Why Many Semiconductor Stocks Were Down Last Week
Despite the continuous chip shortage, 2022 has not been a great year for the semiconductor industry. Today's video focuses on popular stocks like Nvidia (NASDAQ: NVDA), Taiwan Semiconductor (NYSE: TSM), Intel (NASDAQ: INTC), and Qualcomm (NASDAQ: QCOM), which are all down over 20% year to date due to downgrades and the increased risk of consumer spending decreasing. Still, there is some good news: TSM issued its monthly report, and it continues to show strong growth. Here are some highlights from the video.
- The semiconductor industry continues to get hit due to the increased risk of consumer spending slowing down. The risk has now started a wave of analysts downgrading or lowering price targets for numerous companies. On April 8, an analyst from Truist Securities reduced Nvidia's price target due to the fear of a slowdown in the second quarter of 2022, but the analyst still believes in strong growth for the second half of the year.
- TSM announced its March 2022 monthly revenue report and saw a 33% year-over-year (YOY) revenue growth. This is following a strong February, for which it reported 38% YOY revenue growth. From TSM's side, it seems that there is not much slowdown at the moment.
- It is important to remember that semiconductor companies like Nvidia and Intel provide solutions not only to consumers but also to data center providers, the automotive market, enterprises, and much more. As one market slows down, it is possible that other markets are growing.
Click the video below for my full thoughts and analysis.
*Stock prices used are from April 8, 2022. The video was published on April 8, 2022. 10 stocks we like better than Nvidia They just revealed what they believe are the ten best stocks for investors to buy right now... and Nvidia wasn't one of them! That's right -- they think these 10 stocks are even better buys. *Stock Advisor returns as of April 7, 2022
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Jose Najarro owns Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool owns and recommends Intel, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel and short January 2023 $57.50 puts on Intel. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
