HomeMarket NewsTop Semiconductor Stocks Soar as Market Recovers Amid Tech Surge

Top Semiconductor Stocks Soar as Market Recovers Amid Tech Surge

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Semiconductor stocks surged at the end of the week as interest rates stabilized and investors rallied back into the tech sector, bringing positive sentiment to the market.

AMD Leads the Charge

AMD (AMD) witnessed a substantial rise of nearly 5% on Friday, with no specific company news. Despite the absence of major announcements, trading volume of over 50M shares showcased investor confidence, surpassing the average daily volume of 55M.

Ripple Effects Across Competitors

Notably, Nvidia (NASDAQ:NVDA), a key player in the GPU space and a competitor to AMD, also experienced a 3% upward surge, buoyed by reports of a significant purchase of Nvidia chips by a Chinese artificial intelligence startup earlier this year. This purchase, intended to cover 18 months of operations, preceded the recent export control constraints. This development also resonated positively with Intel (INTC), which, competing with both AMD and Nvidia, saw a 3% increase in its stock value.

Broadcom’s Uptick Amid Geopolitical Ripples

Broadcom (NASDAQ:AVGO) gained 4% as reports emerged regarding China’s delay in approving its acquisition deal with VMware (VMW), signaling underlying geopolitical considerations. The delayed approval was viewed as driven “clearly political” in nature, driving market confidence in Broadcom’s future prospects.

Global Relations Impact Chip Players

The news of President Biden’s upcoming meeting with Chinese President Xi Jinping saw positive ripple effects in the market, propelling Taiwan Semiconductor (TSM) to a nearly 6% gain. This surge was fueled by the improving relationship between the U.S. and China, as well as Taiwan Semiconductor’s strong October revenue figures, portraying a 34.8% month-over-month increase and a 15% rise from the previous year. Additionally, Japan’s plan to subsidize global chip foundries for expansion benefitted competitor GlobalFoundries (GFS), which added 1.3% in parallel.

Qualcomm’s Strategic Moves

Qualcomm (NASDAQ:QCOM) also experienced a noteworthy rise of more than 3% following its termination of a deal with Iridium (IRDM) aimed at integrating satellite communications into Android smartphones. Analysts attributed the termination to multiple factors, including cost implications, technological considerations, and the perceived monetization potential, bolstering Wall Street’s confidence in Qualcomm’s strategic decision-making.

Market’s Response to AI Focus

Arm Holdings (NASDAQ:ARM) saw a slight gain as Morgan Stanley initiated coverage on the British chip design firm, alongside Synopsys (SNPS) and Cadence Design Systems (CDNS), underlining the increasing influence of artificial intelligence across the sector. This market response reflects the growing role of AI in shaping the strategies and performance of key industry players.

Positive Momentum Across Analog and Smartphone-linked Names

Noteworthy gains were also witnessed among analog providers such as Texas Instruments (TXN), Analog Devices (ADI), and NXP Semiconductors (NXPI), as well as smartphone-linked names including Skyworks Solutions (SWKS), Qorvo (QRVO), and Micron Technology (MU). The collective market positivity across these segments underscored the broader upward momentum prevailing in the semiconductor industry.

This comprehensive analysis sheds light on the robust performance and strategic maneuvers evident in the semiconductor market, with companies showcasing resilience and adaptability against a backdrop of dynamic geopolitical and technological shifts.

This story has been updated to include Taiwan Semiconductor’s monthly sales figures.

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