Intel (NASDAQ:INTC) led chip stocks higher on Friday after the company’s third-quarter results and guidance surpassed Wall Street’s expectations.
Jefferies analyst Blayne Curtis said “after adjusting for the moving parts, results and guidance came in a bit better given accelerating demand in servers and early stages of a PC refresh cycle.” Meanwhile, Seeking Alpha analyst Louis Gerard said it was a great quarter that bodes well for Intel’s future.
However, the U.S. tech giant does have challenges. Morgan Stanley analyst Joseph Moore said the upside seen in the third-quarter was a result of conservatism, led by Intel CEO Lip Bu-Tan. Moore kept his Equal-Weight rating on Intel and said he is not ready to change his mind, even as the stock has moved higher in recent weeks. Bank of America analyst Vivek Arya noted that he does not expect a “material improvement” in the company’s foundry business, and the lack of an AI accelerator is a major negative.
Shares of Intel, Taiwan Semiconductor Manufacturing (TSM) and Marvell Technology (MRVL) each rose about 2% on Friday. Lattice Semiconductor (LSCC) and GlobalFoundries (GFS) each climbed about 1%. NXP Semiconductors (NXPI) was largely flat but in the green. Meanwhile, Analog Devices (ADI), Texas Instruments (TXN) and STMicroelectronics (STM) seemed to buck the trend and dipped about 1% each.
AI chipmakers, Nvidia’s (NVDA) stock rose about 1%, while Advanced Micro Devices (AMD) surged around 6%. Earlier today, IBM (IBM) said it can run a vital quantum computing algorithm on commonly available chips from AMD. Shares of IBM jumped about 4%.
Broadcom (AVGO) rose nearly 3%, while Qualcomm (QCOM) was largely flat but in the red.
Chip equipment makers also saw gains. Lam Research (LRCX) gained about 3%, KLA (KLAC) jumped around 2% and ASML (ASML) rose nearly 1%. Applied Materials (AMAT) was largely flat but in the green.
Separately, U.S. President Donald Trump said on Thursday night that he was immediately ending all trade negotiations with Canada because the Ontario provincial government aired an ad featuring former President Ronald Reagan speaking negatively about tariffs.
“The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs,” Trump said in a post on Truth Social.