Investors typically rely on the semiconductor sector as a forward indicator for predicting the performance of the technology sector. They are watching three stocks today.
Intel (INTC) continued to pull back from its rally point at the $25 level. After the board retired CEO Pat Gelsinger, shares slumped, closing at $22.47 and down by 6.1% on December 3, 2024. The abrupt leadership change disrupts Intel’s turnaround. The firm must increase its research and development efforts in PC graphics chips, AI servers, and desktop CPUs.
After Intel cut 15,000 jobs to save 10 billion, it will lower the odds of the firm catching up to AMD (AMD) and Nvidia (NVDA).
Microchip (MCHP) and ON Semiconductor (ON) fell by 7% and 5.6%, respectively. Markets are responding partly to China’s threat of restricting exports of rare metals. MCHP stock is lower after the firm lowered its revenue forecast for the quarter.
Microchip expects revenue at the lower end of its original guidance ($1.025 billion). It blamed the shutdown of its Tempe wafer fabrication facility due to higher inventory. This will save the firm between $3 million to $8 million.
ON stock fell despite hedge funds buying more shares in the firm. Still, they are short-selling NXP Semiconductor (NXPI). NXPI stock could rebound once the industrial and IoT markets recover.
