Since the beginning of this year, the semiconductor industry has been mired in a historic shortage of chips, which has dealt a heavy blow to manufacturers from cars to home appliances. And with a number of chip companies reporting quarterly results this week, when the ongoing crisis will end has undoubtedly become the topic that investors are most concerned about right now. In this regard, some industry insiders said that the performance of chip stocks this week is expected to have important indicative significance for the U. S. stock market.
Matt Maley, managing director and chief market strategist at Miller Tabak, said in an interview with the media on Monday that the performance of semiconductor stocks after the earnings report may reflect recent market movements. "for many years, this industry has been a very important leader in the market, especially in recent years."
Chip stocks fell back after nearing the high they reached in February earlier this month. Maley believes that if chip stocks can take advantage of the results to break through the highs set in February and earlier this month, the overall market may rise with it.
"We will get a lot of earnings guidance this week," Maley said. If it can continue to rebound and break through the double tops built in February and early April, it will be very optimistic. "
On the other hand, if semiconductor stocks fall this week, Maley expects it to herald a negative reaction from the overall market.
It is worth mentioning that the Nasdaq hit a record closing high again after a lapse of two months on Monday. The Nasdaq index climbed 0.87% to close at 14138.78. Chip stocks rose almost across the board, with a particularly bright performance, with Midwest data up about 5% and AMD up more than 3%. Semiconductor sector ETF also rose 1.6 per cent.
The chip stocks that report results this week include Intel's rivals AMD, Qualcomm, Western Digital and Texas Instruments. Among them, AMD will make his debut after Tuesday's set. AMD's first-quarter revenue is now expected to reach $3.2 billion, up 62% from a year earlier, and earnings per share are expected to be 44%, up 143% from a year earlier.
Intel reported first-quarter results last week that although its revenue and adjusted earnings per share beat analysts' expectations, the news that revenue from its data center business fell short of expectations could worry some investors.
In addition to chip stocks, Maley also mentioned that more than 95% of stocks on the market are currently above the 200-day moving average, which does not necessarily mean a bullish signal. Instead, he thinks it is more likely to be a sign of excessive prosperity. "the market is really a little ahead in the short term," Maley said. "too many people point out that this is a bullish indicator, but in fact it shows a lot of Bubble."
