Chips Starting to Dip?
Last week, Intel shares fell as much as 8 percent after the chipmaker reported lower-than-expected revenue for the fiscal fourth quarter. Earnings came in at $1.28 per share as opposed to the. $1.22 per share expected by analysts, according to Refinitiv.
Furthermore, revenue came in at $18.66 billion, falling below the $19.01 billion expected by analysts. Intel is also searching for new leadership after former CEO Brian Krzanich was ousted seven months ago.
SOXS can continue to gain momentum as the industry continues to face headwinds.
“With the semiconductor industry facing a number of headwinds, a including a slowing Chinese economy, soft smartphone sales, softening auto demand, slowing hyperscale demand, a lingering government shutdown, and ongoing trade war certainty, Intel has remained in a strong position relative to peers, with its own supply shortages likely insulating it from headwinds,” said Weston Twigg, an analyst at KeyBanc Capital Markets. “However, we expect headwinds to mount in 1Q as data center demand likely continues to slow and Intel’s new Apple modem business likely declines amid soft demand.”
For more market trends in technology, click here.