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) moved up 2.23% to $180.76.</li>
<li>Qualcomm Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) rose 1.62% to $174.25.</li>
<li>Marvell Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) gained 2.23% to $83.50.</li>
<li>iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) climbed 2.33% to $232.65.</li>
</ul>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41351475/after-asml-rocks-ai-hardware-names-gene-munster-explains-why-its-overreaction-ai-tr">After ASML Rocks AI Hardware Names, Gene Munster Explains Why It&#8217;s &#8216;Overreaction:&#8217; &#8216;AI Trade Is On Track&#8217;</a></li>
</ul>
Photo courtesy: Shutterstock

Long Ideas

WIIM

TSMC

Why Nvidia, AMD, Micron, Arm And Other Chipmakers Are Ripping Higher Premarket On Thursday

Marvell Technology, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) showcased its cutting-edge 3nm PCIe Gen 7 connectivity at the OCP Global Summit, held from October 15 to 17 at the San Jose Convention Center.
The new PCIe Gen 7 doubles data transfer speeds compared to previous generations, enabling more efficient scaling of compute fabrics inside AI-driven server platforms, CXL systems, and general-purpose servers.
By building on its widely adopted PAM4 technology and utilizing its accelerated infrastructure silicon platform, Marvell has created a comprehensive interconnect portfolio that addresses high-bandwidth optical and copper connections in AI data centers.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/24/10/41127863/despite-nvidia-selloff-bidens-law-and-taiwan-semis-advantage-offer-growth-potential" rel="noreferrer noopener">Despite Nvidia Selloff, Biden's Law and Taiwan Semi's Advantage Offer Growth Potential</a>
The introduction of PCIe Gen 7—building on the PCIe Gen 6 timer announcement—expands Marvell's optical and copper interconnect portfolio beyond Ethernet into PCIe, CXL, and proprietary compute fabric links, facilitating high-performance AI clusters and next-generation server systems.
With 3nm fabrication technology, Marvell's PCIe Gen 7 SerDes offers lower power consumption while maintaining performance, making it a key player in powering next-generation AI superclusters and hyperscale data centers.
Also this week, Marvell <a target="_blank" href="https://benzinga.com/markets/equities/24/10/41315171/why-is-marvell-technology-stock-gaining-today" rel="noreferrer noopener">disclosed that it is developing a</a> custom 5nm network controller FBNIC in partnership with Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), which will boost data center performance.
However, KeyBanc&nbsp;analyst John Vinh <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41235547/nvidia-amd-lead-the-pack-broadcom-stable-intel-falters-analysts-latest-take" rel="noreferrer noopener">recently flagged Marvell's</a> vulnerability to market share loss from the next-generation Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) AWS Trainium 3 loss to Alchip, Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google's second-generation Axion ARM CPU, and Nvidia Corp's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) development of its 1.6T optical DSP based on his&nbsp;findings from Asia.
Marvell stock surged 50% in the last 12 months. Investors can gain exposure to the stock through iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) and VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>).
<h2 class="wp-block-heading">Marvell Stock Prediction For 2024</h2>
When buying a stock for a longer time horizon, it is important for investors to assess where they think the stock is headed in the future.
When mapping a stock's future trajectory, investors should consider factors including the future earnings expectations and expected performance against a benchmark.
Marvell Tech's revenue has grown at an average rate of 19.71% annually over the past 5 years. The average 1-year price target from analysts is $95.57, representing an expected 19.75% upside in 2025.
While past performance is not a guarantee of future results, investors should also look at a stock's historical performance when compared to both a benchmark index and the company's peers. Shares of Marvell Tech have seen an annualized return of 6.23%, underperforming the S&amp;P500 index by 3.2%. This compares to 26.74% growth in the overall Information Technology sector. Marvell Tech has a beta of 1.16.
Price Action: MRVL stock is up 2.45% at $75.98 at the last check Tuesday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/government/24/09/41093269/whats-going-on-with-chip-stocks-like-nvidia-taiwan-semi-and-amd-on-monday" target="_blank" rel="noreferrer noopener">Semiconductor Giants, Led by Nvidia, Fall as China Backs Local AI Chipmakers</a></li>
</ul>
Photo via Shutterstock

Marvell Showcases Next-Gen 3nm Technology, Doubling Data Speeds for AI Systems

A wave of market-relevant news fueled an active trading session on Wall Street Tuesday, with large-cap indices falling due to sharp declines in tech and energy stocks, while small-caps outperformed, led by gains in regional banks.
At the forefront of the headlines is the massive plunge in ASML Holding NV (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) shares. The Dutch chipmaker&#8217;s stock nosedived over 16% after a technical error prematurely revealed its third-quarter earnings, originally scheduled for Wednesday, <a href="https://www.benzinga.com/markets/equities/24/10/41339229/asml-earnings-leak-sparks-broad-semiconductor-sell-off-sector-down-sharply-as-dutch-chipmaker-lo">on the company&#8217;s website. </a>
The report disclosed weaker-than-expected guidance for 2025, leading to the worst single-day drop in ASML stock since it went public in 2002.
ASML&#8217;s collapse sent shockwaves across the semiconductor sector, with the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) falling more than 4%, marking its worst performance since early September. Key semiconductor players were hit hard, with NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) down 5% and Arm Holdings PLC-ADR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) tumbling 7%.
Another underperforming sector was energy. Oil prices plunged 5%, setting up their <a href="https://www.benzinga.com/markets/asia/24/10/41336413/oil-prices-take-largest-plunge-in-over-a-year-as-israel-vows-to-spare-iranian-facilities-energy-stoc">worst trading day in over a year. </a>
The sell-off followed a Monday&#8217;s report from The Washington Post, which revealed Israeli Prime Minister Benjamin Netanyahu assured the Biden administration Israel would refrain from targeting Iranian oil and nuclear facilities in any retaliatory military actions.
Meanwhile, the financial sector surged, extending its all-time highs as Bank of America Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), Goldman Sachs Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>), and Charles Schwab Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHW#NYSE">SCHW</a>) all posted <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41331839/financial-sector-hits-record-highs-as-goldman-sachs-bank-of-america-citi-beat-q3-ea">stronger-than-expected quarterly earnings.</a>
Gains also spread to more economically sensitive regional banks, with the SPDR S&amp;P Regional Banking ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KRE#NYSE">KRE</a>) jumping over 3%, lifting the broader Russell 2000 index by 1%.
In other markets, both the U.S. dollar and Treasury yields remained steady, as there were no major updates on interest-rate expectations. Gold edged up by 0.6%, while Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) continued its recent momentum, climbing 1.3% after a 5.1% surge on Monday.
<h1 class="wp-block-heading">Tuesday&#8217;s Performance In Major U.S. Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>Chg (1-day) %</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,272.05</td>
<td>1.0%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>42,942.79</td>
<td>-0.3%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,842.20</td>
<td>-0.3%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>20,221.22</td>
<td>-1.1%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:45 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent101524&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) fell 0.4% to $581.82.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;inched 0.3% down to $429.46.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) fell 1.1% to $491.72.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rose 1% to $222.52.</li>
<li>The Financials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) outperformed, up 1%. The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) lagged, down 2.3%.</li>
</ul>
<h1 class="wp-block-heading">Tuesday&#8217;s Stock Movers</h1>
<ul>
<li>Airlines and cruise lines rallied in reaction to lower oil prices. American Airlines Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAL#NASDAQ">AAL</a>) rose 2.2%, United Airlines Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/UAL#NASDAQ">UAL</a>) gained 2.2%. Carnival Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCL#NYSE">CCL</a>) and Norwegian Cruise Line Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NCLH#NYSE">NCLH</a>) rallied 7.7% and 5.5%, respectively. </li>
<li>Charles Schwab rose 7.5% after reporting stronger-than-expected quarterly results. </li>
<li>Other stocks reacting to earnings were UnitedHealth Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>), down 7.4%; Johnson &amp; Johnson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNJ#NYSE">JNJ</a>), up 1.8%; Bank of America Corp., up 1.9%; Goldman Sachs Group Inc., down 0.3%; Citigroup Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/C#NYSE">C</a>), down 4%; PNC Financial Services Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PNC#NYSE">PNC</a>), up 4%; State Street Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>), up 0.6% and Walgreens Boots Alliance Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBA#NASDAQ">WBA</a>), up 13%</li>
<li>Companies slated to report earnings after the close include Interactive Brokers Group Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBKR#NASDAQ">IBKR</a>), United Arlines Holdings Inc., Omnicon Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OMC#NYSE">OMC</a>) and J.B. Hunt Transport Services Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JBHT#NASDAQ">JBHT</a>). </li>
</ul>
Read Now:
<ul>
<li><a href="https://www.benzinga.com/markets/cryptocurrency/24/10/41336897/3-reasons-why-a-bitcoin-all-time-high-before-the-election-is-back-in-play">3 Reasons Why A Bitcoin All-Time High Before The Election Is Back In Play</a></li>
</ul>
Photo: Shutterstock

Guidance

IBKR

JBHT

NCLH

SCHW

Chipmaker Stocks Sink On ASML Earnings Leak, Oil Eyes Worst 1-Day Drop This Year, Small Caps Rally: What's Driving Markets Tuesday?

Shares of ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) plunged by over 16% on Tuesday morning trading in New York following an accidental early release of the company&#8217;s third-quarter earnings report, sending shockwaves <a href="https://www.benzinga.com/topic/semiconductors">through the semiconductor sector. </a>
The Dutch semiconductor equipment giant saw its stock drop sharply after lowering its 2025 sales outlook, casting a shadow over heightened future growth prospects. 
<h3 class="wp-block-heading">ASML Lowers 2025 Sales Forecast</h3>
ASML's third-quarter report, published a day ahead of schedule, revealed a significant revision to its 2025 net sales guidance, now projected between 30 billion euros and 35 billion euros ($32.7 billion to $38.2 billion) — a reduction from the previously stated range of 30 billion euros to 40 billion euros. 
This downgrade in outlook is driven by slower-than-expected recovery in key market segments, despite strong growth from artificial intelligence investments.
&#8220;While there continue to be strong developments and upside potential in AI, other market segments are taking longer to recover. It now appears the recovery is more gradual than previously expected. This is expected to continue in 2025, which is leading to customer cautiousness,&#8221; said ASML president and CEO Christophe Fouquet.
&#8220;We expect our 2025 total net sales to grow to a range between 30-35 billion euros, which is the lower half of the range that we provided at our Investor Day,&#8221; the CEO said. 
<h3 class="wp-block-heading">ASML&#8217;s Q3 Results: Solid Performance, But Outlook Sours</h3>
For Q3 2024, ASML reported total net sales of 7.5 billion euros, surpassing analyst expectations of 7.12 billion euros. 
Net income reached 2.1 billion euros, with a gross margin of 50.8%. The company&#8217;s quarterly net bookings came in at 2.6 billion euros. Importantly, 1.4 billion euros of the bookings were for EUV (extreme ultraviolet) systems, indicating ongoing demand for advanced chip manufacturing equipment.
For the fourth quarter of 2024, ASML expects total net sales to land between 8.8 billion euros and 9.2 billion euros with a gross margin between 49% and 50%. The company reaffirmed its full-year 2024 guidance, projecting total sales of around 28 billion euros. 
<h3 class="wp-block-heading">Sector-Wide Impact: Chip Stocks Slide</h3>
The negative reaction to ASML's earnings leak rippled across the broader semiconductor sector, dragging down other major players. 
By midday Tuesday, the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) was down 3.7%, marking its worst trading session in over a month. The VanEck Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NYSE">SMH</a>) dropped by over 4%, as investor sentiment soured on chip-related stocks.
Here's a look at the worst-performing semiconductor stocks by 11:40 a.m. ET:
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Company</th>
<th>1-day % chg</th>
</tr>
</thead>
<tbody>
<tr>
<td>ASML Holding N.V. </td>
<td>-16.55%</td>
</tr>
<tr>
<td>KLA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KLAC#NASDAQ">KLAC</a>)</td>
<td>-9.88%</td>
</tr>
<tr>
<td>Applied Materials, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMAT#NASDAQ">AMAT</a>)</td>
<td>-8.68%</td>
</tr>
<tr>
<td>Lam Research Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>)</td>
<td>-7.54%</td>
</tr>
<tr>
<td>Onto Innovation Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ONTO#NASDAQ">ONTO</a>)</td>
<td>-7.15%</td>
</tr>
<tr>
<td>Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>)</td>
<td>-6.44%</td>
</tr>
<tr>
<td>Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)</td>
<td>-5.52%</td>
</tr>
</tbody>
</table>
</figure>
Read Next:
• <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/10/41331839/financial-sector-hits-record-highs-as-goldman-sachs-bank-of-america-citi-beat-q3-ea">Financial Sector Hits Record Highs As Goldman Sachs, Bank of America, Citi Beat Q3 Earnings Expectations</a>
Photo via Shutterstock.

KLAC

LRCX

ONTO

ASML Earnings Leak Sparks Broad Semiconductor Sell-Off, Sector Down Sharply As Dutch Chipmaker Lowers 2025 Outlook

The iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) has been on a bullish run, boasting a 25.16% gain year-to-date and a remarkable 45.12% rise over <a href="https://www.benzinga.com/quote/SOXX/news">the past year</a>.
Tracking U.S.-listed semiconductor sector equities, the iShares Semiconductor ETF rode the surge in demand for AI, cloud computing and automotive technologies.
But as the industry faces ongoing geopolitical tension and supply chain disruptions, a looming technical indicator casts a shadow over its rally.
<h1 class="wp-block-heading">SOXX Approaching A Death Cross: Should Investors Worry?</h1>
Despite its strong performance, the iShares Semiconductor ETF is flirting with a potential Death Cross — a bearish signal that occurs when a short-term moving average crosses below a long-term one.
<figure class="wp-block-image size-full"><a href="https://www.benzinga.com/pro/?utm_source=BZprocontent100724&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="630" height="459" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07134037/Screenshot-2024-10-07-at-6.37.51-PM.png" alt="" class="wp-image-584014" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07134037/Screenshot-2024-10-07-at-6.37.51-PM.png 630w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/10/07134037/Screenshot-2024-10-07-at-6.37.51-PM-300x219.png 300w" sizes="(max-width: 630px) 100vw, 630px" /></a></figure>
<a href="https://www.benzinga.com/pro/?utm_source=BZprocontent100724&amp;t=be2bearmibe3na1" target="_blank" rel="noreferrer noopener">Chart created using Benzinga Pro</a>
While the iShares Semiconductor ETF&#8217;s share price currently sits at $231.08, well above its five-, 20-, and 50-day exponential moving averages, it's teetering dangerously close to its 200-day SMA at $221.20.
This suggests that while the ETF remains technically bullish, buying pressure could taper off if global market conditions worsen. 
The current Moving Average Convergence Divergence (MACD) reading of 1.87 supports the bullish trend, yet the Relative Strength Index (RSI) of 55.43, and rising, indicates potentially overbought conditions coming up, which would hint at a possible correction.
Read Also: <a href="https://www.benzinga.com/government/24/10/41127863/despite-nvidia-selloff-bidens-law-and-taiwan-semis-advantage-offer-growth-potential">Despite Nvidia Selloff, Biden&#8217;s Law and Taiwan Semi&#8217;s Advantage Offer Growth Potential</a>
<h1 class="wp-block-heading">Semiconductor Surge: Powered By AI, Cloud, Automotive Demand</h1>
Sales in the semiconductor industry have seen a sharp recovery, jumping 20.6% year-over-year in August. Export controls and geopolitical tensions — particularly around U.S.-China relations — still pose challenges.
The CHIPs Act in the U.S. and parallel efforts in Europe and China are intensifying the global race for semiconductor dominance.
As the iShares Semiconductor ETF edges closer to a Death Cross, investors may need to brace for potential volatility despite the ETF's robust recent gains.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/economics/macro-economic-events/24/10/41185065/s-p-500-nears-record-highs-on-hot-jobs-data-dollar-treasury-yields-surge-as-aggre">S&amp;P 500 Nears Record Highs On Hot Jobs Data: Dollar, Treasury Yields Surge As Aggressive Interest Rate Cut Hopes Fade</a></li>
</ul>
Photo: Shutterstock

iShares Semiconductor ETF (SOXX) Approaches Death Cross Despite Recent Gains: Should Investors Worry?

Fundamentals Vs. Politics: What Could Drive Markets Going Forward?

Back To Business

QuikLogic: Waving The White Flag Due To A Trust Deficit (Rating Downgrade)

With global digitization accelerating, the semiconductor industry is undergoing transformative changes, creating robust opportunities for investors. Thus, to gain exposure in this sector, it might be wise for you to watch semiconductor ETFs like First Trust Nasdaq Semiconductor (FTXL), iShares Semiconductor (SOXX), and VanEck Semiconductor (SMH). Keep reading… The semiconductor industry lies at the heart of technological innovation, powering devices, and infrastructure for AI, 5G, IoT, and electric vehicles. Semiconductor ETFs offer diversified exposure in this booming sector while mitigating individual stock risks.
Below, I have highlighted three semiconductor ETFs: First Trust Nasdaq Semiconductor ETF (<a href="https://stocknews.com/stock/FTXL/">FTXL</a>), iShares Semiconductor ETF (<a href="https://stocknews.com/stock/SOXX/">SOXX</a>), and VanEck Semiconductor ETF (<a href="https://stocknews.com/stock/SMH/">SMH</a>).
<a href="https://www.investopedia.com/terms/e/etf.asp">Exchange-traded funds</a> (ETFs) offer a strategic way to invest, providing a diversified portfolio that reduces risk while capturing broad market opportunities. ETFs allow investors to benefit from the collective growth of multiple companies in the tech sector.
With rising demand, new industry investments are set to increase chip production; the United States is forecasted to secure the largest share of new private investments in semiconductor manufacturing.
Thanks to the CHIPS and Science Act, as of August 2024, companies in the semiconductor ecosystem have <a href="https://www.semiconductors.org/wp-content/uploads/2024/09/SIA_State-of-Industry-Report_2024_final_091124.pdf">announced more than 90 new manufacturing projects</a> amounting to $450 billion across 28 states. Moreover, these new projects are set to create 58,000 new high-quality jobs in the semiconductor industry alone.
However, the Semiconductor Industry Association (SIA) reported <a href="https://www.semiconductors.org/policies/tax/market-data/?type=post">global sales of $166 billion</a> during the third quarter of 2024, up 23.2% year-over-year. Statista reports support this positive sentiment, predicting the global semiconductor market to <a href="https://www.statista.com/outlook/tmo/semiconductors/worldwide">reach $980.80 billion by 2029</a>, growing at a CAGR of 10.1%.
Semiconductor companies have posted impressive financials, reflecting their integral role in modern technology, providing investors exposure to this lucrative trend while spreading risk across multiple players.
With that in mind, let's look at the fundamentals of the above-mentioned three <a href="https://stocknews.com/category/technology-equities-etfs/">Technology Equities ETFs</a>, beginning with number 3.
ETF #3: First Trust Nasdaq Semiconductor ETF (<a href="https://stocknews.com/stock/FTXL/">FTXL</a>)
FTXL seeks to track the performance of the Nasdaq US Smart Semiconductor Index. Managed by First Trust Advisors LP, the fund invests in companies within the information technology, semiconductors, and semiconductor equipment sectors. It includes a mix of value, growth, and volatile stocks from companies of various market capitalizations.
As of November 18, 2024, the fund had $1.33 billion in <a href="https://www.investopedia.com/terms/a/aum.asp">assets under management (AUM)</a> and an <a href="https://www.ftportfolios.com/Retail/Etf/EtfSummary.aspx?Ticker=FTXL">NAV of $87.19</a>. FTXL has an expense ratio of 0.60%, compared to the category average of 0.58%.
The fund's top holdings include NVIDIA Corporation (<a href="https://stocknews.com/stock/NVDA/">NVDA</a>) with a 10.22% weighting, Intel Corporation (<a href="https://stocknews.com/stock/INTC/">INTC</a>) at 9.50%, Broadcom Inc. (<a href="https://stocknews.com/stock/AVGO/">AVGO</a>), and QUALCOMM Incorporated (<a href="https://stocknews.com/stock/QCOM/">QCOM</a>) at 8.70% and 7.87%, respectively. It currently has a total of 31 holdings.
The fund pays an annual dividend of $0.47, translating to a 0.54% yield at the prevailing price level. The fund's four-year average yield is 0.53%. Its dividend payouts have grown at a 38.9% CAGR over the past three years.
Over the past five days, the fund's net outflow came in at $4.46 million. It has gained 20.9% over the past year to close its last trading session at $87.24.
FTXL's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect its fundamentals. Of the 119 ETFs in the A-rated <a href="https://stocknews.com/category/technology-equities-etfs/">Technology Equities ETFs</a> group, FTXL is ranked #80. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
To access all of FTXL's POWR Ratings, <a href="https://stocknews.com/stock/FTXL/">click here</a>.
ETF #2: iShares Semiconductor ETF (<a href="https://stocknews.com/stock/SOXX/">SOXX</a>)
SOXX invests in stocks of companies operating across information technology, semiconductors, and semiconductor equipment sectors and tracks the NYSE Semiconductor Index. BlackRock Fund Advisors manages this fund.
With $1.34 billion in AUM, its <a href="https://www.ishares.com/us/products/239705/ishares-phlx-semiconductor-etf#:~:text=100.00-,Holdings,-All">top holdings</a> are NVDA with a 10.39% weighting in the fund, AVGO at 8.85% weight, followed by Advanced Micro Devices, Inc. (<a href="https://stocknews.com/stock/AMD/">AMD</a>), and Texas Instruments Incorporated (<a href="https://stocknews.com/stock/TXN/">TXN</a>) with 7.93% and 6.40% weightings, respectively. The ETF has a total of 30 holdings.
The ETF's expense ratio is 0.35%, lower than the category average of 0.58%. SOXX fund inflows were $1.66 billion over the past year and $1.36 billion over the past six months.
SOXX pays an annual dividend of $1.46, which translates to a 0.69% yield at the current price level. The fund's dividend payouts have grown at an 11.4% CAGR over the past three years. Its four-year average yield is 0.83%.
Over the past year, SOXX has gained 25.4% to close the last trading session at $213.94. The fund's NAV was $214 as of November 18, 2024.
SOXX's stance is apparent in its POWR Ratings. SOXX is ranked #79 in the same A-rated group. <a href="https://stocknews.com/stock/SOXX/">Click here</a> to access all the SOXX ratings.
ETF #1: VanEck Semiconductor ETF (<a href="https://stocknews.com/stock/SMH/">SMH</a>)
Van Eck Associates Corporation manages SMH. The fund invests in growth and value stocks of companies that are operating across the information technology, semiconductors, and semiconductor equipment sectors. It seeks to track the performance of the MVIS US Listed Semiconductor 25 Index.
As of November 18, SMH had $23.48 billion in assets under management and an NAV of $241.57. Its expense ratio of 0.35% compares to the category average of 0.58%.
The fund's <a href="https://www.vaneck.com/us/en/investments/semiconductor-etf-smh/fees/#:~:text=reflect%20current%20fees.-,Holdings,-Daily%20Holdings%20(%25)">top holdings</a> include NVDA with a 23.66% weight, Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR (<a href="https://stocknews.com/stock/TSM/">TSM</a>) with a 13.20% weight, AVGO with a 7.71% weight, and AMD with a 4.38% weight. It has a total of 26 holdings.
SMH's trailing-12-month dividend of $1.04 yields 0.43% on the current price level, while its four-year average dividend yield is 0.72%. Its dividend payouts have grown at an 11.6% CAGR over the past three years.
SMH has gained 49.8% over the past year and 19.2% over the past nine months to close the last trading session at $241.54. Its fund inflows came in at $6.60 billion over the past year and $3.53 billion over the past six months.
SMH's promising outlook is reflected in its POWR Ratings. The ETF has an overall B rating, equating to a Buy in our proprietary rating system.
It has an A grade for Trade and a B for Buy &amp; Hold. It is ranked #66 out of 119 ETFs in the same Technology Equities ETFs group. To see the POWR Ratings of SMH for Peer, <a href="https://stocknews.com/stock/SMH/">click here</a>.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>

<hr />
SMH shares were trading at $242.59 per share on Tuesday afternoon, up $1.05 (+0.43%). Year-to-date, SMH has gained 38.73%, versus a 25.16% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: ShreyaRathi</h2> <img src='https:/wp-content/uploads/2024/10/0.jpeg' style="float:left; padding:5px;width:125px;"><a href="https://stocknews.com/authors/?author=shreya-rathi">More...</a>The post <a href=https://stocknews.com/news/smh-soxx-ftxl-3-essential-semiconductor-etfs-for-tech-savvy-investors/>3 Essential Semiconductor ETFs for Tech-Savvy Investors</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Comments

iShares Semiconductor ETF

Actualités

Dernières nouvelles pour iShares Semiconductor ETF (NASDAQ:SOXX)

Notizie

PARTENAIRE / CONTRIBUTEUR

BENZINGA MONDIAL