La vendita allo scoperto per Invesco Semiconductors ETF dà agli investitori un'idea del grado in cui gli investitori stanno scommettendo sul declino delle azioni di Invesco Semiconductors ETF. I dati relativi alle vendite allo scoperto vengono aggiornati ogni due settimane.

Invesco Semiconductors ETF (ARCA:PSI), Report sulle vendite allo scoperto

Invesco Semiconductors ETF

Invesco Dynamic Semiconductors ETF

PowerShares Dynamic Semiconductors

Technology

Industrials

Other

The fund generally will invest at least 90% of its total assets in the securities that comprise the underlying index. The underlying index is composed of common stocks of U.S. semiconductor companies. These companies are principally engaged in the manufacture of semiconductors. The fund is non-diversified.

Avago Technologi

Analog Devices, Inc.

Nvidia Corp.

Applied Materials, Inc.

Lam Research Corp

Advanced Micro Devices Inc

Qualcomm Inc.

Micron Technology, Inc.

Credo Technology Group Holding Ltd

Cirrus Logic Inc

Equities

Government

News

Regulations

Tech

Media

AAPL

NVDA

PowerShares Exchange-Traded Fund Trust Dynamic Semiconductor Portfolio

Nonostante le sfide e la conclusione di importanti collaborazioni, questo titolo azionario continua a crescere. Ecco di chi si tratta.

Questo titolo sta volando a Wall Street nonostante restrizioni e la fine di una collaborazione

PS International Group Ltd. - Ordinary Shares

PS International Group Ltd

AdvisorShares Psychedelics ETF

PROFILE SOLUTIONS INC by Profile Solutions, Inc.

Profile Solutions Inc

Power Solutions International, Inc. - Common Stock

Power Solutions International Inc

Earnings

AAON

ABCL

ACEL

ACHC

ACHR

ACIC

ACIW

ADSK

AIRG

ALEX

ALHC

ALKT

ALTM

AMBP

AMPH

AMRC

AMWD

ARGX

ARLO

ARRY

ASTH

AUPH

AVPT

BBWI

BCSF

BECN

BLND

BWMX

CABO

CARS

CCOI

CDXS

CLCO

CLOV

CMBT

CMLS

CMPS

CODI

COLL

CRDF

CRNX

CRON

CSTL

CTKB

CUBE

CVEO

CYTK

DAIO

DCGO

DELL

DUOL

ECVT

EFXT

ERIE

Embraer-Empresa Brasileira De Aeronautica

ESEA

ESTC

EVRG

EXFY

FIGS

FOXF

FTDR

FWONA

FWONK

GBTG

GDEN

GDOT

GDRX

Earnings Scheduled For February 27, 2025

With Apple (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) gradually shifting to its own chips, investors are closely monitoring Qualcomm's (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) position in the semiconductor industry. Several ETFs have significant exposure to Qualcomm, making them noteworthy for those tracking developments in the sector:
VanEck Fabless Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMHX#NASDAQ">SMHX</a>): This ETF provides exposure to major fabless semiconductor firms that are key players in wireless communication and AI-driven processing. The fund holds 5.35% of its assets in Qualcomm currently.
iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>): One of the most popular semiconductor ETFs, SOXX holds a diversified portfolio of leading chipmakers, including Qualcomm, in which it currently invests 6.45% of its assets.
Invesco Semiconductors ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>): This ETF invests in semiconductor firms with strong growth potential. Qualcomm is one of its top three holdings, with 5.18% weightage.
Why is the exposure to Qualcomm the talk of town right now? Let&#8217;s see.
<h3 class="wp-block-heading">Is Qualcomm About To Lose A Key Customer?</h3>
Apple has leapt toward self-reliance with the introduction of its<a href="https://www.benzinga.com/tech/25/02/43820197/apple-unveils-iphone-16e-with-a18-chip-ai-features-599-price-tag"> first custom-designed modem chip</a>. Revealed on Feb. 19, this chip will power the newly launched iPhone 16e, a $599 model in Apple&#8217;s latest smartphone lineup. This move could signal a major shift in Apple&#8217;s relationship with Qualcomm, its long-time modem supplier.
For years, Apple has depended on Qualcomm for modem chips that connect iPhones to wireless networks. Qualcomm also supplies modems for Android smartphones and Windows laptops, making it a dominant player in the industry. However, Apple has been working on reducing its dependence on third-party suppliers and took a major leap with the development of the C1 subsystem—a collection of components that now includes Apple&#8217;s in-house modem chip.
Also Read: <a href="https://www.benzinga.com/markets/25/02/43840286/apples-iphone-16e-to-drive-revenue-growth-for-tim-cooks-company-says-top-analyst">Apple&#8217;s iPhone 16e To Drive Revenue Growth For Tim Cook&#8217;s Company, Says Top Analyst</a>
Creating a modem chip isn't easy. It must be compatible with networks worldwide and work seamlessly with hundreds of carriers. Only a handful of companies, including Samsung, MediaTek, and Huawei, have successfully developed their own modem chips.
Apple itself struggled in the past to move away from Qualcomm. It even had a legal battle with the chip giant before settling in 2019 and signing new supply agreements. But now, Apple believes it has cracked the code with its advanced C1 chip, which it plans to refine and expand across its devices in the coming years.
<h3 class="wp-block-heading">What's Next For Qualcomm?</h3>
Qualcomm faces a significant challenge as Apple moves away from its modem business. The transition could result in a revenue hit to Qualcomm's annual revenue. Management at Qualcomm has already <a href="https://www.wsj.com/tech/qualcomm-inks-deal-with-apple-to-supply-iphone-chips-through-2026-4d7890a4">projected </a>that it will supply only 20% of Apple&#8217;s modem chips by 2026, according to a September 2023 Wall Street Journal report.
Qualcomm has been preparing for Apple's departure for years, but it still relies on the iPhone maker for over 10% of its total revenue, according to its annual filing for 2024.
With Apple gradually shifting to its own chips, Qualcomm could eventually lose one of its biggest customers. While Apple hasn't given a timeline for a complete transition, this development raises concerns for Qualcomm's future revenue from iPhone modems.
On the flip side, it is still too early to say whether Apple&#8217;s modem chip is successful. Let&#8217;s say if the phone does not perform as well as iPhones with Qualcomm chips, it will bolster investors&#8217; faith in Qualcomm. For now, investors can only keep an eye on the developments and tap ETFs carrying semiconductor companies including Qualcomm.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/etfs/specialty-etfs/25/02/43858757/bullion-boom-gold-etfs-gain-as-geopolitical-storm-fuels-surge">Bullion Boom: Gold ETFs Gain As Geopolitical Storm Fuels Surge</a></li>
</ul>
Photo: Shutterstock

Specialty ETFs

ETFs

QCOM

SMHX

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

Apple's In-House Modem Chip Sparks Qualcomm Concerns: 3 ETFs With Key Exposure

<a target="_blank" href="https://www.benzinga.com/topic/semiconductors" rel="noreferrer noopener">Semiconductor chipmaker</a> Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) ended collaboration with Singapore&#8217;s PowerAIR after discovering a Taiwan Semiconductor chip&nbsp;in a Huawei Technologies artificial intelligence processor, SCMP <a target="_blank" href="https://www.scmp.com/tech/tech-war/article/3294199/tsmc-cuts-ties-singapore-firm-over-chip-found-huawei-processor-sources" rel="noreferrer noopener">reports</a>.
In 2024, the Taiwanese contract chipmaker <a target="_blank" href="https://www.benzinga.com/24/12/42644888/biden-administration-targets-chinese-firm-over-taiwan-semiconductor-chip-found-in-huawei-tech" rel="noreferrer noopener">suspended shipments to</a> China&#8217;s&nbsp;chip designing firm Sophgo after a chip it ordered from the Taiwanese chipmaker matched with one on Huawei&#8217;s Ascend 910B multi-chip system.
Washington imposed sanctions on Chinese smartphone giant Huawei in 2020, citing national security threats.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/01/42882959/intel-partners-with-amazon-cloud-to-drive-next-gen-smart-vehicle-tech" rel="noreferrer noopener">Intel Partners with Amazon Cloud to Drive Next-Gen Smart Vehicle Tech, Wins Stellantis, Karma Auto As Clients</a>
The update coincides with reports indicating Nvidia and other chipmakers are susceptible to potential <a target="_blank" href="https://www.benzinga.com/government/regulations/25/01/42897081/nvidia-and-ai-chip-stocks-brace-for-impact-as-biden-administration-considers-new-china-export-ban-report" rel="noreferrer noopener">U.S. AI chip sanctions</a> to China. Washington&#8217;s new curbs could restrict Nvidia&#8217;s AI chip shipments, with three-tier export rules favoring allies like Taiwan and barring Tier 3 nations like China.
Taiwan Semiconductor stock surged over 105% in the last 12 months, gaining prominence by manufacturing AI chips for Nvidia Corp GPUs and chips for Apple Inc smartphones.
Taiwan Semiconductor reported <a href="https://pr.tsmc.com/english/news/3198" target="_blank" rel="noreferrer noopener">consolidated revenue of</a> 2.89 trillion New Taiwan dollars between January and December 2024 (up by 33.9% year-on-year). It reported a <a href="https://pr.tsmc.com/english/news/3177" target="_blank" rel="noreferrer noopener">consolidated revenue of</a> 2.03 trillion New Taiwan dollars between January and September 2024. 
Therefore, it implies that the chipmaker reported a consolidated revenue of 868.46 billion New Taiwan dollars ($26.3 billion versus a consensus of $26.2 billion) for the December quarter versus $19.62 billion a year ago.
The company expects <a target="_blank" href="https://www.benzinga.com/news/earnings/24/10/41373163/nvidia-supplier-tsmc-reports-q3-revenue-earnings-beat-amid-rising-demand-for-ai-chips" rel="noreferrer noopener">fourth-quarter revenue</a> of $26.1 billion &#8211; $26.9 billion.
Taiwan Semiconductor considered China the most significant revenue source after the U.S., as per the SCMP report. The chipmaker expected its China sales to grow by 26% in 2024 to $10.4 billion, accounting for 12% of its total revenue of $88.3 billion, SCMP cites Visible Alpha.
Investors can gain exposure to stocks of companies that manufacture semiconductors through the Invesco Semiconductors ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>) and ProShares UltraShort Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SSG#NYSE">SSG</a>).
Price Action: TSM stock is up 1.34% at $209.89 premarket at last check Friday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/price-target/25/01/42881889/uber-nvidia-partnership-to-unlock-value-by-leveraging-ai-to-advance-ridesharing-autonomous-tech-analyst" target="_blank" rel="noreferrer noopener">Uber, Nvidia Partnership To Unlock Value By Leveraging AI To Advance Ridesharing, Autonomous Tech: Analyst</a></li>
</ul>
Image via Shutterstock.

Taiwan Semiconductor Hits $26.3 Billion Q4 Revenue, Reportedly Ends PowerAIR Deal Over Huawei Chip Breach Amid US Sanctions

Chip stocks, including Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), Marvell Technology, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>), Micron Technology, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>), Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>), and Arm Holdings plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), are trading higher Friday in sympathy with Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), bearing testimony to the interconnectivity of <a target="_blank" href="https://www.benzinga.com/topic/semiconductors" rel="noreferrer noopener">the semiconductor ecosystem</a>.
Broadcom reported its&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/12/42472970/broadcom-reports-mixed-q4-results-eps-beat-revenues-miss-q1-guidance-in-line-with-estimates" rel="noreferrer noopener">fourth-quarter results</a> after Thursday&#8217;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: <a target="_blank" href="https://www.benzinga.com/24/12/42480928/taiwan-semi-set-to-command-67-foundry-market-share-idc" rel="noreferrer noopener">Taiwan Semiconductor Set to Command 67% Foundry Market Share By 2025: IDC</a>
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 <a target="_blank" href="https://www.benzinga.com/24/12/42420201/trumps-return-threatens-billions-in-us-chip-investment-from-taiwan-samsung" rel="noreferrer noopener">has criticized</a> 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 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXQ#NASDAQ">SOXQ</a>) and Invesco Semiconductors ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>).
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:
<ul>
<li><a href="https://www.benzinga.com/media/24/12/42482813/intel-cfo-hints-at-possible-division-split-as-company-struggles-to-recapture-moat" target="_blank" rel="noreferrer noopener">Intel CFO Hints at Possible Division Split as Company Struggles To Recapture Moat</a></li>
</ul>
Image via Shutterstock

Movers

AVGO

MRVL

SOXQ

Nvidia, AMD, Taiwan Semi Gain As Broadcom's Q4 Performance Sparks Sector-Wide Surge

China responded swiftly on Tuesday to new U.S. restrictions on semiconductor technology exports by imposing tighter controls on critical minerals used in <a href="https://www.benzinga.com/topic/semiconductors">chip manufacturing</a>.
The move targets gallium, germanium, and antimony — essential materials for advanced electronics and defense applications, The Wall Street Journal <a href="https://www.wsj.com/world/asia/china-tightens-curbs-on-exports-of-materials-with-chip-making-applications-to-u-s-4348a02c?mod=latest_headlines">reports</a>.
What Happened: A day after the U.S. blacklisted 140 Chinese entities and restricted exports of memory chips vital to artificial intelligence, Beijing retaliated with export bans and reviews for U.S.-bound shipments of these minerals. The Chinese Ministry of Commerce justified the measures as necessary for national security.
China also cautioned its businesses against purchasing American chips due to reliability and safety concerns. 
The restricted minerals are critical to the U.S. economy and defense supply chains, with Beijing accounting for a significant portion of imports between 2019 and 2022. For instance, the U.S. relied on China for 80% of its antimony needs during this period, WSJ reports.
Also Read: <a href="https://www.benzinga.com/economics/macro-economic-events/24/12/42299957/feds-kugler-sees-inflation-progress-but-warns-policy-is-not-on-a-preset-course">Fed&#8217;s Kugler Sees Inflation Progress But Warns: &#8216;Policy Is Not On A Preset Course&#8217;</a>
The new U.S. export controls, which <a href="https://www.benzinga.com/government/regulations/24/12/42265847/biden-targets-china-with-new-chip-restrictions-nvidia-slides">took effect Monday</a>, primarily target Chinese firms such as Naura Technology Group, Huawei-linked companies and equipment manufacturers. These measures also extend restrictions to non-U.S. chip suppliers reliant on American technologies, sparking concern among global players like Taiwan Semiconductor Manufacturing Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>).
Why It Matters: The clash underscores the fragility of global supply chains and the geopolitical stakes tied to semiconductor dominance. With China tightening its grip on critical materials, the U.S. faces mounting pressure to diversify its supply sources. 
Experts warn these developments could reshape the global semiconductor landscape as companies and governments navigate new trade barriers. U.S. firms such as Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Lam Research Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>), and KLA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KLAC#NASDAQ">KLAC</a>) may feel the ripple effects alongside international players exempt from these restrictions, including Dutch firm ASM International (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>).
ETFs such as the Invesco Semiconductors ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NASDAQ">PSI</a>) and the SPDR S&amp;P Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XSD#NYSE">XSD</a>) could also feel the effects of these trade restrictions, given their exposure to impacted companies.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/global/24/12/42301885/south-korea-etfs-won-pare-losses-as-yoon-makes-u-turn-on-martial-law-declaration">South Korea ETFs, Won Pare Losses As Yoon Makes U-Turn On Martial Law Declaration</a></li>
</ul>
Photo by Fahroni via Shutterstock

Asia

Global

ASML

KLAC

LRCX

China Retaliates Against US Chip Sanctions, Tightens Mineral Exports

On Monday, the outgoing Biden administration will implement its third crackdown on China&#8217;s <a target="_blank" href="https://www.benzinga.com/topic/semiconductors" rel="noreferrer noopener">semiconductor industry</a> within three years, citing the same national security threats as reasons it mentioned for its prior sanctions, intensifying geopolitical tensions between the countries.
The initiative, launching Monday, will impose export restrictions on 140 Chinese entities, including chip equipment manufacturers such as Naura Technology Group and other firms, targeting advanced memory chips and chipmaking tools.
Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) stock is trading lower on Monday. Prior reports indicated Nvidia&#8217;s potential to earn <a target="_blank" href="https://www.benzinga.com/government/24/10/41204521/nvidias-gpu-sales-at-risk-as-china-pushes-local-ai-chips-in-retaliation" rel="noreferrer noopener">$12 billion in sales</a> from 1 million H20 GPUs in China in 2024.&nbsp;
Also Read: <a target="_blank" href="https://www.benzinga.com/24/11/42244371/stellantis-to-suspend-production-of-fiat-500-ev-at-turin-plant-again-whats-going-on" rel="noreferrer noopener">Stellantis To Suspend Production Of Fiat 500 EV At Turin Plant Again: What&#8217;s Going On?</a>
Reuters reports that the restrictions will also affect Chinese chip toolmakers Piotech and SiCarrier Technology and shipments from nations like Singapore and Malaysia.
The package includes new controls on 24 additional chipmaking tools, software, and high-bandwidth memory chips essential for AI training and high-end applications.
Lam Research Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>), KLA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KLAC#NASDAQ">KLAC</a>), and Applied Materials Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMAT#NASDAQ">AMAT</a>) could face significant impacts alongside non-U.S. firms such as Dutch company ASM International (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>). These controls are part of a broader strategy to limit Beijing&#8217;s access to advanced technologies critical for its semiconductor sector.
<a target="_blank" href="https://www.benzinga.com/24/11/42244387/nvidia-lam-reasearch-applied-materials-stocks-gain-as-biden-government-eyes-softer-semiconductor-sanctions-against-china" rel="noreferrer noopener">Prior reports indicated</a> that the U.S. proposed to go softer on China for the third semiconductor embargo following intense negotiations with allies like Japan and the Netherlands and American chip equipment makers.
Chinese entities added to the list include over 100 semiconductor and chipmaking toolmakers, two investment companies, and others linked to Huawei Technologies, a telecom giant pivotal to China&#8217;s chip advancements.
Companies on the list will require special licenses to receive shipments from U.S. suppliers, with most license requests likely to be denied.
The new rules also expand the foreign direct product rule, restricting exports from U.S., Japanese, and Dutch manufacturers to essential Chinese chip plants.
Due to agreements with the U.S., Japan and the Netherlands are exempt, which relieves ASML Holding N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>)&nbsp;and&nbsp;Tokyo Electron Ltd. (OTC:<a class="ticker" href="https://www.benzinga.com/stock/TOELY#OTC">TOELY</a>).
However, manufacturers in other nations, such as Israel, South Korea, and Taiwan, are affected, to the dismay of Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) and Samsung Electronics Co (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>).
Investors can gain exposure to semiconductor stocks through the Invesco Semiconductors ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>) and the SPDR S&amp;P Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XSD#NYSE">XSD</a>).
Price Actions: At the last check on Monday, NVDA stock was down 0.53% at $137.52 in premarket trading. LRCX is down 0.31%, and AMAT is down 0.32%. ASML is up 0.32%, TSM is up 2.32%.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/24/11/42241689/taiwan-semiconductors-advanced-2nm-chips-to-hit-us-market-by-2028" target="_blank" rel="noreferrer noopener">Taiwan Semiconductor&#8217;s Advanced 2nm Chips To Hit US Market By 2028: Report</a></li>
</ul>
Photo courtesy: Shutterstock

Emerging Markets

AMAT

SSNLF

TOELY

Biden Targets China With New Chip Restrictions, Nvidia Slides

Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) is advancing technology beyond the digital space, pushing the boundaries of spatial artificial intelligence (AI) and robotics to bring the focus back to the physical world.
Nvidia&#8217;s Vice President of Omniverse and Simulation Technology, Rev Lebaredian, <a target="_blank" href="https://www.cnbc.com/2024/10/02/nvidia-spatial-ai-the-omniverse-next-big-thing.html" rel="noreferrer noopener">told</a> CNBC the real revolution lies in how AI interacts with the physical world.
At the core of Nvidia&#8217;s efforts is the Omniverse platform, where Lebaredian and his team develop precise digital replicas of real-world environments.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/10/41139084/nvidia-expands-ai-offerings-with-new-open-source-models-and-unreal-engine-5-plugins" rel="noreferrer noopener">Nvidia Expands AI Offerings with New Open-Source Models and Unreal Engine 5 Plugins</a>
Lebaredian told CNBC creating intelligent robots starts by accurately representing the physical world inside a computer.
Nvidia is applying the technology in autonomous driving, visual assistance, and warehouse automation, where robots can simulate real-world scenarios in virtual spaces.
The stock is trading upwards on Thursday after the U.S. enacted reforms to boost the semiconductor sector.
<a target="_blank" href="https://www.benzinga.com/markets/equities/24/10/41158922/biden-signs-law-to-exempt-certain-us-chipmaking-facilities-from-federal-environmental-reviews-un" rel="noreferrer noopener">Under a fresh ruling</a>, the U.S. government fast-tracked the progress of particular U.S. Chips Act beneficiaries by exempting them from federal environmental reviews. The legislation followed the U.S. Fed rate cut to spur discretionary spending.
Nvidia chief Jensen Huang debunked Wall Street concerns by <a target="_blank" href="https://www.benzinga.com/news/24/10/41156900/nvidia-ceo-jensen-huang-says-demand-for-next-gen-blackwell-gpu-platform-insane-everyone-wants-to-hav" rel="noreferrer noopener">acknowledging huge demand</a> for Nvidia&#8217;s Blackwell&nbsp;GPU, which is in full production and progressing as planned.
Nvidia stock is up over 173% in the last 12 months despite losing over 6% in the previous five days.
Investors can gain exposure to Nvidia through Invesco Semiconductors ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>) and SPDR S&amp;P Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XSD#NYSE">XSD</a>).
<h2 class="wp-block-heading">Will Nvidia Stock Go Up?</h2>
When trying to assess whether or not NVIDIA will trade higher from current levels, it's a good idea to take a look at analyst forecasts. 
Wall Street analysts have an average 12-month price target of $152.69 on NVIDIA. The Street high target is currently at $200.0 and the Street low target is $90.0. Of all the analysts covering NVIDIA, 33 have positive ratings, 2 have neutral ratings and no one has negative ratings.
In the last month, 2 analysts have adjusted price targets. Here's a look at recent price target changes <a href="https://www.benzinga.com/quote/NVDA/analyst-ratings">[Analyst Ratings]</a>. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering NVIDIA have performed in recent history. 
Stocks don't move in a straight line. The average stock market return is approximately 10% per year. NVIDIA is 155.38% up year-to-date. The average analyst price target suggests the stock could have further upside ahead.
For a broad overview of everything you need to know about NVIDIA, visit <a href="https://www.benzinga.com/quote/NVDA">here</a>. If you want to go above and beyond, there's no better tool to help you do just that than <a href="https://pro.benzinga.com/">Benzinga Pro</a>. Start your free trial today.
Price Action:&nbsp;NVDA stock is up 3.54% at $123.07 at the last check Thursday.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/news/24/09/40980388/amd-chief-predicts-custom-chips-will-outperform-gpus-sees-shift-in-ai-chip-demand-report" target="_blank" rel="noreferrer noopener">AMD Chief Predicts Custom Chips Will Outperform GPUs, Sees Shift in AI Chip Demand: Report</a></li>
</ul>
Image via Shutterstock

What's Going On With Nvidia Stock On Thursday?

Struggling chipmaker Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>)&nbsp;continues to receive <a target="_blank" href="https://www.benzinga.com/news/24/09/40968128/qualcomm-reportedly-eyes-potential-takeover-of-intel-amid-60-stock-decline-but-antitrust-concerns-lo" rel="noreferrer noopener">takeover proposals from</a> chip companies, the latest being Arm Holdings Plc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>) following Qualcomm Inc&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) proposal earlier.
Arm Holdings recently proposed to acquire Intel&#8217;s product unit. However, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-09-27/arm-rejected-by-intel-after-approaching-it-about-buying-product-unit?sref=TBDibEcD" rel="noreferrer noopener">reports</a> that Intel is not looking to sell the business division.
Intel stock plunged 31% as it failed to capitalize on the artificial intelligence shift, which is something that contract chipmaker Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) excelled at.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/41012678/super-micro-unveils-next-gen-servers-powered-by-intels-latest-xeon-chips" rel="noreferrer noopener">Super Micro Unveils Next-Gen Servers Powered by Intel&#8217;s Latest Xeon Chips</a>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/27091711/newplot-1-7.png" alt="" class="wp-image-569782" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/27091711/newplot-1-7.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/27091711/newplot-1-7-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Meanwhile, some reports indicated Intel&#8217;s plans to convert its <a target="_blank" href="https://www.benzinga.com/news/24/09/40897994/whats-going-on-with-intel-stock-on-tuesday" rel="noreferrer noopener">foundry business into</a> an independent unit, including exploring a spinoff into a publicly traded company. The chipmaker also explored divesting stake in the programmable chip unit&nbsp;Altera.
However, Intel&#8217;s recent big wins included a&nbsp;U.S. chipmaking deal from&nbsp;Amazon.Com Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) Amazon Web services and the U.S. Chip grant.
The chipmaker also clarified that it would not divest a majority stake in the struggling <a target="_blank" href="https://www.benzinga.com/news/24/09/40941075/whats-going-on-with-autonomous-driving-stock-mobileye-thursday" rel="noreferrer noopener">Israeli autonomous driving company</a> Mobileye Global Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MBLY#NASDAQ">MBLY</a>), whose stock is down 66% in the last 12 months.
Intel&#8217;s exploration of stake sales to companies like Qualcomm and Arm could hinder its U.S. subsidy over antitrust grounds, the Financial Times <a target="_blank" href="https://www.ft.com/content/ff0ca77d-ad35-45ba-a493-201a26932efb" rel="noreferrer noopener">reports</a>.
Multiple deals including Nvidia&#8217;s proposal to snap Arm Holdings from&nbsp;Softbank Group Corp (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBF#OTC">SFTBF</a>) (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SFTBY#OTC">SFTBY</a>) and Intel&#8217;s&nbsp;Tower Semiconductor (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSEM#NASDAQ">TSEM</a>) deal have succumbed to global regulatory opposition.
The semiconductor sector had a good week, buoyed by the <a target="_blank" href="https://www.benzinga.com/news/earnings/24/09/41046485/whats-going-on-with-nvidia-braodcom-intel-and-other-chip-stocks-on-thursday" rel="noreferrer noopener">key rate cuts</a> in the U.S. and China, an upbeat quarterly print from Micron Technology, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>), and continued AI investments from Big Tech companies.
Semiconductor ETFs, Invesco Semiconductors ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>) and SPDR S&amp;P Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XSD#NYSE">XSD</a>), gained 5%- 7% in the last five days.
Price Action: INTC stock is down 0.04% at $23.91 at the last check on Friday.
Photo via Shutterstock

AMZN

INTC

MBLY

SFTBF

SFTBY

TSEM

What's Going On With Intel Stock On Friday?

Semiconductor, hardware, and artificial intelligence-linked stocks led by Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) are down as the sector continues to pull back.
AI stocks led by Nvidia, Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), and Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) selloff continue their <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40746353/nvidia-super-micro-arm-tumble-2-in-premarket-most-chip-peers-deep-in-red-whats-dragging-down-sem" rel="noreferrer noopener">downward price trajectory</a> as the Nvidia and Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) quarterly prints failed to impress the Street.
Broadcom released its third-quarter earnings on Thursday. The <a target="_blank" href="https://www.benzinga.com/news/earnings/24/09/40741225/broadcom-q3-earnings-revenue-beat-eps-beat-continued-strength-in-ai-solutions-and-vmware-2024-ai-gu" rel="noreferrer noopener">topline grew 42%</a> to &nbsp;$13.07 billion in the third quarter, topping the analyst estimate of $12.96 billion. The chipmaker expects fourth-quarter revenue of $14 billion, above the analyst consensus of $12.70 billion. The <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/n40740457/broadcom-inc-announces-third-quarter-fiscal-year-2024-financial-results-and-quarterly-dividend" rel="noreferrer noopener">adjusted gross margin</a> grew by 110 bps sequentially and 230 bps year-on-year to 77.4%.
JPMorgan analyst Harlan Sur projected upside, citing robust AI growth, VMware momentum, and recovery in <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40750949/broadcom-analysts-lifts-ai-revenue-forecast-to-12b-on-potential-strong-demand-from-" rel="noreferrer noopener">traditional semiconductor sectors</a>.
Last week, Nvidia&#8217;s <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40613050/nvidia-q2-earnings-guidance-top-street-view-as-ai-fuels-record-data-center-revenue-gross-margin-fal" rel="noreferrer noopener">second-quarter topline</a> grew 122% to $30.04 billion, surpassing the analyst estimate of $28.68 billion. It expects third-quarter revenue of $31.85 billion-$33.15 billion versus the analyst consensus of $31.77 billion. The adjusted gross margin declined 320 bps sequentially and grew by 450 bps year-on-year.
BofA Securities analyst Vivek Arya maintained a bullish outlook backed by data center and AI training demand and <a target="_blank" href="https://www.benzinga.com/news/24/09/40737481/nvidias-future-tied-to-llms-and-gaming-despite-ai-capex-skepticism-remains-a-sector-favorite-analyst" rel="noreferrer noopener">supply chain recovery</a>.
VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>), which tracks the overall performance of the 25 largest U.S.-listed companies that produce semiconductors, including Nvidia, Taiwan Semiconductor, Broadcom, and AMD, has been down 12% in the last five days. iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) fell 12% in the previous five days.
Nvidia has been down 15% in the last five days. AMD lost over 10%, and Taiwan Semiconductor lost 8%. The selloff refused to subside despite assurances from <a target="_blank" href="https://www.benzinga.com/news/24/09/40735058/taiwan-semis-supplier-dismisses-selloff-projects-strong-ai-growth-surge" rel="noreferrer noopener">contract chipmakers like</a> Taiwan Semiconductor and Samsung Electronics (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) regarding sustained AI demand.
ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>), which corresponds to two times (2x) the daily performance of the Dow Jones U.S. Semiconductors&nbsp;Index, lost 26% in the last five days.
ETFs with exposure to riskier indexes noted volatility during the period. ProShares UltraShort Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SSG#NYSE">SSG</a>), which corresponds to two times the inverse (-2x) of the daily performance of the Dow Jones U.S. Semiconductors Index, gained 28% in the last five days.
The ETFs tracking broader indexes like the S&amp;P 500 and NASDAQ saw relatively lesser value losses due to Big Tech stocks like Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>).
SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which tracks the S&amp;P 500 stock market index, including Big Tech stocks, lost 3.5% in the last five days. Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which tracks the NASDAQ index, lost 5% in the last five days.
Photo via Shutterstock

Sector ETFs

Broad U.S. Equity ETFs

FTXL

MSFT

Semiconductor ETFs Take A Beating, Dragged Lower By Nvidia, AMD, and Broadcom Stocks

Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) saw its shares decline Friday despite reporting substantial second-quarter profits following a verbal attack from former President Donald Trump.
Trump questioned the U.S. <a target="_blank" href="https://www.benzinga.com/government/24/07/39816230/whats-going-on-with-nvidia-amd-and-semiconductor-peer-stocks-on-wednesday" rel="noreferrer noopener">obligation to defend</a> Taiwan, flagging the lack of a formal defense treaty between the U.S. and Taiwan, unlike with South Korea and Japan, the Financial Times <a target="_blank" href="https://www.ft.com/content/2d464117-1aed-4918-8ce6-db341a59735a" rel="noreferrer noopener">reports</a>. Taiwan Semiconductor stock lost over 6% so far this week.
The key Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) supplier announced a net profit of $7.6 billion for <a target="_blank" href="https://www.benzinga.com/news/24/07/39842530/whats-going-on-with-nvidia-and-amd-stocks-on-thursday" rel="noreferrer noopener">the June quarter</a>, surpassing market expectations as continued artificial intelligence demand translates into tailwinds.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/19054322/newplot-44.png" alt="" class="wp-image-445140" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/19054322/newplot-44.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/19054322/newplot-44-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
It also projected a more than one-third increase in third-quarter sales.
With Taiwan holding a 90% market share in AI server production, Taiwan Semiconductor&#8217;s role in the global supply chain is irreplaceable.
In 2023, the AI chip market reached $53.6 billion, as per <a target="_blank" href="https://www.statista.com/statistics/1283358/artificial-intelligence-chip-market-size/#:~:text=In%202023%2C%20the%20artificial%20intelligence,billion%20U.S.%20dollars%20in%202025." rel="noreferrer noopener">Statista</a>. Projections indicate it will rise to $71.3 billion by the end of 2024 as interest in AI applications continues to grow, with estimates suggesting the market will exceed $90 billion in 2025.
However, political risks for Taiwan Semiconductor and other Taiwanese companies are rising as China intensifies threats and military exercises around the island, FT writes. Approximately 80-90% of Taiwan Semiconductor&#8217;s production capacity is based in Taiwan.
Taiwan Semiconductor has consistently stated that it will maintain most of its manufacturing, research, and development in Taiwan while investing $65 billion in three factories in Arizona, USA.
Trump, a Republican presidential candidate, added to the uncertainty by suggesting that Taiwan should compensate the U.S. for its defense.
Consequently, AI chip stocks mainly dependent on Taiwan Semiconductor, like Nvidia and&nbsp;Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), saw a selloff this week. Nvidia lost over 5%, and AMD lost&nbsp;over 14% so far this week. AI server company and a key Nvidia supplier Super Micro Computer, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) lost 10% so far this week.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/19060047/newplot-45.png" alt="" class="wp-image-445172" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/19060047/newplot-45.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/07/19060047/newplot-45-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
According to <a target="_blank" href="https://www.globenewswire.com/news-release/2024/07/17/2914745/0/en/Semiconductor-Market-Size-Expected-to-Reach-USD-1-137-57-Billion-by-2033.html" rel="noreferrer noopener">Precedence Research</a>, the global semiconductor market was valued at $584.17 billion in 2024 and is projected to grow to approximately $1.14 trillion by 2033, with a CAGR of 7.64% from 2024 to 2033. Investors can gain exposure to the semiconductor sector through Invesco Semiconductors ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>) and SPDR S&amp;P Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XSD#NYSE">XSD</a>).
Price Actions:&nbsp;TSM shares traded lower by 0.62% at $170.80 premarket at the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

SMCI

AI Chip Stocks Nvidia, AMD, Taiwan Semi Saw A Selloff This Week -  What's Going On?

Looking for broad exposure to the Technology - Semiconductors segment of the equity market? You should consider the Invesco Semiconductors ETF (ARCA:PSI), a passively managed exchange traded fund launched on 06/23/2005.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Technology - Semiconductors is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.
Index Details
The fund is sponsored by Invesco. It has amassed assets over $939.64 million, making it one of the larger ETFs attempting to match the performance of the Technology - Semiconductors segment of the equity market. PSI seeks to match the performance of the Dynamic Semiconductor Intellidex Index before fees and expenses.
The Dynamic Semiconductor Intellidex Index is comprised of stocks of semiconductor companies. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.57%, making it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.19%.
Sector Exposure and Top Holdings
It is important to delve into an ETF&#39;s holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Information Technology sector--about 100% of the portfolio.
Looking at individual holdings, Broadcom Inc&nbsp;accounts for about 5.95% of total assets, followed by Nvidia Corp and Micron Technology Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mu#NASDAQ">MU</a>).
The top 10 holdings account for about 47.87% of total assets under management.
Performance and Risk
So far this year, PSI has gained about 30.52%, and it&#39;s up approximately 44.64% in the last one year (as of 07/08/2024). During this past 52-week period, the fund has traded between $37.92 and $64.84.
The ETF has a beta of 1.38 and standard deviation of 34.12% for the trailing three-year period, making it a high risk choice in the space. With about 31 holdings, it has more concentrated exposure than peers.
Alternatives
Invesco Semiconductors ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, PSI is a great option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares Semiconductor ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/soxx#NASDAQ">SOXX</a>) tracks PHLX SOX Semiconductor Sector Index and the VanEck Semiconductor ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/smh#NASDAQ">SMH</a>) tracks MVIS US Listed Semiconductor 25 Index. IShares Semiconductor ETF has $15.63 billion in assets, VanEck Semiconductor ETF has $23.21 billion. SOXX has an expense ratio of 0.35% and SMH charges 0.35%.
<a href="https://www.zacks.com/stock/news/2297703/should-you-invest-in-the-invesco-semiconductors-etf-psi?cid=CS-BENZ-FT-sector_etf-2297703">To read this article on Zacks.com click here.</a>

Markets

Analyst Ratings

Trading Ideas

Should You Invest in the Invesco Semiconductors ETF?

Micron Technology, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/g39173636/micron-samples-next-gen-graphics-memory-for-gaming-and-ai" rel="noreferrer noopener">announced the sampling</a> of its next-generation GDDR7 graphics memory, which boasts the industry&#8217;s highest bit density, at the Computex event in Taiwan.
Utilizing Micron&#8217;s 1β DRAM technology, GDDR7 delivers 32 Gb/s performance with a 60% increase in bandwidth over GDDR6.
It enhances AI, gaming, and high-performance computing with improved efficiency and reliability. GDDR7 reduces power consumption and improves battery life with a new sleep mode, increasing throughput and response time for AI workloads.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/24/05/39118149/amd-tsmc-broadcom-and-other-chip-stocks-hit-by-bidens-fresh-ai-chip-export-restrictions-details" rel="noreferrer noopener">AMD, TSMC, Broadcom And Other Chip Stocks Hit By Biden&#8217;s Fresh AI Chip Export Restrictions: Details</a>
Meanwhile, <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39168191/nvidia-maintains-lead-as-key-ai-beneficiary-analyst-boosts-estimates-after-taiwan-e" rel="noreferrer noopener">analysts noted Nvidia&#8217;s</a> addition of HBM4 support while doubling networking for Infiniband/SpectrumX/NVLink as a catalyst for Micron, pronouncing Nvidia as the key AI beneficiary after the Taiwan event.
Micron expects&nbsp;HBM to be a <a target="_blank" href="https://www.benzinga.com/news/24/05/39042042/whats-going-on-with-micron-stock-tuesday-chip-designer-plans-new-factory-by-2026" rel="noreferrer noopener">multibillion-dollar business</a> in fiscal 2025, enabling over 50% of PCs&nbsp;to be AI-enabled by 2027. It also plans to construct a new plant next to its Hiroshima factory by 2026 and invest 800 billion yen in advanced DRAM.
Micron stock gained 87% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;Invesco Semiconductors ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>)
and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action: MU&nbsp;shares traded higher by 4.71% at $132.61 at&nbsp;the last check on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Company

What's Going On With Micron Tech Stock On Wednesday?

Micron Technology&nbsp;Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) has&nbsp;been ordered&nbsp;to pay $445 million in damages to&nbsp;Netlist&nbsp;Inc&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/NLST#OTC">NLST</a>) for infringing on Netlist&#8217;s patents related to high-performance memory-module technology.
The decision was reached by&nbsp;a jury in the U.S. District Court for the Eastern District of Texas, reported Reuters.
Netlist had accused Micron of using its patented technology to improve the capacity and performance of memory modules in semiconductor-memory products.
The jury found Micron&#8217;s infringement to be willful, which might allow the judge to increase the damages up to threefold.
&#8220;We are grateful for the jury&#8217;s service, and their recognition of the importance of Netlist&#8217;s innovation,&#8221; said Netlist attorney Jason Sheasby, which the report quoted.
This&nbsp;follows a previous $303 million verdict Netlist secured against&nbsp;Samsung Electronics Co Ltd&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) last year in the same court.
The lawsuit filed by Netlist in 2022 claimed&nbsp;that Micron&#8217;s semiconductor memory-module lines infringed on three of its patents.
Micron had denied the allegations and contested the validity of Netlist&#8217;s patents.&nbsp;In April, a U.S. Patent and Trademark Office tribunal invalidated one of the patents, which could&nbsp;potentially&nbsp;reduce the damages awarded.
Related Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/05/38650086/intel-micron-among-winners-in-bidens-280b-chips-act-for-semiconductor-advancement" rel="noreferrer noopener">Intel, Micron Among Winners In Biden&#8217;s $280B CHIPS Act For Semiconductor Advancement</a>
In April, the company received a $6.1 billion grant under the CHIPS and Science Act to aid Micron&#8217;s commitment to investing about $50 billion in gross capital expenditures for domestic&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38437555/microns-6-1b-chips-act-funding-propels-major-expansion-in-us" rel="noreferrer noopener">leading-edge memory manufacturing through 2030.&nbsp;</a>
Micron has also raised its&nbsp;fiscal 2024 capital expenditure to $8 billion,&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/05/38948239/whats-going-on-with-bidens-chips-act-beneficiary-micron-tech-stock-tuesday" rel="noreferrer noopener">higher than prior expectations of $7.5 billion</a>.
Micron stock gained more than 89% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;Invesco Semiconductors&nbsp;ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>) and&nbsp;REX FANG&nbsp;&amp; Innovation Equity Premium Income ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>).
Price Action:&nbsp;MU shares are&nbsp;trading higher by 1.16% at $127.73 in&nbsp;premarket at the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Legal

General

FEPI

NLST

Micron Ordered To Pay $445M Penalty For Patent Violation: Report

Micron Technology, Inc.&nbsp;(NASDAQ:&nbsp;MU) shares are trading lower after the company raised its 2024 capex expectations on Tuesday.
The&nbsp;key&nbsp;$280 billion&nbsp;U.S.&nbsp;CHIPS Act beneficiary now expects fiscal 2024 capital expenditure of $8 billion, higher than prior expectations of $7.5 billion.
Micron is a leading provider of&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38254546/micron-dominates-high-bandwidth-memory-market-anticipates-significant-revenue-growt" rel="noreferrer noopener">high-bandwidth memory (HBM) chips</a>,&nbsp;which are&nbsp;critical components of the hardware used in artificial intelligence servers.&nbsp;Nvidia Corp&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) H200 chips will leverage Micron&#8217;s advanced HBM3E.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38437555/microns-6-1b-chips-act-funding-propels-major-expansion-in-us" rel="noreferrer noopener">Micron&#8217;s $6.1B CHIPS Act Funding Propels Major Expansion In&nbsp;US</a>
&#8220;In fiscal 2025, we expect HBM to be a multibillion-dollar business for us,&#8221; Reuters cites COO Manish Bhatia said at the J.P. Morgan Technology, Media and Communications Conference.
Micron expects to enable more than 50% of the&nbsp;PCs&nbsp;to be AI-enabled by 2027.
Micron also announced&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/05/g38940208/micron-expands-workforce-development-collaborations-to-meet-future-semiconductor-job-demand" rel="noreferrer noopener">a strategic expansion</a>&nbsp;in workforce development initiatives to diversify the semiconductor workforce and build a robust talent pipeline through education and career reentry initiatives.&nbsp;
Micron has tapped&nbsp;GlobalFoundries Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GFS#NASDAQ">GFS</a>), the&nbsp;U.S.&nbsp;National Science Foundation (NSF), and additional leaders in industry, government, and education to boost access to opportunities and to meet the growing demand for semiconductor talent in the&nbsp;U.S.
Analysts had predicted Micron&#8217;s upside from its&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/05/38649999/whats-going-on-with-micron-tech-stock-on-monday" rel="noreferrer noopener">HBM&nbsp;market moat</a>. They also saw upsides from strong DRAM pricing, shipments of higher-priced, higher-margin products, and&nbsp;increased&nbsp;AI&nbsp;exposure.
Micron stock gained 94% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;Invesco Semiconductors&nbsp;ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>) and&nbsp;REX FANG&nbsp;&amp; Innovation Equity Premium Income ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>).
Price Action: MU shares traded lower by 0.60% at $128.21 at the last check Tuesday.
Photo via Shutterstock

What's Going On With Biden's Chips Act Beneficiary Micron Tech Stock Tuesday?

Micron Technology Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) shares are trading higher after&nbsp;Baird&nbsp;analyst Tristan Gerra upgraded the stock from Neutral to Outperform and raised its&nbsp;<a target="_blank" href="https://www.benzinga.com/quote/MU/analyst-ratings" rel="noreferrer noopener">price target from $115 to $150</a>.
Citi&nbsp;analyst Christopher Danely remains bullish on the U.S. semiconductor sector. His top pick remains&nbsp;Micron Technology, Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>)
&nbsp;with other Buy-rated names, including&nbsp;Advanced Micro Devices, Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>),&nbsp;Broadcom Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>),&nbsp;Analog Devices, Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADI#NASDAQ">ADI</a>),&nbsp;Microchip Technology Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>), and&nbsp;ON Semiconductor Corp&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ON#NASDAQ">ON</a>).
Last Friday afternoon, the SIA announced March monthly sales of $50.8 billion (up 16.4% month-over-month), above the analyst&#8217;s estimate of $50.1 billion (up 14.8% M/M) and seasonality of up 12.0% M/M driven by above-seasonal sales across all products, most notably from analog and microcontrollers, Danely noted.&nbsp;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38029253/nvidia-broadcom-lead-ai-charge-bofa-analyst-tips-amd-micron-as-emerging-contenders-" rel="noreferrer noopener">Nvidia, Broadcom Lead AI Charge: BofA Analyst Tips AMD, Micron as Emerging Contenders in Explosive Market Growth</a>
He said analog and microcontroller units were up roughly 50% M/M, well above seasonality of&nbsp;up&nbsp;roughly 20% M/M.&nbsp;
This data, together with recent commentary from the analog companies, supports Danely&#8217;s view of an analog inventory replenishment in the second half of 2024.
Danely maintained his 2024 semi sales forecast of up 11% Y/Y.&nbsp;
Analysts have previously forecasted Micron&#8217;s upside from its&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38254546/micron-dominates-high-bandwidth-memory-market-anticipates-significant-revenue-growt" rel="noreferrer noopener">high-bandwidth memory (HBM)</a>&nbsp;market moat. They also projected upside from strong DRAM pricing and shipments of higher-priced, higher-margin and&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37756497/microns-stock-soars-as-analysts-forecast-strong-ai-and-dram-driven-earnings" rel="noreferrer noopener">increasing AI exposure</a>.
Micron stock gained 97% in the last 12 months. Investors can gain exposure to the stock via&nbsp;REX FANG &amp; Innovation Equity Premium Income ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>) and&nbsp;Invesco Semiconductors ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>).
Price Action:&nbsp;MU shares traded higher by 4.75% at $120.15 on the last check Monday.
Also Read: <a href="https://www.benzinga.com/news/24/03/37795929/micron-technology-poised-for-growth-on-strong-ai-demand-as-industry-enters-the-most-significant-memo" target="_blank" rel="noreferrer noopener">Micron Technology Poised for Growth On Strong AI Demand As Industry Enters The Most Significant Memory Cycle: Analyst</a>
Photo courtesy of Micron

Upgrades

Price Target

Reiteration

MCHP

What's Going On With Micron Tech Stock On Monday?

ACM Research Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ACMR#NASDAQ">ACMR</a>) shares are trading lower on Friday after the company announced preliminary unaudited&nbsp;<a href="https://www.benzinga.com/pressreleases/24/04/g38454367/acm-research-announces-preliminary-unaudited-revenue-and-shipments-for-the-first-quarter-2024" target="_blank" rel="noreferrer noopener">revenue and shipments for the first quarter.</a>
The company registered preliminary unaudited revenue for the first quarter of 2024 of $150 million to $152 million versus&nbsp;the estimate&nbsp;of $152.41 million.&nbsp;This&nbsp;represents&nbsp;<a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">year-over-year growth of 102% to 105%</a>.
The company said preliminary total shipments&nbsp;are expected&nbsp;to be&nbsp;in the range of&nbsp;$235 million to $240 million,&nbsp;which would represent&nbsp;year-to-year growth of 163% to 169%.
ACM Research&nbsp;reaffirmed&nbsp;full year&nbsp;2024 revenue outlook in the range of $650 million to $725 million versus $701.7 million,&nbsp;which would&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">represent&nbsp;year-to-year growth of 17% to 30%.</a>
According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>, ACM Research stock has gained over 117% in the past year. Investors can gain exposure to the stock via Invesco Semiconductors ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>) and Matthews China Discovery Active ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHS#NASDAQ">MCHS</a>).
ACMR Price Action:&nbsp;ACM Research shares are trading lower by 4.28% to $27.08 at publication Friday.&nbsp;
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38465570/snap-investors-celebrate-q1-earnings-but-analysts-arent-ready-to-party-just-yet-the">Snap Investors Celebrate Q1 Earnings, But Analysts Aren&#8217;t Ready To Party Just Yet: &#8216;The Most Expensive Name In Social&#8217;</a>

ACMR

MCHS

Why ACM Research Shares Are Falling Today

On Thursday,&nbsp;Micron Technology, Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) announced signing a non-binding Preliminary Memorandum of Terms (PMT)&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38311337/microns-us-expansion-plans-get-presidential-nod-with-6-1b-investment" rel="noreferrer noopener">for $6.1 billion in</a>&nbsp;funding under the&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/g38423841/micron-biden-harris-administration-u-s-senate-majority-leader-schumer-announce-6-1b-in-chips-and-s" rel="noreferrer noopener">CHIPS and Science Act</a>.&nbsp;
This funding will support Micron&#8217;s planned leading-edge memory manufacturing in Idaho and New York.
The CHIPS and Science Act will allocate $6.1 billion in grants to aid Micron&#8217;s commitment to investing about $50 billion in gross capital expenditures for domestic leading-edge memory manufacturing through 2030.&nbsp;
These grants and additional state and local incentives will facilitate the construction of one leading-edge memory manufacturing facility next to Micron&#8217;s existing leading-edge R&amp;D facility in Boise, Idaho, and two leading-edge memory facilities in Clay, New York.
Today&#8217;s announcement marks the first phase of Micron&#8217;s strategy to establish a leading-edge R&amp;D and manufacturing center in Boise, Idaho, and a four-fab manufacturing complex in Clay, New York, over the next twenty-plus years.&nbsp;
This strategy involves a potential investment of up to $125 billion and aims to grow Micron&#8217;s memory bit supply to match long-term industry demand growth.&nbsp;
Micron&#8217;s planned advanced semiconductor manufacturing facilities will likely generate approximately 75,000 domestic jobs over the next 20-plus years.&nbsp;
Analysts have highlighted Micron&#8217;s leadership in the&nbsp;<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38254546/micron-dominates-high-bandwidth-memory-market-anticipates-significant-revenue-growt" rel="noreferrer noopener">high-bandwidth memory</a>&nbsp;(HBM) product sector, with HBM3E offering 30% greater power efficiency than competitors, translating into significant revenue visibility.&nbsp;
Micron projects that its market share in HBM will match its broader DRAM market share by 2025.&nbsp;Adopting&nbsp;HBM could significantly influence Micron&#8217;s gross margins, potentially restoring them to peak levels seen in memory cycles, as per analysts.
Micron Technology stock gained over 92% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;REX FANG&nbsp;&amp; Innovation Equity Premium Income ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>) and&nbsp;Invesco Semiconductors&nbsp;ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>).
Price Action:&nbsp;MU shares traded lower by 0.05% at $111.72 on&nbsp;the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors
Photo via Shutterstock

Micron's $6.1B CHIPS Act Funding Propels Major Expansion In US

Micron Technology Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) will likely receive $6.1 billion in grants from the U.S. Commerce Department.&nbsp;
This funding is for Micron&#8217;s domestic factory, which aims to shift semiconductor production back to the U.S..&nbsp;
Bloomberg&nbsp;<a target="_blank" href="https://www.bloomberg.com/news/articles/2024-04-17/micron-mu-to-get-over-6-billion-in-chips-act-grants-in-announcement-next-week?srnd=technology-vp&amp;sref=TBDibEcD" rel="noreferrer noopener">reports</a>&nbsp;that this initiative aligns with the broader national strategy to rejuvenate American chip manufacturing, a sector that has largely migrated to Asia over recent decades.&nbsp;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38167236/micron-unveils-quad-port-ssd-for-next-gen-intelligent-vehicles" rel="noreferrer noopener">Micron Unveils Quad-Port SSD For Next-Gen Intelligent Vehicles</a>
The grant, which is part of a package that also includes loans, is expected to be announced next week.
President Joe Biden plans to highlight this development during a visit to the Syracuse, New York, area, where Micron is constructing new factories. The project is also underway in Boise, Idaho, Micron&#8217;s headquarters.
Micron&#8217;s ambitious plans include the construction of up to four factories in New York State and one in Idaho.&nbsp;
The Commerce Department focuses on funding projects that promise production startup by the end of the decade, with Micron&#8217;s initial two New York sites expected to meet this timeline.
<a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38254546/micron-dominates-high-bandwidth-memory-market-anticipates-significant-revenue-growt" rel="noreferrer noopener">Analysts have flagged</a>&nbsp;Micron&#8217;s strategic focus on the high-bandwidth memory (HBM) market, particularly its leadership in the HBM3E sector, known for its 30% greater power efficiency than competitors.&nbsp;
The company&#8217;s emphasis on HBM, designed for specific computing architectures, marks a shift from the generic approach in memory products and is integral to engaging with critical data center market customers.&nbsp;
As analysts have noted, adopting HBM could significantly enhance Micron&#8217;s gross margins.
Micron stock gained 88% in the last 12 months. Investors can gain exposure to the stock via&nbsp;REX FANG &amp; Innovation Equity Premium Income ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>) and&nbsp;Invesco Semiconductors ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>).
Price Action:&nbsp;MU shares traded higher by 1.93% at $118.58 premarket on the last check Thursday.
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38209204/microns-dram-supply-temporarily-hit-by-taiwan-earthquake-but-long-term-outlook-remains-strong" rel="noreferrer noopener">Micron&#8217;s DRAM Supply Temporarily Hit by Taiwan Earthquake, But Long-Term Outlook Remains Strong</a>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Micron's US Expansion Plans Get Presidential Nod with $6.1B Investment

Piper Sandler&nbsp;analyst Harsh V. Kumar reiterated an Overweight rating on&nbsp;Micron Technology, Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) with a price target of $130.
During Kumar&#8217;s AI Discovery Bus Tour last week, he engaged with Micron&#8217;s management, gaining valuable insights into their strategic direction, particularly in the high-bandwidth memory (HBM) market. Micron&#8217;s leadership in the HBM3E product sector, noted for its 30% greater power efficiency over competitors, is converting into significant revenue visibility, per the analyst.&nbsp;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38209204/microns-dram-supply-temporarily-hit-by-taiwan-earthquake-but-long-term-outlook-remains-strong" rel="noreferrer noopener">Micron&#8217;s DRAM Supply Temporarily Hit by Taiwan Earthquake, But Long-Term Outlook Remains Strong</a>
Kumar stated that the company has already sold out its HBM capacity for 2024 and most of 2025 and anticipates revenue growth from this segment in the coming years. This reflects a broader industry shift towards differentiation, with HBM designed to cater to specific compute architectures, moving away from the previously commodity-like approach in memory products, he said.
Micron&#8217;s projection that its HBM market share, in both bits and revenue, will align with its broader DRAM market share by 2025 underscores the strategic importance of HBM in its product lineup.&nbsp;
The company is facing challenges in expanding HBM capacity, requiring cleanroom environments and significant capital expenditure, yet is committed to overcoming these hurdles. The analyst said that this commitment is part of Micron&#8217;s broader strategy to engage with leading customers in the data center market, who have been providing positive feedback through the qualification processes.
Looking ahead, Micron is preparing for the next generation of HBM, with HBM4 volume production slated for around 2026, underscoring the company&#8217;s commitment to innovation and its customers&#8217; future needs, per the analyst. The adoption of HBM will likely substantially impact Micron&#8217;s gross margins, potentially returning them to peak levels seen in previous memory cycles, Kumar said.&nbsp;
Kumar projected third-quarter revenue and EPS of $6.61 billion and $0.87.
Micron stock gained over 96% in the last 12 months. Investors can gain exposure to the stock via&nbsp;REX FANG &amp; Innovation Equity Premium Income ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>) and&nbsp;Invesco Semiconductors ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>).
Price Action:&nbsp;MU shares traded higher by 0.07% at $122.5 on the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Analyst Color

Micron Dominates High-Bandwidth Memory Market, Anticipates Significant Revenue Growth: Analyst

Micron Technology Inc&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) announced that the April 3&nbsp;<a target="_blank" href="https://www.benzinga.com/government/24/04/38108147/taiwan-semi-a-key-supplier-to-nvidia-and-apple-springs-back-to-action-after-taiwan-earthquake" rel="noreferrer noopener">earthquake in Taiwan</a>&nbsp;will likely reduce its dynamic random access memory (DRAM) supply for the calendar quarter by up to a mid-single-digit percentage.&nbsp;
With operations in four Taiwanese locations, Micron plays a significant role in the global chip supply chain, sparking concerns about potential disruptions due to the earthquake.&nbsp;
However, the company clarified that while it hasn&#8217;t reached full DRAM production capacity post-earthquake, the event will not affect its long-term DRAM supply capabilities, Reuters reports.
These chips, designed for use in&nbsp;Nvidia Corp&#8217;s&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) H200 graphics processing units for AI applications, have seen tremendous market demand.&nbsp;
The booming AI industry&#8217;s demand for DRAM chips has led to a surge in Micron&#8217;s stock as investors recognize the company&#8217;s growing role in supplying the technology sector.
In response to the increasing demand, especially from the AI sector, Micron began mass production of its high-bandwidth memory (HBM) chips in February.&nbsp;
A 7.2-magnitude earthquake struck Taiwan on Wednesday at 8 a.m. local time, with Hualien in eastern Taiwan as its epicenter. This was the most severe earthquake to hit the region in 25 years.&nbsp;
Taiwan Semiconductor Manufacturing Co&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) quickly evacuated its factories, raising concerns about potential production impacts.&nbsp;
However, TSMC reassured that its safety protocols were effective, reporting a swift recovery of over 80% in tool functionality at its facilities, including the advanced Fab 18 in Tainan, expecting full operational status by day&#8217;s end. Meanwhile, Nvidia communicated that, after consulting with its manufacturing partners, it foresees no disruptions to its supply chain due to the earthquake, as reported by Reuters.
Analysts&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38167236/micron-unveils-quad-port-ssd-for-next-gen-intelligent-vehicles" rel="noreferrer noopener">flagged Micron&#8217;s HBM3E</a>&nbsp;due to its outstanding thermal and power efficiency, highlighting its 30% reduced power consumption over SK Hynix and its technological edge over Samsung, which faced delays.&nbsp;
They predicted Micron would dominate the HBM market, potentially exceeding $1 billion in HBM revenues by the 2024 calendar year, positioning Micron as a significant player in the semiconductor sector.
Micron stock surged over 96% in the last 12 months. Investors can gain exposure to the stock via&nbsp;REX FANG &amp; Innovation Equity Premium Income ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FEPI#NASDAQ">FEPI</a>) and&nbsp;Invesco Semiconductors ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSI#NYSE">PSI</a>).
Price Action:&nbsp;MU shares traded higher by 3.16% at $126.06 on the last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy of Micron

Micron's DRAM Supply Temporarily Hit by Taiwan Earthquake, But Long-Term Outlook Remains Strong

Comments

Invesco Semiconductors ETF

Vendite allo scoperto

Invesco Semiconductors ETF (ARCA:PSI), Report sulle vendite allo scoperto

Notizie

PARTNER/COLLABORATORE

BENZINGA NEL MONDO