Chip stocks, including Nvidia Corp NVDA, Advanced Micro Devices, Inc AMD, Marvell Technology, Inc MRVL, Micron Technology, Inc MU, Taiwan Semiconductor Manufacturing Co TSM, and Arm Holdings plc ARM, are trading higher Friday in sympathy with Broadcom Inc AVGO, bearing testimony to the interconnectivity of the semiconductor ecosystem.
Broadcom reported its fourth-quarter results after Thursday’s closing bell. The company reported revenue of $14.05 billion, up from $9.3 billion a year ago, compared to the analyst consensus of $14.57 billion. EPS of $1.42 missed the analyst consensus of $1.46.
Also Read: Taiwan Semiconductor Set to Command 67% Foundry Market Share By 2025: IDC
Broadcom expects first-quarter revenue of ~$14.60 billion, compared to the $14.57 billion consensus estimate.
The semiconductor industry has been jittery over growing geopolitical tensions between the U.S. and China, prompting Beijing to counter-embargo against the U.S. semiconductor sanctions.
Additionally, President-elect Donald Trump has criticized the U.S. chip subsidy since his campaign days. The subsidy has been pivotal in drawing foreign companies like Taiwan Semiconductor and Samsung, which have committed billions to U.S. semiconductor plants.
A possible optimism over the U.S. Fed rate cut is also influencing the semiconductor stock movement as it will make borrowing cheaper for the highly capital-intensive industry.
Investors can gain exposure to the semiconductor ETF through Invesco PHLX Semiconductor ETF SOXQ and Invesco Semiconductors ETF PSI.
Price Action: At the last check in the premarket session on Friday, NVDA is up 1.16% to $138.94. AVGO is up 18.4%, TSM is up 3.74%, ARM is up 2.45%
Also Read:
Image via Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.