TXN - Intel leads chips higher as CEO Gelsinger meets with China to discuss industry

2023-04-11 11:58:27 ET

Intel ( NASDAQ: INTC ) led semiconductor stocks higher on Tuesday as the company's CEO met with a Chinese official to discuss the state of the industry.

In a statement , China's Ministry of Commerce said Minister Wang Wentao talked with Intel ( INTC ) CEO Pat Gelsinger about security and the stability of chip supply.

In addition, China will continue to open up and the country "will provide new opportunities for the world and a broader market for multinational companies including Intel," a translated version of the statement said.

Separately on Tuesday, investment firm Citi remained cautious on Intel ( INTC ) shares despite signs that the PC market is "stabilizing."

Analyst Christopher Danely pointed out that March notebook shipments were up 41% month-over-month, well above Citi's expectations due to new product launches and pull-in demand at the end of the quarter.

Intel ( INTC ) shares rose 0.5% , while competitors AMD ( AMD ) and Nvidia ( NVDA ) fell 2.4% and 1.1% , respectively.

Japanese tech conglomerate SoftBank ( OTCPK:SFTBY ) has reportedly finalized plans for its semiconductor design unit Arm to list on the Nasdaq ( NASDAQ: NDAQ ) exchange in New York.

The initial public offering, which could raise as much as $8B, is likely to be run by Goldman Sachs, JPMorgan and Mizuho Securities, though other banks could also be included.

SoftBank ( OTCPK:SFTBY ) shares were fractionally higher in mid-day trading.

Several other chip stocks saw modest gains in mid-day trading on Tuesday, including Texas Instruments ( TXN ), Qualcomm ( QCOM ) and NXP Semiconductors ( NXPI ).

Others, such as Broadcom ( AVGO ), Analog Devices ( ADI ) and Micron Technology ( MU ) saw fractional losses.

Earlier this month, investment firm Bernstein upgraded Intel ( INTC ), citing the potential for improvements later in the year .

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