Chips mostly rise as earnings fly in; Qualcomm gives up gains
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Monty Rakusen
Semiconductor stocks were mostly higher on Thursday amid a slew of earnings in the sector, led in part by industry stalwart Qualcomm (NASDAQ:QCOM).
Qualcomm shares erased strong premarket gains and were down 0.5% in late morning trading, despite significant praise from Wall Street after the San Diego-based chipmaker offered up better-than-expected quarterly results and guidance and a new $15B buyback.
Analysts from UBS and J.P. Morgan upped their price targets, while Barclays analyst Tom O’Malley (who kept his Overweight rating and $200 price target) pointed out that there is now a “bifurcation in Android between the high and low end” and Qualcomm is benefiting both in units and average selling price.
Conversely, Arm Holdings (NASDAQ:ARM) erased premarket losses and rose more than 5% after it reported better-than-expected results, but offered tepid guidance, which kept Wall Street’s positive reactions somewhat in check.
SiTime (NASDAQ:SITM) shares jumped more than 8% on Thursday after the chipmaker offered up strong third-quarter results. Analysts from Needham and Raymond James upped their price targets on SiTime to $225 and $215, respectively, following the results.
Allegro MicroSystems (NASDAQ:ALGM) shares rose 0.5% after it received a new Equal-Weight rating at Morgan Stanley.
MKS Instruments (MKSI) jumped more than 11% after it offered up stronger-than-expected guidance for the coming quarter, on the back of solid third-quarter results.
Veeco Instruments (VECO) shares fell 2.5% after the chip equipment maker posted third-quarter results that topped estimates, but offered up guidance that came in short of analysts’ expectations.
Nova (NVMI) shares rose 5.5% after the chip equipment maker offered up stronger-than-expected third-quarter results and guidance for the coming quarter.
Wolfspeed (WOLF) shed more than 23% of its value after its guidance for the fiscal second-quarter came in well below estimates, due in part to restructuring and factory start-up costs.
Several other S&P 500 semiconductor stocks were higher on Thursday, including Nvidia (NVDA), AMD (AMD), Broadcom (AVGO), Texas Instruments (TXN) and Micron Technology (MU).