Stocks such as $NVDA, $AVGO, $TXN, $AMD, $LRCX, and others drove the major indices up by approximately 1% yesterday.
Yesterday, stocks in the semiconductor industry surged between 3% to 8%, thereby propelling the indices into the green zone by approximately 1%. However, this seems more like a rebound rather than a trend reversal. Signals for stocks within this sector can be observed on our trading bot: Swing-Trader-1-5K-per-position-Medium-Volatility-Stocks-for-Active-Trading-TA-FA.
Notable Companies Prominent companies within this group 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), QUALCOMM (NASDAQ: QCOM), Applied Materials (NASDAQ: AMAT), Analog Devices (NASDAQ: ADI), and Lam Research Corp (NASDAQ: LRCX).
Industry Description The semiconductor industry encompasses the production of all chip-related products, including research and development. These chips find application in a wide array of electronic devices, such as computers, cell phones, smartphones, and GPS systems. Noteworthy players in this sector include Intel Corporation, NVIDIA Corp., and Broadcom. Semiconductor companies generally thrive during periods of robust economic growth, spurring further research and development within the industry. This, in turn, contributes to productivity and economic expansion. The near future is anticipated to witness a heightened demand for semiconductor products, driven by the proliferation of technologies like 5G, autonomous vehicles, the Internet of Things (IoT), and various AI-driven electronics. With these promising prospects comes intensified competition. In 2015, the Semiconductor Industry Association (SIA) ranked the U.S. semiconductor industry as the second most competitive among 2,882 U.S. industries classified as manufacturers by the U.S. Census Bureau.
Market Cap The average market capitalization across the Semiconductors Industry is $28.2 billion. Market caps for tickers in this group range from $13.4 thousand to $1.1 trillion. NVDA holds the highest valuation in this group at $1.1 trillion, while the lowest valued company is CYBL at $13.4 thousand.
8/12/23 7:31 AM: NVIDIA (NVDA, $408.55) witnessed a $94.5 billion market cap decrease this week. 8/10/23 9:03 PM: NVIDIA (NVDA, $425.54) experienced a market cap drop of $51.7 billion. 8/5/23 7:01 AM: NVIDIA (NVDA, $446.8) saw a $51.1 billion market cap decrease this week.
High and Low Price Notable News The average weekly price growth across all stocks in the Semiconductors Industry was -3.47%. Over the same industry, the average monthly price growth was -2.98%, and the average quarterly price growth was 5.01%. DISPF experienced the highest price growth at 19.25%, while SKYT experienced the largest fall at -19.43%.
8/12/23 7:31 AM: NVIDIA (NVDA, $408.55) emerged as a top loser this week, declining by -8.56%. 8/12/23 7:31 AM: Advanced Micro Devices (AMD, $107.57) was among the top losers this week, declining by -7.12%. A downtrend reversal is expected. 8/12/23 7:31 AM: Micron Technology (MU, $64.37) also emerged as a top loser this week, declining by -7.92%.
Volume The average weekly volume growth across all stocks in the Semiconductors Industry was -3.76%. Over the same industry, the average monthly volume growth was -2.34%, and the average quarterly volume growth was 1.47%.
Fundamental Analysis Ratings The average fundamental analysis ratings, on a scale of 1 (best) to 100 (worst), are as follows:
Valuation Rating: 56 P/E Growth Rating: 50 Price Growth Rating: 53 SMR Rating: 63 Profit Risk Rating: 62 Seasonality Score: -23 (-100 to +100)
NVDA: -3.99% Downtrend, Three Consecutive Days of Decline NVDA has entered a -3.99% downtrend, experiencing a decline for three consecutive days starting on August 11, 2023. This persistent decrease is seen as a bearish indicator. Investors should monitor the stock closely for potential further declines. Analyzing instances where NVDA declined for three days, historical data indicates that in 172 out of 259 cases, the price continued to drop within the following month. The probability of a sustained downward trend is at 66%.
AVGO: -2.46% Downtrend, Three Consecutive Days of Slide AVGO is currently in a -2.46% downtrend, slipping for three consecutive days starting on August 11, 2023. This pattern of consecutive decline is regarded as bearish. Investors are advised to keep watch for potential ongoing decreases. Based on historical instances of AVGO declining for three days, 123 out of 246 cases resulted in further price decline within the subsequent month, indicating a 50% likelihood of a continued downward trend.
TXN: Momentum Indicator Turns Negative, Indicating Potential Downward Shift On July 26, 2023, TXN's Momentum Indicator fell below the 0 level, signaling a potential shift into a new downward move. Traders might consider selling the stock or exploring put options. Analyzing 103 similar instances where the indicator turned negative, in 65 out of 103 cases, the stock moved lower in the following days. The probability of a decline stands at 63%.
AMD: MACD Histogram Crosses Below Signal Line AMD's Moving Average Convergence Divergence Histogram (MACD) turned negative on August 09, 2023, suggesting a potential future stock decline. Analyzing 43 instances of the indicator turning negative, 40 out of 43 cases resulted in subsequent stock drops. This translates to a 90% likelihood of a downward move.
LRCX: Downtrend, Potential Price Decline After Breaking Higher Bollinger Band LRCX broke above its upper Bollinger Band on July 27, 2023. This could indicate an impending stock drop as the price returns below the upper band and towards the middle band. Investors might consider selling the stock or exploring put options. Analyzing 43 similar instances of the stock breaking above the upper band, in 32 out of 43 cases, the stock fell thereafter. The likelihood of success is estimated at 74%.
NVDA sees its 50-day moving average cross bearishly below its 200-day moving average
The 50-day moving average for NVDA moved below the 200-day moving average on March 20, 2025. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on March 26, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on NVDA as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for NVDA turned negative on March 28, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
The 10-day moving average for NVDA crossed bearishly below the 50-day moving average on February 27, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 .
The Aroon Indicator for NVDA entered a downward trend on March 20, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NVDA advanced for three days, in of 374 cases, the price rose further within the following month. The odds of a continued upward trend are .
NVDA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
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 76, 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating steady 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 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: P/B Ratio (34.014) is normal, around the industry mean (9.750). P/E Ratio (37.558) is within average values for comparable stocks, (69.121). Projected Growth (PEG Ratio) (1.064) is also within normal values, averaging (2.391). NVDA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.022). P/S Ratio (21.008) is also within normal values, averaging (32.948).
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.
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