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Semiconductor Stocks Outperform the Broader Market Once Again

Semiconductor Stocks Outperform the Broader Market Once Again

Published: by Omor IE

Key Points

  • Chip stocks have continued rallying today.

  • Other tech stocks have also gained notably.

  • The rest of the market is rather muted, minus those with recent catalysts.

Chip stocks have been driving the stock market’s recovery in recent weeks as most of them have rallied significantly off their lows. Their financials have only been improving. The brief tariff scare caused many to believe that chip companies would end their streak of beating estimates. However, lower chip orders in China were offset by stronger-than-expected demand at home, and these companies continued to surprise analysts.

These gains have continued today, with many of these chip stocks hitting or surpassing earlier peaks. Many other AI-related tech companies have also done well, whereas the broader market hasn’t been as bullish. Investors are mainly focusing on the U.S.-China trade talks, which started in London today.

Here’s a market update as of 1:30 PM (ET) today.

  • The S&P 500 is up 15.21 points, or 0.25%.
  • The Nasdaq Composite is up 67.72 points, or 0.35%.
  • The Dow Jones Industrial Average is up 101.78 points, or 0.24%.

Chip Stocks Gain More

  • ON Semiconductor (NASDAQ: ON) is up 4.1%.
  • Qualcomm (NASDAQ: QCOM) is up 4%.
  • AMD (NASDAQ: AMD) is up 3.4%.
  • Texas Instruments (NASDAQ: TXN) is up 3.3%.
  • Micron (NASDAQ: MU) is up 2.4%.

ADI, INTC, SNPS, LRCX, NXPI, and other chip stocks are also up. Tech stocks such as PLTR, ORCL, and UBER are up 3% to 4%.

Notable Gainers Today

  • Navitas Semiconductor (NASDAQ: NVTS) is up 23.9%. This stock has been rallying massively since late May after Nvidia (NASDAQ: NVDA) partnered with Navitas Semiconductor.
  • Plug Power (NASDAQ: PLUG) is up 16.6% after a $5 billion Uzbekistan deal and the CFO reporting stock purchases. He acquired 650,000 shares at $1.0339 each. This is on top of another purchase earlier this month.
  • AST SpaceMobile (NASDAQ: ASTS) is up 16.1%. The stock is surging due to speculation after an Instagram post by its board member, Adriana Cisneros. It led to rumors that Jeff Bezos might invest in the company.
  • CoreWeave (NASDAQ: CRWV) is up 15.1%. The stock has been rallying since its IPO and is up 303% in the past year.
  • Viasat (NASDAQ: VSAT) is up 14.9% due to Musk-Trump drama putting SpaceX’s subsidies into question.

Notable Losers Today

  • Motorcar Parts of America (NASDAQ: MPAA) is down 16.6% after missing earnings by $0.51. Revenue also fell short of estimates.
  • Opendoor Technologies (NASDAQ: OPEN) is down 13.2% ahead of a possible reverse split to regain Nasdaq compliance.
  • Newsmax (NYSE: NMAX) is down 10%. The stock has been tumbling since its IPO rally.
  • Avidity Biosciences (NASDAQ: RNA) is down 9.8%. The company announced results regarding its del-pacibart braxlosiran (del-brax) therapy. The Phase 3 study came in positive, but analysts haven’t been satisfied with the company’s financials.
  • Compass Diversified (NYSEL CODI) is down 9.5% due to potential financial irregularities. Jefferies also cut its stock rating. The value of this company’s assets is being reassessed, and the price target by Jefferies has been slashed to $7.3 from $28.

The image featured at the top of this post is ©MACRO PHOTO / iStock via Getty Images.

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