Chip stocks rally on optimistic AMD earnings and Fed’s signal that inflation is easing
AMD Chair and CEO Lisa Su speaks at the AMD Keynote address during the Consumer Electronics Show (CES) on January 4, 2023 in Las Vegas, Nevada.
Robyn Beck | AFP | Getty Images
Semiconductor stocks rose on Wednesday on the back of AMD’s strong earnings report and following the Federal Reserve’s decision to increase the federal funds rate by 0.25 percentage point.
Although the Fed said it expects ongoing rate increases, it also said that inflation has eased somewhat, causing a rally in riskier stocks such as chipmakers.
AMD stock gained over 12% on Wednesday. Nvidia advanced 8%, Qualcomm rose under 4%, and Broadcom gained 3%. Intel, which reported disappointing earnings last month, rose less than 3%. GlobalFoundries, an independent chip manufacturer, rose over 6%.
The VanEck Semiconductor ETF, which tracks a basket of chip stocks, was up 4.7% on Wednesday.
On Tuesday, AMD reported December quarter earnings that beat expectations. The company indicated a weak outlook for the January quarter, though was more optimistic about demand in the second half of 2023.
Still, AMD’s report had a much rosier outlook on the overall semiconductor market than Intel’s earnings report in January, which suggested collapsing demand for its products.
The semiconductor industry is dealing with several problems at the moment, including a glut of extra parts at PC and server makers, and falling prices for certain components like memory and central processors.
Princess Charlene and Prince Albert of Monaco Slam Divorce Rumors
Spilling the Tea! The 'Love Is Blind’ Cast’s Most NSFW Sex Confessions
I have to drain blood from my hands after fights to stop me taking painkillers
Blac Chyna ditches OnlyFans for faith in life-changing transformation: ‘By the grace of God, I’m still here’
New Jersey Pickle Factory Destroyed in Morning Fire
21 Songs to Power Your Morning Routine on Days When You’re Just Not Feeling It
A neurologist explains: If you don’t sleep enough, you will develop dementia faster!
What a Lifting Belt Can—and Can’t—Do for Your Workout
Remittances’ Shift To Digital: Driving Change In An Industry Split Between Yesterday And Tomorrow
Used Car Prices Down 8.7 Percent From Last Year, According To Study
4 of Prince Harry’s Most Searing ‘Spare’ Passages About Prince William You Might’ve Missed
Tom Brady acquires ownership stake in WNBA champion Las Vegas Aces
It’s Never Been Easier to Make an Adventure Game
Kandi Burruss Reveals Low Salary She Earned From First Tour With Xscape
IRS Urges Those Hoping To Help To Beware Of Scammers Using Fake Charities
News14 hours ago
We Need to Stop Freaking Out About AI Deepfakes
News19 hours ago
Man accused of assaulting two women on redeye flight to Boston pleads guilty
Wellness23 hours ago
9 Best Peloton Alternative Bikes, According to Cycling Instructors in 2023: Echelon, Schwinn, and More
Politics20 hours ago
TikTok confirms it banned ex-NBA player Enes Kanter Freedom
News19 hours ago
Three Young Sisters in Tragic ‘Drowning’ Were Actually Murdered, Cops Reveal
Auto19 hours ago
Is Tesla A Premium Car Brand?
Auto20 hours ago
VW Tiguan Spy Video Shows Next-Gen Crossover Finishing Winter Tests
News24 hours ago
5 Best Keanu Reeves Movies, According to Letterboxd