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%.
Aroon Indicator for NVDA shows an upward move is likely
NVDA's Aroon Indicator triggered a bullish signal on October 28, 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 371 similar instances where the Aroon Indicator showed a similar pattern. In of the 371 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 46 similar instances where the indicator moved out of overbought territory. In of the 46 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 15 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