Semiconductor investors shouldn’t ‘freak out’, one analyst says, as pullback helps reduce lofty expectations ahead of earnings
- Chip stocks like Nvidia, AMD see declines due to China and Taiwan concerns
- Semiconductor sector experiences worst daily performance in over four years
- Applied Materials, Lam Research, Advanced Micro Devices among big losers
- Broadcom sees worst single-day percentage loss since March 2020
- Taiwan Semi set to report results on Thursday
- Analyst advises against panicking and selling indiscriminately
Chip stocks like Nvidia and AMD have experienced declines due to concerns over China and Taiwan. The PHLX Semiconductor Index SOX fell 6.8%, its largest single-day percentage drop since March 2020. Applied Materials, Lam Research, Advanced Micro Devices, Super Micro Computer, Nvidia, and Micron Technology all dropped more than 10%. Broadcom saw its worst single-day percentage loss since March 2020. Analyst Peter Tchir advises against panicking and indiscriminate selling, stating that a pullback can help lower expectations for the sector ahead of earnings season.
Factuality Level: 7
Factuality Justification: The article provides accurate and objective information about the decline in microchip stocks due to concerns over Taiwan and China, and includes quotes from experts in the field. It also mentions the potential impact of Biden’s and Trump’s statements on the market. However, it could have provided more context on the specific reasons for the decline beyond just their comments.
Noise Level: 6
Noise Justification: The article provides some relevant information about the impact of political statements on microchip stocks but contains a significant amount of repetitive and irrelevant details, such as mentioning unrelated events from 2020 and focusing on specific stock prices. It also includes filler content in the form of personal opinions and speculations.
Public Companies: Nvidia Corp. (NVDA), Advanced Micro Devices Inc. (AMD), Applied Materials Inc. (AMAT), Lam Research Corp. (LRCX), Super Micro Computer Inc. (SMCI), Micron Technology Inc. (MU), Broadcom Inc. (AVGO), Tokyo Electron Ltd. (8035), ASML Holding NV (ASML), Taiwan Semiconductor Manufacturing Co. (TSM)
Key People: Jordan Klein (Mizuho desk-based analyst), Angelo Zino (CFRA analyst), Peter Tchir (Strategist at Academy Securities)
Financial Relevance: Yes
Financial Markets Impacted: Semiconductor stocks and companies such as Applied Materials Inc., Nvidia Corp., Micron Technology Inc., Broadcom Inc., Tokyo Electron Ltd., ASML Holding NV, and Taiwan Semiconductor Manufacturing Co. were impacted.
Financial Rating Justification: The article discusses the decline in semiconductor stocks due to concerns over U.S. actions related to China and Taiwan, as well as comments from former President Trump on Taiwan’s defense. This impacts financial markets and companies in the semiconductor industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
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