Semiconductor stocks and related exchange traded funds were among the better performing areas of the market Thursday as robust earnings results helped the sector rally.
On Thursday, the VanEck Vectors Semiconductor ETF (NYSEArca: SMH) rose 4.9% and the iShares PHLX Semiconductor ETF (NasdaqGM: SOXX) increased 4.7%.
Fueling the rally in semiconductors, robust earnings reports from three Apple suppliers, NXP Semiconductors (NXPI), Dialog Semiconductor (DLGS) and Qorvo Inc (QRVO), fueled investor optimism over the beleaguered sector, Reuters reports.
The technology sector largely led the stock market’s decade-long bull run, and it also experienced some of the worst selling in October. The Philadelphia Semiconductor index’s 8% pullback was its worst monthly loss since March 2012.
“People are moving back into technology again, which shows that risk appetite picking up and you see people moving back into high-growth names as well,” Jeff Carbone, managing partner at Cornerstone Wealth, told Reuters.
NXP Semiconductors beat expectations for the third quarter and reassured investors on its forward guidance.
British chipmaker Dialog Semiconductor projected double-digit growth for the rest of the year after it closed a deal with Apple (NasdaqGS: AAPL), Cityam reports.