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Broadcom (NASDAQ:AVGO) led semiconductor stocks in the S&P 500 higher on Wednesday as the sector, as well as the broader market, awaited the latest interest rate decision and outlook from the Federal Reserve.

In a research note on Wednesday, Deutsche Bank analyst Ross Seymore said fundamentals for the semiconductor industry “largely held in better than expected,” as revenues for companies (excluding memory) were up 14% in 2022. Looking to next year, it’s expected there will be a revenue downturn, and that the recent rally in semiconductor names is “premature” given that there is likely to be “continued fundamental deterioration.”

Seymore added that Deutsche Bank’s preferred names going into next year are Marvell Technology (MRVL) and Qualcomm (NASDAQ:QCOM), along with Broadcom (AVGO) and Maxlinear (MXL).

San Jose, California-based Broadcom (AVGO) rose nearly 2% to $581.69 in mid-day trading, while competitors Qualcomm (QCOM), and Intel (NASDAQ:INTC) rose between 0.5% and 1.5%.

Conversely, Advanced Micro Devices (AMD) and Nvidia (NASDAQ:NVDA) were fractionally lower, losing less than 1%.

Analog chip companies Texas Instruments (TXN) and Analog Devices (ADI) were mixed, as Texas Instruments was slightly positive shortly after 12 p.m. and Analog Devices (ADI) fell a fraction of 1%.

Other chip companies, including Micron Technology (MU), NXP Semiconductor (NXPI) and Microchip Technology (MCHP) also saw fractional gains or losses.

The Federal Reserve and its interest rate setting committee, the Federal Open Market Committee, are widely expected to raise the key interest rate by 50 basis points and update expectations for the outlook for 2023.

Earlier this week, it was reported that Broadcom (AVGO) acquisition target VMware (VMW) saw three of its top executives leave the enterprise software firm.

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