Semiconductors

Market Call: Investing Is For Teenagers

Feb 18, 2024 2 min read

Contrary indicator alert! On Sunday, the WSJ posted an article titled "These Teenagers Know More About Investing Than You Do: Custodial investment accounts for minors have surged in popularity." According to the article, the kids are all buying technology stocks: "Brokerage executives say that technology behemoths that are ubiquitous in the lives of teens are often some of the most widely held shares." You have been

Ed Yardeni

S&P 500 Closes In On 5000

Feb 7, 2024 1 min read paid

The S&P 500 closed at a new record high today of 4994.63. This is the Rodney Dangerfield of bull markets: it's getting no respect. The naysayers say that it is too narrow to be a real bull market. Narrowness also makes it vulnerable to a reversal, according to them. However, they aren't giving the bull market due credit. It's true that

Ed Yardeni

Hot Chips

Jan 18, 2024 2 min read paid

Ed Yardeni

NVIDIA Leads The Way

Jan 8, 2024 2 min read paid

Nvidia led the stock market higher today after the world's most valuable chipmaker announced new desktop graphics processors taking advantage of artificial intelligence. The company's stock climbed 6.4% to end at $522.53, its highest close ever (chart). Nvidia's rally boosted the PHLX Semiconductor index by 3.3%. Semiconductors and related technology companies are benefitting from the enthusiasm about AI. Is it hype?

Ed Yardeni

Roaring Stock Market

Dec 21, 2023 2 min read paid

The stock market came roaring back today led by the stock prices of companies that are benefitting from the Roaring 2020s. Strong results and guidance from Micron Technology boosted shares 9% today, while lifting other chip and semiconductor equipment stocks (chart). Micron is the largest US memory chip maker. Its chips go into a wide range of products. The rally since the correction low on October 27 has been breathtaking

Ed Yardeni

Chips Are Hot Despite Recession Fears

Mar 29, 2023 2 min read paid

Semiconductor investors didn't get the recession memo. They have anticipated the industry’s improvement for many months. The S&P 500 Semiconductors industry stock price index has jumped 55.8% from its late 2022 low, as of Tuesday’s close (chart). The index remains 20.9% off of its November 29, 2021 peak. As is often the case in this industry, investors jumped into semiconductor shares before

Ed Yardeni

Chips Are Cheap Again

Jul 7, 2022 1 min read paid

One of the worst performing S&P 500 industries so far this year has been Semiconductors. It is down 36.9% ytd as its forward P/E dropped 44% from 25.0 to 14.0. Meanwhile forward earnings rose 13.1% ytd to a record high. (See our "Blue Angels" chart below).

Ed Yardeni

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