🦉 3 semiconductor stocks to rally on latest U.S. grants
There is a little-known conflict in the world today that is escalating and could quickly get out of hand. While governments and nations used to fight over commodities or trade routes, today's fights are all about who holds access to the world's latest chip and semiconductor technologies. Now that the United States government is getting involved, it could be time to prepare for a big price swing. After slapping China with some curbs on the type of semiconductor technology that could be shipped to the nation, the United States now recognizes the escalating risk that Taiwan could be invaded, putting one of the biggest names in the industry at risk. .
Equity markets traded within a tight range on Tuesday, hovering near record highs, as traders wait on the FOMC. The FOMC is set to release its next policy move today, which may surprise the market. The equity market expects the first cut to come by May, and the FOMC may indicate late summer or fall as the likely timeframe if they estimate at all. The risk for them is letting up on the economic pressure too soon, allowing activity to accelerate and inflation to go along with it.
Earnings reports from big tech will also impact today's action. Reports from Advanced Micro Devices, Microsoft, and Google are mixed, with one outperforming, one in alignment with expectations, and the other not, sending their shares in differing directions in after-hours trading. The takeaway for investors is that market action may become volatile over the next few days to two weeks as the news is digested and the outlook altered.
There is a little-known conflict in the world today that is escalating and could quickly get out of hand. While governments and nations used to fight over commodities or trade routes, today's fights are all about who holds access to the world's latest chip and semiconductor technologies. Now that the United States government is getting involved, it could be time to prepare for a big price swing. After slapping China with some curbs on the type of semiconductor technology that could be shipped to the nation, the United States now recognizes the escalating risk that Taiwan could be invaded, putting one of the biggest names in the industry at risk.
Pfizer turned in a better-than-expected fourth quarter, boosted by products outside the drugmaker's slumping COVID-19 vaccine and treatment.The New York drugmaker also said Tuesday it's reaffirming its forecast for 2024, a month after surprising Wall Street with an initial outlook that missed consensus.In the fourth quarter, Pfizer said it booked 8% operational revenue growth outside its market-leading COVID vaccine, Comirnaty, and treatment, Paxlovid. That excludes the impact of foreign exchanges.Comirnaty sales tumbled 53% in the quarter to $5.4 billion, and Pfizer took a $3.1 billion hit from Paxlovid for a revenue reversal.
Intel's (NASDAQ: INTC) Q4 results and guidance for Q1 were mixed, to say the least, giving ample reason for the market to sell off, but the depths of the correction may have already been plumbed. The takeaway from the results and resulting analyst activity is that the outlook has been reset. Intel is still on track to grow, and its turnaround and growth efforts are gaining traction, but the outlook is trimmed and weighing heavily on the price action. That poses a risk for Intel investors today, but there is a more significant risk for the tech sector and the stock market at large. Tha...
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Starbucks reported record revenue in its fiscal first quarter but lowered its sales outlook for the rest of the year as spending weakens in China and other markets.The Seattle coffee giant said Tuesday it now expects revenue to increase between 7% and 10% in its current fiscal year, down from the 10-12% increase it forecast in early November. Global same-store sales — or sales at stores open at least a year — are now expected to rise between 4% and 6%, down from the previous 5-7% range.The update came after a bumpy first quarter that fell short of Wall Street's expectations. Starbucks said its revenue rose 8% to a record $9.43 billion for the October-December period.
The market, and most investors and traders, had become bearish regarding semiconductor and chip stocks. You can’t really blame them, though – maybe this affected you as well -as during the COVID-19 pandemic, semiconductor shortages were all the rave, affecting several industries and taking a massive hit on those directly exposed to the sector. Today, it seems that the supply chain and the manufacturing names are back to normal, so it is only a matter of returning demand until stocks in the VanEck Semiconductor ETF (NASDAQ: SMH) begin to attract many of those investors back into the space.
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Microsoft Corp. said Tuesday that its profit for the October-December quarter soared 33%, powered by its significant investments in artificial intelligence technology. The company said that increase largely reflected growth in its cloud-computing unit, where Microsoft focuses most of its AI investments.The company reported net income for the quarter of $21.87 billion, or $2.93 per diluted share, beating Wall Street expectations of $2.79 per share. The Redmond, Washington-based software maker posted revenue of $62.02 billion in the quarter, up 18% from $52.75 billion the previous year, also beating expectations."Microsoft is firmly establishing itself as a frontrunner in the AI race," said Jeremy Goldman, director of briefings at Insider Intelligence.
United Parcel Service (NYSE: UPS) shares fell sharply following the Q4 results and 2024 guidance, confirming resistance at a critical level. The technical signal is bearish and may shave another 7.5% off the stock’s price, but that may be the extent of the move. While the results and guidance were weak, continuing the trend set earlier in the year, a return to growth is at hand for this transportation stock, and the high-yield dividend is reliable. The company’s cost-cutting efforts and move toward efficiency and modernization are paying off, driving significant bottom-line strength and setting the company up for accelerated earnings growth over the next few years.
UPS will cut 12,000 jobs and released a revenue outlook for this year that sent its shares down sharply. The company also hinted that its Coyote truck load brokerage business may be put up for sale. UPS acquired the Chicago-based company for $1.8 billion in 2015.The Teamsters in September voted to approve a tentative contract agreement with UPS, putting a final seal on contentious labor negotiations that threatened to disrupt package deliveries for millions of businesses and households nationwide. The contract includes pay raises for full- and part-time union workers, the creation of 7,500 full-time jobs and the filling of 22,500 open positions, allowing more part-timers to transition to full-time.
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