Semiconductor stocks experienced a mixed day of trading on Thursday, with Nvidia standing out after reporting impressive quarterly results and providing strong guidance that received positive feedback from Wall Street. Nvidia’s stock soared by 10% after surpassing the $1,000 mark and announcing its second-quarter revenue expectations of $28 billion, exceeding analyst forecasts. The company’s CEO, Jensen Huang, spoke about the shift towards accelerated computing and artificial intelligence, signaling a new industrial revolution.
During the first quarter, Nvidia performed well, earning $6.12 per share on revenue of $26 billion, surpassing analyst expectations. The company also announced a stock split and a significant increase in its dividend payout. Despite Nvidia’s success, competitors like AMD and Intel saw their stocks drop by 4% and 4.5% respectively.
Taiwan Semiconductors, a key chip manufacturer for Nvidia and AMD, saw marginal gains after predicting a 10% growth in the semiconductor industry for the year. On the other hand, Global Foundries, a competitor to Taiwan Semiconductors, experienced a significant 9% decline in its stock price following the announcement of a secondary offering. Micron Technology’s shares also fell by 1% due to South Korea’s commitment to investing $19 billion in the local chip manufacturing industry.
South Korean President Yoon Suk Yeol unveiled a support program covering funding, infrastructure, research and development, and aid for small and medium-sized businesses in the semiconductor sector. Samsung and SK Hynix are investing heavily to establish a major chip manufacturing center in South Korea.
Analog Devices saw a partial decrease in its earnings despite a positive market outlook, with investment firm Argus raising its price target for the company. Texas Instruments, NXP Semiconductors, and ON Semiconductor also saw declines in their stock prices on Thursday.
Overall, the S&P 500 semiconductor stocks experienced setbacks, with companies like Broadcom and Qualcomm seeing a decline of 1% to 2%, and Monolithic Power Systems, Qorvo, and Skyworks Solutions falling by at least 3%. Despite Nvidia’s success, the semiconductor industry faced challenges and market fluctuations on Thursday.
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