Stocks, including Intel, are taking a break from recent gains, with Intel shares falling 0.4% in morning trading on Tuesday after a four-day winning streak. Despite a 6.2% increase on Monday, Intel shares are still down 33% for the year. Analysts believe that some of these losses could be reversed, citing examples from 2023 where underperforming stocks like Intel, Dell Technologies, and IBM saw significant gains in the second half of the year.
In the first half of 2024, the iShares Expanded Tech-Software Sector ETF and the VanEck Semiconductor ETF also showed gains, prompting analysts to suggest a potential “catch-up” trade for certain semiconductor, hardware, and software companies with lower expectations. Advanced Micro Devices, Intel, Apple, and IBM are seen as potential beneficiaries of this trend, with varying performances in the first half of 2024.
Overall, analysts are optimistic about a potential turnaround for lagging stocks in the semiconductor sector, and companies like Intel could see improved performance in the coming months. With the possibility of a catch-up trade in play, investors are advised to keep an eye on these stocks for potential gains.
For more information, readers can reach out to Emily Dattilo at emily.dattilo@dowjones.com.
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