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Semiconductors

The Nasdaq Crashed. Nvidia Didn’t.Relative strength can often be a useful concept. There are indicators to measure relative strength , but one simple method is simply looking for stocks that hold their ground when the market crashes. Semiconductor company Nvidia seems to fit this bill. NVDA is a member of the Nasdaq-100 , Philadelphia Semiconductor Index and SPDR Technology ETF . All three fell under their 50-day simple moving averages (SMAs) during the recent volatility. NVDA, however, never even came close to breaching that line. NVDA has also formed a triangle and seen its Bollinger Band Width tighten back to normal from overextended levels. This semiconductor company faces some near-term jitters over its proposed acquisition of Arm Holdings. But with such a strong trend in place and the successful integration of Mellanox in the rearview mirror, the bears might not have much ammunition. With NVDA breaking the downward trend line that began on September 3 and prices back above the 8-day exponential moving average (EMA), traders may lean on the bull side and find themselves accelerating the shares higher.
NASDAQ:NVDALong
by TradeStation
Lam Research Sitting Near the 50-day SMAChips have been one of the stronger parts of the market lately as the economy rebounds from coronavirus and applications like cloud computing and videogaming flourish. Lam Research is a provider of chip-making equipment. It rallied on a strong earnings report in late July, but then stalled and has now pulled back. LRCX has stabilized in the last week or so. It had a large outside day on August 24 followed by an inside candle yesterday. Today’s another tight range, a potential sign of the short-term bearishness exhausting itself. The consolidation has happened immediately above its 50-day simple moving average (SMA). It tested under that key line shortly before noon today, triggering an alert on the TradeStation platform. LRCX’s current levels are also interesting because its pre-Covid peak on February 13 was $344.32. The stock broke above that level in July. It also successfully retested below it on July 24 (dragged down by Intel’s disappointing quarter). This time around, LRCX made a higher low, while staying $3 above the early 2020 high. Chips aren’t really in focus right now – especially given the big moves in Salesforce.com and Facebook, plus the looming splits in Apple and Tesla. So, LRCX may still need a little time. However, the longer-term trend still appears intact.
NASDAQ:LRCXLong
by TradeStation
Extreamly Undervalued - $10 Billion Stock Repurchase ProgramIntel Corporation provides computing, networking, data storage, and communication solutions worldwide. It operates through Data Center Group, Internet of Things Group, Non-Volatile Memory Solutions Group, Programmable Solutions Group, Client Computing Group, and All Other segments. The company offers platform products, such as CPU and chipset, system-on-chip, and multichip package products for cloud, enterprise, and communication infrastructure markets. It also provides NAND flash memory and DC persistent products for enterprise and cloud-based data centers, and users of business and consumer desktops and laptops; programmable semiconductors, such as field-programmable gate arrays, application-specific integrated circuits, and related products for communications, data center, industrial, and military markets; and various processors for notebooks, mobiles, and desktop PCs. In addition, it offers boards and systems, such as server boards and small form factor systems; and connectivity products for cellular modems, Ethernet controllers, silicon photonics, Wi-Fi, and Bluetooth. Further, the company develops computer vision and machine learning- based sensing, data analysis, localization, mapping, and driving policy technologies for advanced driver assistance systems and autonomous driving. It serves original equipment manufacturers, original design manufacturers, industrial and communication equipment manufacturers, and cloud service providers. The company was founded in 1968 and is headquartered in Santa Clara, California. Great opportunity to buy the "KING" of the industry! Intel announced a $10 Billion stock repurchase program. The stock is undervalued at current levels especially compared to overpriced AMD. Long! DISCLAIMER The Content herein is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
NASDAQ:INTCLong
by HotCharts
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NASDAQ:AMDLong
by mortdiggiddy
2
Taiwan Semiconductor guidance crushed Street estimatesI saw a couple articles this morning suggesting that maybe TSM sold off today because forward guidance disappointed Street expectations. That's nonsense. Revenue guidance came in about 7% above expectations, and earnings guidance came in about 15% above Street expectations. This company's guidance crushed it . The stock sold off for one reason only: it is overbought. TSM does look a bit pricey, even with the strong guidance for Q3. Even after factoring in the strong forward guidance, I am calculating forward P/E at about 21 and forward P/S at a little below 8. That's about 20% more expensive in forward P/E terms and 34% more expensive in forward P/S terms than the stock's average valuation over the last three years. In this challenging macroeconomic environment, that seems like an unreasonable valuation. It's a reflection of how inflated tech valuations have gotten due to Fed liquidity and investors piling into tech as a safe haven. Having said that, TSM has an extraordinarily strong growth narrative right now, as the company is set to take over chip production for Apple. Formerly Apple's chips were manufactured by Intel. TSM also makes chips for Qualcomm, among other large companies. Thus, I think TSM will continue to outperform the Nasdaq and is a buy on any significant pullback. Ideally, I'd like to see this stock pull back to the volume node near $53.50 before buying, but in truth I don't see that happening any time soon.
NYSE:TSMLong
by ChristopherCarrollSmith
XLNX may be ready to break out after guidance raise$XLNX made a perfect trendline test yesterday on news that it raised its Q1 revenue guidance by 5%. Although revenue is still down 14% year-over-year, the XLNX guidance raise suggests to analysts at Moody's that "broad based demand could be in a bottoming phase." XLNX has a relatively secure market position, with only one real competitor (Altera) and high barriers to entry for new competition. Moody's expects the company to continue to generate strong cash flow despite the challenging macroeconomic environment. Look for another trend line test and possible breakout in the near future. Trading plan: I will buy at $91 support, and then ride XLNX to the trend line. I will sell at the trend line, and then buy back in if it makes a decisive trend line cross.
XLong
by ChristopherCarrollSmith
Early earnings blowouts point higher for semiconductorsWe've now had a blowout earnings report from $MU, in which EPS beat by 11%, sales by 3%, and guidance by 24%(!). We also got guidance from XLNX yesterday that suggested its revenue will be about 5% higher than previously expected, above the high end of its previous range. This suggests that analysts are underestimating the sector's performance as we head into Q2 earnings season in mid-July. It also suggests that semiconductors will have far more forward visibility than most sectors, with 100% of companies so far providing guidance. Semiconductors usually are one of the strongest sectors on earnings, beating estimates at a much higher-than-average rate. Amidst the pandemic, there's been strong demand for mobile, home computing, and datacenter usage due to people working from home, so the sector has performed well. Granted, these stocks mostly aren't cheap; but investors are paying premiums for a reason. I expect the sector will outperform through the end of July. Those who've been following my posts know that my positioning is mostly defensive: I'm heavy on utilities and consumer staples. Semiconductors have the virtue of being a bit defensive, in that they're relatively insulated against pandemic impact, while also having extraordinarily high growth potential. Historically, SOXX has considerably outperformed the S&P 500.
NASDAQ:SOXXLong
by ChristopherCarrollSmith
4