TXN - STMicro ASML lead semiconductor stocks higher as sector awaits Intel results

2023-07-27 10:02:25 ET

European semiconductor companies STMicroelectronics ( NYSE: STM ) and ASML Holding ( NASDAQ: ASML ) led the sector higher in early trading on Thursday as investors awaited results from industry giant Intel ( NASDAQ: INTC ) after the close of trading.

STMicro ( STM ) shares rose more than 7% in early trading after the French-Italian chipmaker reported second-quarter earnings of $1.06 per share as revenue rose 12.8% year-over-year to $4.33B.

Looking ahead, STMicro ( STM ) expects third-quarter revenue to be up 1.1% sequentially, plus or minus 350 basis points, to $4.38B, aided by strength in automotive. Gross margins are expected to be around 47.5%, plus or minus 200 basis points.

ASML ( ASML ) shares tacked on more than 4.5% on Thursday as investors continued to be excited after the company raised its guidance for 2023 last week and there is increased optimism the chip equipment maker could benefit from the industry moving to a more advanced chip design.

On Wednesday, ASML ( ASML ), based in the Netherlands, said it would get its first meaningful contribution from gate-all-around orders in the fourth-quarter of this year.

Micron Technology ( MU ) shares r ose more than 5% on Thursday after Samsung ( OTCPK:SSNLF ) said on Thursday that it would extend production cuts to memory chips. The South Korean-technology giant, which reported a 85% year-over-year drop in earnings per share, said the demand recovery has mostly been linked to higher-end processors as a result of the boom in artificial intelligence.

In April, Samsung ( OTCPK:SSNLF ) said it would cut memory chip output by a "meaningful" level.

Broadcom ( NASDAQ: AVGO ) shares rose 1.3% after the company announced its new Trident 4-X7 Ethernet switch ASIC for enterprise data centers.

Intel ( INTC ) shares ticked up 0.8% as investors awaited fourth-quarter results from the industry giant. Analysts are expecting the company to lose 3 cents per share on $12.14B in revenue.

AMD ( AMD ) and Nvidia ( NVDA ), which compete with Intel in the data center space, rose 2.5% and 3.2% , respectively.

Mobileye ( MBLY ), which was spun off from Intel ( INTC ) this past October, fell 2.8% even as the company boosted its adjusted operating income forecast for the full year.

Mobileye ( MBLY ) now expects the metric to fall within a range of $600M to $631M, up from a prior view of $548M to $577M. The firm left its revenue forecast for the full-year unchanged, however, as it expects sales to be between $2.07B and $2.11B, with the mid-point below the $2.1B estimate.

Most other chip stocks were higher in early trading on Thursday, including Texas Instruments ( TXN ), Analog Devices ( ADI ), On Semiconductor ( ON ) and NXP Semiconductors ( NXPI ), all of which gained 2% or more.

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