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Is the Intel rally bad for other semiconductor stocks?

Intel is up 17% for the year, causing outflows from other semiconductor stocks. Is it justified?

IT spending is expected to rise again this year after staying mostly flat since 2012.

You'd think that'd be good for semiconductor companies who provide the insides and supplies for the equipment large IT firms and their workers use.

But there's a chance most of the gains will mostly be snapped up by Intel ( INTC ) , which is up more than 17% for the year.

That's put pressure on smaller companies in the industry, at a time when a concerns over a pullback in the stock market already pressure smaller tech firms.

With that in mind, we decided to screen semiconductor stocks that might be being unduly affected by Intel's rally, so we looked for mismatches between earnings growth, and growth in share price.

Since earnings are the primary factor that drives demand for stocks, a mismatch in the figures often suggests that the stock is undervalued, in this case, that it might be in the process of being oversold as people pick up Intel shares late in the rally.

Do you think semiconductor stocks will survive a more competitive Intel? Use the list below to begin your analysis and let us know what you think in the comments.

Click on the interactive chart to view data over time.

1. NXP Semiconductors NV ( NXPI , Earnings , Analysts , Financials ): Provides mixed signal solutions and semiconductor components primarily in Japan, Europe, South Korea, Rest of Asia Pacific, and the Americas. Market cap at $15.71B, most recent closing price at $62.40.

The EPS estimate for the company's current year increased from 4.4 to 4.65 over the last 30 days, an increase of 5.68%.

This increase came during a time when the stock price changed by -6.68% (from 66.6 to 62.15 over the last 30 days).

2. FormFactor Inc. ( FORM , Earnings , Analysts , Financials ): Designs, develops, manufactures, sells, and supports precision and high performance advanced semiconductor wafer probe cards. Market cap at $372.18M, most recent closing price at $6.70.

The EPS estimate for the company's current year increased from 0.15 to 0.16 over the last 30 days, an increase of 6.67%.

This increase came during a time when the stock price changed by -18.44% (from 8.19 to 6.68 over the last 30 days).

3. Integrated Device Technology, Inc. ( IDTI , Earnings , Analysts , Financials ): Designs, develops, manufactures, and markets a range of integrated circuits for communications, computing, and consumer industries worldwide. Market cap at $2.17B, most recent closing price at $14.54.

The EPS estimate for the company's current year increased from 0.68 to 0.72 over the last 30 days, an increase of 5.88%.

This increase came during a time when the stock price changed by -7.37% (from 15.47 to 14.33 over the last 30 days).

4. AU Optronics Corp. ( AUO , Earnings , Analysts , Financials ): Develops, produces, and sells thin film transistor liquid crystal displays (TFT-LCDs) and other flat panel displays to original equipment manufacturing service providers. Market cap at $4.42B, most recent closing price at $4.50.

The EPS estimate for the company's current year increased from 0.26 to 0.33 over the last 30 days, an increase of 26.92%.

This increase came during a time when the stock price changed by 6.9% (from 4.2 to 4.49 over the last 30 days).

5. Park Electrochemical Corp. ( PKE , Earnings , Analysts , Financials ): Develops, manufactures, markets, and sells high-technology digital and radio frequency ( RF )/microwave printed circuit materials products principally for the telecommunications, Internet infrastructure, and high-end computing markets, as well as advanced composite materials products, parts, and assemblies primarily for the aerospace markets. Market cap at $590.23M, most recent closing price at $28.20.

The EPS estimate for the company's current year increased from 1.43 to 1.53 over the last 30 days, an increase of 6.99%.

This increase came during a time when the stock price changed by -8.34% (from 30.59 to 28.04 over the last 30 days).

(List compiled by James Dennin. Monthly returns sourced from Zacks Investment Research, all other data sourced from Finviz.)

Kapitall Wire is a division of New Kapitall Holdings, LLC. Kapitall Generation, LLC is a wholly owned subsidiary of New Kapitall Holdings, LLC. Kapitall Wire offers free investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by New Kapitall Holdings, LLC, and its affiliate companies.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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