HomeMarket NewsAMD Leads Semiconductor Sector Gains While Micron Faces Concerns

AMD Leads Semiconductor Sector Gains While Micron Faces Concerns

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Advanced Micro Devices (AMD) emerged as the frontrunner among semiconductor stocks on Thursday, leading a market-wide rebound despite worries about cautious guidance from industry giant Micron Technologies (MU).

AMD saw a 5.5% gain on Thursday, outperforming competitors Nvidia (NVDA) and Intel (INTC), which added 2% and 2.7%, respectively.

GlobalFoundries (GFS), the company that spun off from AMD in 2009, also experienced growth with a nearly 2.8% increase. GlobalFoundries CEO, Thomas Caulfield, announced plans to invest $8 billion in the German chipmaking plant to double production by the end of the decade.

While GlobalFoundries seeks government support for its German plant, Taiwan Semiconductor (TSM) is also vying for similar support for its proposed plant in Dresden. Taiwan Semiconductor shares rose 1.6% during mid-day trading on Thursday.

Meanwhile, Micron faced a 3% decline in its shares as Wall Street debated the company’s mixed guidance for the coming quarter. Despite this, Wedbush Securities analyst Matt Bryson expressed optimism in Micron’s forecast, calling it β€œextremely conservative” and predicting that the company would exceed its own expectations.

On the other hand, Mizuho analyst Vijay Rakesh lowered his estimates on Micron but acknowledged the company’s strong execution in the memory market. Micron projected first-quarter sales of $4.2 billion to $4.6 billion, with the mid-point exceeding analysts’ estimates. However, the company expects adjusted gross margins to be between -2% and -6%, below analysts’ expectations of 0.66%.

While Micron faced challenges, other semiconductor stocks like Seagate Technology (STX) and Western Digital (WDC) managed to buck the decline and rise by around 2% each.

Furthermore, Broadcom (AVGO), Qualcomm (QCOM), Texas Instruments (TXN), ON Semiconductor (ON), and Analog Devices (ADI) all saw gains of roughly 2% or more, contributing to the positive performance in the semiconductor sector.

Even amid concerns about ASML’s lowered forecast for extreme ultraviolet lithography (EUV) technology, semiconductor equipment stocks also participated in the market rebound.

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