I was wondering why the semis were getting killed his morning. Here are a few comments about it from SA:
Semiconductor stocks were mostly lower on Tuesday ahead of the latest quarterly results from industry stalwart Broadcom (NASDAQ: AVGO), set to be released later this week.
Broadcom shares fell 4.5% even as Citi upped its price target and reiterated its Buy rating on the Hock Tan-led company. "We expect the company to report results above consensus, driven by a recovery in the non-AI semiconductor business (35% of F24E sales) with a better-than-feared gross margin outlook due to higher software mix," analyst Christopher Danely wrote to clients. "However, we believe F1Q25 guidance will be tempered as there appears to be a slowdown in orders from leading AI customer Google. We do expect business to ramp from Meta throughout C25 and pick up the slack."
Danely raised his price target to $205 from $175 ahead of the results.
A consensus of analysts expects Broadcom to earn $1.39 per share on $14.06B in revenue for the coming quarter.
Micron Technology (NASDAQ: MU) shares reversed premarket gains and fell nearly 4% even as the U.S. Department of Commerce finalized its $6.15B CHIPs Act grant to the memory maker.
The award will support the construction of two fabs in Clay, New York, and one fab in Boise, Idaho as part of Micron’s total $125B investment across both states over the next two decades.
Taiwan Semiconductor shares fell 3% even as the global foundry reported November revenue rose 34% year-over-year, led by strength in the data center. Taiwan Semiconductor produces chips for many of the world's leading companies, including Nvidia ( NVDA), Apple ( AAPL) and AMD (NASDAQ: AMD).
AMD shares fell 1.8% as investors wondered how the company's AI accelerators are performing. On Monday, an AMD spokesperson told Seeking Alpha that last week's report that contained comments made by an Amazon Web Services ( AMZN) executives that it has "not yet" seen heavy demand for the former's artificial intelligence accelerators was "not accurate."
AMD competitors Nvidia and Intel ( INTC) fell 1.5% and 2.6%, respectively.
A number of other S&P 500 semiconductor companies fell on Tuesday, including Texas Instruments ( TXN), Analog Devices ( ADI), Qualcomm ( QCOM) and NXP Semiconductors ( NXPI), all of which fell 2% or more.
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