Semiconductor Sector Surge
The semiconductor market showed strength on Friday, with optimism around artificial intelligence technologies driving shares higher leading into the weekend. Industry leader Taiwan Semiconductor (NYSE:TSM) spearheaded the momentum.
Taiwan Semiconductor Charges Ahead
Taiwan Semiconductor’s stock surged by nearly 4.5% as the company reported a substantial 59.6% year-over-year increase in revenue for April, totaling NT$236.02B. This growth marked a 20.9% jump from the previous month, reflecting robust demand for semiconductors utilized in artificial intelligence applications.
Market Reaction
Following Taiwan Semi’s strong performance, other industry players also experienced movement. Nvidia saw a 1.4% rise, while AMD held steady. Competitor Intel (NASDAQ:INTC) gained 0.5% after unveiling a significant power capacity agreement with Bloom Energy (BE) for a fuel cell-powered computing data center.
Challenging Quarter for Navitas Semiconductor
Navitas Semiconductor (NASDAQ:NVTS) faced challenges, plummeting 11% due to a weaker-than-expected forecast. Investment firms Needham and Deutsche Bank subsequently lowered their price targets on the stock.
Indie Semiconductor’s Optimistic Outlook
Indie Semiconductor (NASDAQ:INDI) witnessed a 1.8% increase following a positive first-quarter report and optimistic projections for the next quarter.
Synaptics Struggles After Upbeat Results
Synaptics (SYNA) shares declined by 6.4% despite exceeding third-quarter expectations. However, a cautious future outlook led to KeyBanc Capital and Needham lowering their price targets on the company.
Broader Industry Trends
In early trading, most S&P 500 traded semiconductor stocks, including Broadcom (AVGO), Micron (MU), Applied Materials (AMAT), Lam Research (LRCX), and KLA Corp. (KLAC), registered gains. Conversely, ON Semiconductor (ON), Skyworks Solutions (SWKS), and Qorvo (QRVO) experienced slight declines.
SoftBank Sheds Chip Investments
Further adding to the sector’s spotlight was news that SoftBank (OTCPK:SFTBY) is divesting its stakes in publicly traded companies to concentrate on investments in artificial intelligence and chip industries.