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MarketPulse: Intel Leads Rebound in Semis Ahead of Earnings

Published 10/25/2018, 01:07 PM
Updated 10/25/2018, 01:15 PM
Intel rallied ahead of its quarterly report.
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Investing.com - Semiconductors roared back Thursday, clawing back losses from a day earlier when the sector posted its worst slump since November 2008.

Intel (NASDAQ:INTC) led the charge higher for semis, rising about 4%, ahead of its third-quarter report due after market close.

Intel received a lift ahead of its report after Nomura on Monday raised Intel to buy from neutral and upgraded its price target on the stock to $50 on the back of interim CEO Bob Swan's pledge to prioritize the production of Intel Xeon and Core processors, a move which "bodes well for earnings and gross margin," Nomura said.

Rival chipmaker Advanced Micro Devices (NASDAQ:AMD) fell about 17%, but remained above its session lows after its above-forecast third-quarter earnings were overshadowed by fourth-quarter revenue guidance that fell short consensus estimates.

ASML (NASDAQ:ASML) rose 6%, allaying some investor doubts over growth in the wake of bearish calls from analysts.

"There's likely more downside risk ahead for ASML as memory budgets are continuing to be revised lower on expectations for reduced Cloud spending," Susquehanna said earlier this week in a note to clients.

The S&P Semiconductors Select Industry was up more than 2% at the time of print and market participants continued to monitor the rebound carefully for signs of a bottom, as the sector has been the one of the hardest hit in October.

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