AVO - Nvidia Qualcomm higher but chips mixed as debt ceiling prospects weigh
2023-05-30 14:31:17 ET
Semiconductor stocks were mixed on Tuesday as investors worried whether the debt ceiling deal between President Biden and Speak McCarthy would become law.
Nvidia ( NASDAQ: NVDA ) gained nearly 3% - thought well of the best levels of the session - as investors continued to respond favorably to AI-related announcements.
Over the past 24 hours, Nvidia sent out seven press releases, touting its AI capabilities.
Earlier in the session, Nvidia ( NVDA ) reached $1T in market cap, joining the likes of Apple, Amazon and others.
Qualcomm ( NASDAQ: QCOM ) gained more than 4% amid AI euphoria, as investors flocked to semiconductor stocks. Broadcom ( NASDAQ: AVGO ), which had been up as much as 11% earlier in the session, was up just 0.3% even as Wall Street weighed in on the company's quarterly results, set to be released on May 31.
KeyBanc Capital Markets analyst John Vinh said the company is benefiting from multiple upgrade cycles in both networking and broadband, as well as benefiting from custom ASIC demand associated with generative artificial intelligence, calling out Google's ( GOOG ) ( GOOGL ) TPUs as an example.
"We expect AVGO to post in-line to slightly higher results and guidance," Vinh wrote in an investor note.
Intel ( NASDAQ: INTC ) shares rose 2.4% after The Wall Street Journal published an expose with the company's CEO, Pat Gelsinger, discussing its previous flaws.
The Journal reported that Qualcomm ( QCOM ) and Tesla ( TSLA ) had looked into becoming customers for Intel's nascent foundry business, but had passed for varying reasons.
AMD ( AMD ), which competes with Intel ( INTC ) and Nvidia ( NVDA ), fell around 1.5% , erasing earlier gains.
Other chip stocks sank on Tuesday, including fractional losses for Texas Instruments ( TXN ), Analog Devices ( ADI ) and Skyworks Solutions ( SWKS ).
Micron Technology ( MU ), ON Semiconductor ( ON ) and Microchip Technology ( MCHP ) each fell 2% or more .
More on semiconductors
- Laffont's Coatue Management adds stakes in TSM, UNH and exits AVGO, BNTX
- Why I'm Not That Concerned About The Broadcom VMware Deal Breaking
- I Was Wrong About Nvidia
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Nvidia, Qualcomm higher, but chips mixed as debt ceiling prospects weigh