Monty Rakusen
Semiconductor stocks were mostly lower on Thursday, even as industry stalwart Nvidia (NASDAQ:NVDA) reported better-than-expected quarterly results and guidance that received high praise on Wall Street.
Nvidia shares surged 10% and blew past $1,000 after the company said it expects second-quarter revenue to be $28B, plus or minus 2%. Analysts were forecasting $26.8B in revenue for the Jensen Huang-led company.
Adjusted gross margin is forecast to be around 75.5%, plus or minus 50 basis points, while adjusted operating expenses are expected to be around $2.8B.
“The next industrial revolution has begun — companies and countries are partnering with NVIDIA to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center — AI factories — to produce a new commodity: artificial intelligence,” Huang said.
For the first-quarter, Nvidia earned an adjusted $6.12 per share on $26B in revenue. Analysts expected the Santa Clara, California-based company to post earnings of $5.58 per share on revenues of $24.59B for the quarter.
Nvidia also announced a 10-for-1 stock split and a 150% increase to its quarterly dividend.
Despite Nvidia's surge, shares of competitors AMD (AMD) and Intel (INTC) fell 4% and 4.5%, respectively.
Taiwan Semiconductor (NYSE:TSM), which makes chips for Nvidia, AMD and others, rose fractionally after the global foundry said it expects the semiconductor industry's annual growth to reach 10% this year.
GlobalFoundries (NASDAQ:GFS), which competes with Taiwan Semiconductor in the foundry space, tumbled 9% after the company announced pricing of its $950M secondary offering.
Micron Technology (NASDAQ:MU) shares erased earlier gains and fell 1% as South Korea said it would commit $19B to the local chip making industry in an effort to keep an edge.
The support program encompasses finance, infrastructure, R&D, and aid for small and medium-sized companies, South Korea's President Yoon Suk Yeol announced. The package includes KRW 17T ($12.45B) financial support through the state-run Korea Development Bank for large-scale investments by semiconductor companies.
South Korea's Samsung (OTCPK:SSNLF) and SK Hynix, which compete with Micron in the memory space, are spending KRW 622T ($455.6B) to set up the world's largest chip-making hub.
Analog Devices (ADI) gave back some of its earnings-related gains even as investment firm Argus raised its price target on the analog chip supplier to $260 from $220.
Competitors Texas Instruments (TXN), NXP Semiconductors (NXPI) and ON Semiconductor (ON) were also lower on Thursday.
The other S&P 500 semiconductor stocks were lower on Thursday, as Broadcom (AVGO) and Qualcomm (QCOM) declined between 1% and 2%. Monolithic Power Systems (MPWR), Qorvo (QRVO) and Skyworks Solutions (SWKS) each fell at least 3%.
More on semiconductors
- Nvidia Q1 Earnings: The Bears Are Wrong, This Is Not A Bubble
- Why I Am Still Buying Nvidia Stock
- Nvidia Q1: Flawless Execution From The King (Rating Upgrade)
- Nvidia stock smashes through $1,000 and swells in market cap after big Q1 beat
- DARPA-backed startup EnCharge AI seeks $70M to develop hyperefficient chips: report