Semiconductor stocks like $NVDA, $AVGO, $AMD, $AMAT, $LRCX, $KLAC, and $MU soared up to 7% yesterday, propping up all indices.
Yesterday, the market closed with a modest gain, driven primarily by semiconductor sector stocks, which saw increases ranging from 1 to 7%. It's possible that today the upward momentum will be picked up by stocks from other sectors. For more signals on stocks, you can subscribe to our robots: Swing-Trader-3K-per-position-Medium-Volatility-Stocks-for-Active-Trading-TA-FA.
Notable Companies: Key companies in this industry include NVIDIA Corp (NASDAQ: NVDA), Taiwan Semiconductor Manufacturing Company Ltd (NYSE: TSM), Broadcom (NASDAQ: AVGO), Advanced Micro Devices (NASDAQ: AMD), Texas Instruments (NASDAQ: TXN), Intel Corp (NASDAQ: INTC), Applied Materials (NASDAQ: AMAT), QUALCOMM (NASDAQ: QCOM), Analog Devices (NASDAQ: ADI), and Lam Research Corp (NASDAQ: LRCX).
Industry Description: The semiconductor industry manufactures a wide range of chip-related products, including research and development. These chips are essential components in numerous electronic devices, such as computers, cell phones, smartphones, and GPS devices. Major players in this industry include Intel Corporation, NVIDIA Corp., and Broadcom. Semiconductor companies typically thrive during periods of robust economic growth, fostering further research and development in the sector, which, in turn, promotes productivity and economic expansion. In the near future, the demand for semiconductor products and potential innovations within the segment are expected to expand further, driven by the proliferation of 5G technology, autonomous vehicles, IoT devices, and various AI-driven electronics. This marks an exciting chapter in the technology-driven world. With increasing prospects comes significant competition. In 2015, SIA estimated that the U.S. semiconductor industry ranked as the second most competitive U.S. industry out of 2,882 U.S. industries designated as manufacturers by the U.S. Census Bureau.
Market Cap: The average market capitalization within the Semiconductors Industry is $28.4 billion, with market caps for companies in the group ranging from $13.4 thousand to $1.1 trillion. NVDA holds the highest valuation in this group at $1.1 trillion, while CYBL is the lowest valued company with a market capitalization of $13.4 thousand.
High and Low Price Notable News: The average weekly price growth across all stocks in the Semiconductors Industry was -3.46%. Over the same period, the average monthly price growth was -5.45%, and the average quarterly price growth was 6.83%. NVDA experienced the highest price growth at 7.35%, while EMKR experienced the largest decline at -36.03%.
Volume Trends: The average weekly volume growth across all stocks in the Semiconductors Industry was -6.94%. On a monthly basis, these stocks saw an average volume decline of -39.37%, while on a quarterly basis, the average volume growth was -7.84%.
Fundamental Analysis Ratings: The average fundamental analysis ratings, on a scale where 1 is the best and 100 is the worst, are as follows:
- Valuation Rating: 56
- P/E Growth Rating: 50
- Price Growth Rating: 53
- SMR Rating (Stock Market Rating): 63
- Profit Risk Rating: 61
- Seasonality Score: -24 (Scale: -100 to +100)
These ratings provide insights into various aspects of the companies' financial performance, market perception, and risk assessment.
NVDA: NVDA is in an upward trend as it moved above its 50-day Moving Average on August 21, 2023, suggesting an 88% chance of continued upward movement.
AVGO: AVGO's Aroon Indicator indicates a potential bullish move as the AroonUp green line is above 70 while the AroonDown red line is below 30, with a 78% probability of an upward move.
AMD: AMD's Momentum Indicator turned negative on August 10, 2023, indicating a potential new downward trend with a 77% chance of decline.
AMAT: AMAT is in an upward trend as it crossed above its 50-day Moving Average on August 18, 2023, with an 81% probability of continued upward movement.
LRCX: LRCX's Stochastic Oscillator has been in the oversold zone for 6 days, suggesting a potential upcoming uptrend.
Aroon Indicator for NVDA shows an upward move is likely
NVDA's Aroon Indicator triggered a bullish signal on October 23, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 374 similar instances where the Aroon Indicator showed a similar pattern. In of the 374 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
NVDA moved above its 50-day moving average on September 23, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for NVDA crossed bullishly above the 50-day moving average on September 24, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NVDA advanced for three days, in of 369 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for NVDA moved out of overbought territory on October 23, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 49 similar instances where the indicator moved out of overbought territory. In of the 49 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 12 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NVDA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
NVDA broke above its upper Bollinger Band on October 08, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. NVDA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 67, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: NVDA's P/B Ratio (51.282) is very high in comparison to the industry average of (7.487). P/E Ratio (56.934) is within average values for comparable stocks, (58.779). Projected Growth (PEG Ratio) (1.306) is also within normal values, averaging (2.825). NVDA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.020). P/S Ratio (31.447) is also within normal values, averaging (43.322).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of computer graphics processors, chipsets, and related multimedia software
Industry Semiconductors