STM - AMD Nvidia buck trend as chips mixed after Powell testimony
2023-03-07 12:52:06 ET
AMD ( NASDAQ: AMD ) and Nvidia ( NASDAQ: NVDA ) bucked the trend on Tuesday as semiconductor stocks were largely mixed after Federal Reserve Chairman Jerome Powell indicated the Fed may need to raise interest rates more-than-expected and for a longer period of time.
AMD ( AMD ) rose more than 3.5% to $84.10 in mid-day trading, while Nvidia ( NVDA ) gained 1.8% to $239.75. No apparent news could be seen to cause the outperformance. However, it was reported last week that activist hedge fund Third Point had taken a passive stake in AMD ( AMD ).
ON Semiconductor ( NASDAQ: ON ) shares gained 1.7% as investment firm Rosenblatt Securities said the company's long-term supply agremeent with BMW was a positive, as its silicon carbide manufacturing capacity and packaging technology are "key market differentiators."
Competitors Wolfspeed ( WOLF ) and STMicro ( STM ) were off their session lows, down around 1% each.
Semiconductor stocks related to smartphones, including Skyworks Solutions ( SWKS ), Qorvo ( QRVO ) and Cirrus Logic ( CRUS ) wavered between fractional gains and losses.
Several other semiconductor stocks in the S&P 500 did not fare as well, however, as Intel ( INTC ), Qualcomm ( QCOM ), NXP Semiconductors ( NXPI ) and Texas Instruments ( TXN ) were all lower, including a near 2% decline for Qualcomm ( QCOM ).
Last month, investment firm Bernstein said AMD ( AMD ) and Apple ( AAPL ) could be responsible for Intel ( INTC ) never seeking "peak" PC revenues again .
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AMD, Nvidia buck trend as chips mixed after Powell testimony