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Semiconductor stocks were mostly lower on Thursday as investors fretted about a recovery in the industry despite better-than-expected results from Micron Technology (NASDAQ:MU).
Micron (MU) shares fell nearly 4.5%, bringing down stocks such as Western Digital (WDC) and Seagate Technology (STX), with J.P. Morgan analyst Harlan Sur stating the company has reached a "stabilization phase."
"We believe the team has moved past the trough of the down cycle and is now entering into a stabilization phase (pricing/margins) after a prolonged inventory destocking cycle," Sur wrote in an investment note.
Sur, who reiterated the firm's overweight rating and per-share price target of $75 on Micron (MU), added that Micron (MU) is likely to see stronger bit shipments, stabilization in pricing and margins, along with lower excess inventories, but he is not quite ready to call a turnaround, as he believes second-half demand may be "slightly weaker."
In contrast, Piper Sandler analyst Harsh Kumar upgraded Micron (MU) to neutral from underweight. Kumar also boosted his per-share price target to $70 from $45.
Taiwan Semiconductor (NYSE:TSM) shares fell fractionally in mid-day trading after the company said it would send an unspecified number of employees from Taiwan to Arizona to speed up construction of the company's facilities.
Construction on the plant, which is being built in northern Phoenix, Arizona, started in June 2021. The plant is expected to begin production in 2024 and marks TSM's first U.S.-based plant in 20 years.
Competitors GlobalFoundries (GFS) and Intel (INTC), which is attempting to make waves in the foundry business, fell 0.8% and 1.8%, respectively.
Nvidia (NASDAQ:NVDA) shares fell 0.8%, coming close to breaching the $1T market cap figure. On Thursday, Inflection AI, a startup that develops personal artificial intelligence technologies, said it had raised $1.3B in funding, including from Nvidia.
Other semiconductor stocks saw fractional gains or losses, with NXP Semiconductors (NXPI), Microchip Technology (MCHP) and ON Semiconductor (ON) modestly higher. Conversely, Analog Devices (ADI) and Qualcomm (QCOM) fell fractionally.