Chipmakers recover as investors brace for major earnings reports.
- Intel and AMD gained 2.6% each in overnight trading, while Micron and SanDisk advanced as semiconductor stocks rebounded.
- The SOXX ETF rose 2.4% after an 11.8% weekly decline.
- Intel CEO Lip-Bu Tan said the company was 80% through its restructuring and highlighted AI chip packaging and ASICs as potential growth drivers.
U.S. semiconductor stocks breathed a sigh of relief over the weekend after a brutal week as investors set their positions ahead of the third-quarter results season, with key reports from heavyweights Tesla (TSLA), Netflix (NFLX), and Meta Platforms (META) set to provide an early read of business momentum.
Intel (INTC) and Advanced Micro Devices (AMD) shares rose about 2.6% each in overnight trading late on Sunday, while memory stocks Micron (MU) and SanDisk (SNDK) gained 1.8% and 2.6%, respectively.
The iShares Semiconductor ETF (SOXX) rose 2.4% after falling 11.8% in the past week, its worst since March. South Korea’s KOSPI, whose move influences U.S. chip stocks and vice versa, was up 1% on Monday.
Intel CEO Upbeat On Foundry Turnaround
In an interview to Nikkei, published on Saturday, Intel CEO Lip-Bu Tan made optimistic remarks about its foundry business.
Tan said Intel was “80% done” with its restructuring efforts and identified AI-related advanced chip packaging and application-specific integrated circuits, or ASICs, as other potential areas of growth.
He also praised the U.S. government’s support in boosting local manufacturing and its investment in Intel. “From a foundry’s point of view, Intel had to look at the longer-term horizon, and it’s always very important to have very strong government involvement supporting,” he said, adding that the business could become a growth driver “if we do it right,” but “it takes time.”
Meanwhile, Intel introduced a new GPU at the recent Open Compute Project Global Summit, the GPU D-series, featuring up to 480GB of memory to handle demanding AI inference tasks.
The D-series has now dethroned Nvidia’s Blackwell Ultra B300, which offers 288GB of HBM3e memory, as the data center GPU with the highest memory capacity, according to TechRadar.
Retail Sentiment On Chip Stocks
On Stocktwits, the retail sentiment for SOXX climbed over the past week and was ‘bullish’ on Sunday. The sentiment was ‘bearish’ for INTC, ‘neutral’ for AMD, and ‘bullish’ for MU and SNDK.
$SOXX The last time we had a weekly red candle this big it marked the top. This doesn’t look good… In summary, we may get a little more downside, a nice bounce, but watch out after that. I’m going to be careful here with any longs I’m in until we break last week’s high,” said a trader.
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