Semis Continue To Tower Over Market

Semiconductors continue to dominate the market and thus dominate our headlines. With that said, today we’ve got a fresh stock breaking out and another setting up, so stick with us. 👇

First up is Tower Semiconductor, an Israeli chip manufacturer that reported results today. The company’s revenue fell 13% YoY to $351.7 million during the fourth quarter but topped the $350 million expected by analysts. Its earnings per share were down about 30% YoY to $0.48, but again, better than anticipated. 🔺

Looking ahead, management affirmed the message we’ve heard from many companies in the space: the consumer technology chip glut is ending, and growth should pick up from here. As a result, it’s targeting notable QoQ growth throughout the year, with a first-quarter revenue target of $325 million (+/-5%). 

The stocktwits community is bulled up on the stock, with message volume and sentiment surging after the results. 🐂

The positive news also boosted other stocks in the sector, with Stocktwits user upsidetrader highlighting Advanced Micro Devices, which looks to be on the verge of a breakout.

With prices looking to reaccelerate after a multi-week pullback, traders have this one on their radars for the coming days. 👀

The next major hurdle for the sector will be Nvidia’s earnings after the bell on February 21st. But for now, the investor/trader appetite for these stocks feels insatiable. 🤷

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Carvana Careens To New Highs

The return of “left for dead” stocks continues as investors look for opportunities in the market beyond the “magnificent seven.” 🔍

Carvana is an excellent example of this turnaround story in action, with the stock posting its first-ever annual profit and catching several analyst upgrades. 💪

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Another Day, Another Chip Rally

It’s another day, which means investors and traders were buying anything in the semiconductor space that isn’t tied down. Let’s see what you missed. 👇

First up, chip-equipment company Applied Materials soared to new all-time highs after citing “artificial intelligence” momentum during its earnings call. Adjusted earnings per share and revenues both topped expectations, while its current-quarter expectations also beat estimates. 🏭

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Cyber Stocks Get Clocked

Palo Alto Networks is getting pounded by sellers after hours, dragging the rest of the sector down with it. Let’s see what happened. 👇

The cybersecurity giant reported adjusted earnings per share of $1.46 on revenues of $1.98 billion. Unfortunately, that’s where the good news ended.

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Nvidia Delivers Bears Another Blow

With it being Nvidia day and all, let’s recap the semiconductor giant’s earnings and reaction. 👇

Before the print, we noted that Nvidia had only seen a downside surprise in earnings vs. expectations three times in the last ten years. However, with analyst estimates high and bullish sentiment roaring into the print, bears thought the contrarian view might have paid off.

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