Últimas noticias sobre VanEck Semiconductor ETF (NASDAQ:SMH)

VanEck Semiconductor ETF

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The Fund normally invests at least 80 percent of its total assets in securities that comprise the Funds benchmark index. The Semiconductor Index includes common stocks and depositary receipts of U.S. exchange-listed companies in the semiconductor industry. Such companies may include medium-capitalization companies and foreign companies that are listed on a U.S. exchange. To be initially eligible for the Semiconductor Index, companies must generate at least 50 percent of their revenues from semiconductors. Semiconductors include companies engaged primarily in the production of semiconductors and semiconductor equipment. Of the largest 50 stocks in the semiconductor industry by full market capitalization, the top 25 by free-float market capitalization (i.e., includes only shares that are readily available for trading in the market) and three month average daily trading volume are included in the Semiconductor Index. 

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Nvidia presenta sólidos resultados en el 2T, pero sus acciones caen. Descubre por qué esto podría ser una oportunidad para Micron.

¿Qué está pasando con las acciones de Micron (MU) el jueves?

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Los ETFs vinculados a acciones de semiconductores (SOXL, NVDL y más) caen drásticamente en la negociación pre-market del lunes.

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The quarterly performance of Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), and Micron Technology, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) adequately reflects that the <a target="_blank" href="https://www.benzinga.com/news/earnings/24/09/41046485/whats-going-on-with-nvidia-braodcom-intel-and-other-chip-stocks-on-thursday" rel="noreferrer noopener">artificial intelligence wave</a> is in no mood to slow down in the near term.
Hyperscalers, including Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Google parent Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) and Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) remain aggressively invested in their artificial intelligence ambitions. The U.S. and China&#8217;s key rate cuts also added an additional tailwind for the capital-intensive industry.
Microsoft committed 14.7 billion Reais ($2.70 billion) over three years to Brazil&#8217;s cloud and artificial intelligence (AI) infrastructure, according to a Reuters report.
Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/41055252/microns-ai-driven-hbm-demand-and-data-center-growth-to-fuel-stock-upside-analysts-s" rel="noreferrer noopener">Micron&#8217;s AI-Driven HBM Demand and Data Center Growth to Fuel Stock Upside, Analysts Say</a>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/27051414/newplot-23.png" alt="" class="wp-image-569372" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/27051414/newplot-23.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/27051414/newplot-23-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
The company&#8217;s ConectAI program will train 5 million people with AI skills over the next three years. Microsoft already has two Azure regions: one in São Paulo state, which it launched in 2014, and another in Rio de Janeiro, which it launched in 2020.
Earlier this week, Microsoft <a target="_blank" href="https://www.benzinga.com/government/24/09/41020845/microsoft-invests-1-3b-to-boost-ai-skills-and-infrastructure-in-mexico" rel="noreferrer noopener">earmarked $1.3 billion</a> over the next three years to drive Mexico&#8217;s AI infrastructure and initiatives, including training 5 million people. Microsoft also collaborated with BlackRock, Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>) and other partners, forging a fresh $30 billion investment fund to <a target="_blank" href="https://www.benzinga.com/news/24/09/40909973/blackrock-microsoft-others-team-up-for-30b-artificial-intelligence-fund-help-us-fuel-ai-innovation-a" rel="noreferrer noopener">tap the AI wave</a>.
Google is eyeing a $3.3 billion investment in South Carolina to build two new data centers. The search engine giant&#8217;s plans included two new data center campuses in Dorchester County and expanding its existing data center campus in Berkeley County, Reuters cites the South Carolina governor&#8217;s office as saying.
Alphabet committed $2 billion to the Dorchester County facilities, potentially creating 200 new operational jobs. According to Reuters, the company also earmarked $1.3 billion for Berkeley County.
Another positive update for the industry is the <a target="_blank" href="https://www.ft.com/content/ff0ca77d-ad35-45ba-a493-201a26932efb" rel="noreferrer noopener">report</a> indicating struggling chipmaker Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) and the U.S. government are trying to finalize the $8.5 billion in direct funding for the chipmaker before the end of the year.
Therefore, Intel&#8217;s exploration of stake sales to companies like Qualcomm Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>) could also disrupt its chances of bagging the subsidy over antitrust grounds. Intel had already faced <a target="_blank" href="https://www.benzinga.com/m-a/24/08/40648165/intel-weighs-major-business-split-factory-delays-amid-strategic-review-report" rel="noreferrer noopener">Senator scrutiny over</a> its cost-cutting measures as the subsidy aims to create additional U.S. jobs.
Semiconductor ETFs VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) gained 5%-6% in the last 5 days.
Price Actions: INTC stock is up 1.21% to $24.21 premarket at last check on Friday.
Also Read:
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<li><a href="https://www.benzinga.com/news/24/09/41054106/meta-analysts-highlight-ai-vr-advances-see-growth-pushing-it-toward-apple-like-valuation" target="_blank" rel="noreferrer noopener">Meta Analysts Highlight AI, VR Advances, See Growth Pushing It Toward Apple-Like Valuation</a></li>
</ul>
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Microsoft, Google, Meta Pave Path to AI Expansion, Nvidia and Broadcom Set to Reap Benefits

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Benzinga Market Summary: Indexes Close Higher On Strength In Semis, Supermicro Falls On Reports Of Justice Department Probe, Oil Falls On Reports Of Potential Saudi Output

On Wednesday, Synopsys, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNPS#NASDAQ">SNPS</a>) <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/n41033101/synopsys-and-tsmc-pave-the-path-for-trillion-transistor-ai-and-multi-die-chip-design" rel="noreferrer noopener">announced its continued</a> collaboration with Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) to deliver advanced EDA and IP solutions on the contract chipmaker&#8217;s most advanced process and 3DFabric technologies, accelerating innovation for AI and multi-die designs.
&#8220;Synopsys&#8217; certified Custom Compiler and PrimeSim solutions provide the performance and productivity gains that enable our designers to meet the silicon demands of high-performance analog design on the Taiwan Semiconductor N2 process,&#8221; said&nbsp;Ching San Wu, Corporate VP at MediaTek.
In addition, Synopsys is collaborating with Taiwan Semiconductor on the new backside routing capabilities.
Also Read: <a target="_blank" href="https://www.benzinga.com/government/24/09/41007184/taiwan-semi-secures-7-5b-boost-for-arizona-expansion-aims-for-advanced-chip-production-report" rel="noreferrer noopener">Taiwan Semi Secures $7.5B Boost for Arizona Expansion, Aims for Advanced Chip Production: Report</a>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/26082010/newplot-22.png" alt="" class="wp-image-567584" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/26082010/newplot-22.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/26082010/newplot-22-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
The electronic design automation company supports the contract chipmaker&#8217;s A16 process in the Synopsys digital design flow to address power distribution and signal routing for design performance efficiency and density optimization.&nbsp;
&#8220;Our collaboration with&nbsp;Synopsys and Taiwan Semiconductor exemplifies our collective commitment to driving innovation and enabling the future of AI and multi-die chip design,&#8221; said&nbsp;John Lee, vice president and general manager of the semiconductor, electronics, and optics business at Ansys Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ANSS#NASDAQ">ANSS</a>).
Ansys and Taiwan Semiconductor recently collaborated with Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) to speed up <a target="_blank" href="https://www.benzinga.com/news/24/09/41008834/ansys-taiwan-semiconductor-microsoft-team-up-to-supercharge-next-gen-chip-simulations" rel="noreferrer noopener">photonic chip simulations</a>.
Semiconductor stocks, including Synopsys and Taiwan Semiconductor stocks, are trading upwards Thursday in solidarity with Micron Technology, Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) <a target="_blank" href="https://www.benzinga.com/news/earnings/24/09/41034733/micron-q4-earnings-revenue-eps-beat-on-robust-ai-demand-company-sees-significantly-improved-profita" rel="noreferrer noopener">upbeat quarterly print</a>.
The <a target="_blank" href="https://www.benzinga.com/government/24/09/40938590/whats-going-on-with-ai-related-stocks-nvidia-amd-broadcom-and-super-micro-on-thursday" rel="noreferrer noopener">semiconductor industry is</a> riding high on the AI wave, and the U.S. Fed rate cuts are providing an additional tailwind for the sector.
Investors can gain exposure to the semiconductor sector through VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Actions: At the last check on Thursday, SNPS stock was up 0.90% at $514.95, and TSM stock was up 1.99% at $185.99.

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Synopsys Partners With Taiwan Semi To Power Next-Gen AI Chip Innovations

Wednesday, Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) promoted Rose Castanares, executive vice president of the Arizona unit, as president.
Castanares, who joined the Taiwanese contract chipmaker in 1998, will take over Brian Harrison on October 1, who will retire on December 31, the Taipei Times <a target="_blank" href="https://www.taipeitimes.com/News/biz/archives/2024/09/19/2003823993" rel="noreferrer noopener">cites</a> in a company statement.
TSM stock is trading higher on Thursday as the U.S. Federal Reserve <a target="_blank" href="https://in.benzinga.com/markets/equities/24/09/40932103/it-stocks-on-the-rise-after-u-s-fed-cuts-interest-rate" rel="noreferrer noopener">slashed its benchmark</a> interest rate by 50 basis points, setting the interest rate at 4.75%-5% to&nbsp;spur demand for discretionary spending from U.S. companies.
Also Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40904754/amazons-leaner-structure-and-ai-chip-partnership-with-intel-could-boost-growth-bofa" rel="noreferrer noopener">Amazon&#8217;s Leaner Structure and AI Chip Partnership with Intel Could Boost Growth: BofA Analyst</a>
The <a target="_blank" href="https://www.benzinga.com/government/24/04/38249052/samsung-secures-6-4b-from-us-for-texas-chip-factory-after-nvidia-supplier-tsmcs-breakthrough" rel="noreferrer noopener">contract chipmaker recently raised</a> its U.S. investment by more than 60% to $65 billion, as the country granted a $6.6 billion federal grant and provided $5 billion in loans.
TSMC is a key artificial intelligence chip supplier for Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and is building two advanced fabs in Arizona, leveraging the 4nm, 3nm, and 2nm processes.
It is also eyeing a third fab in Arizona, leveraging the 2nm process. Earlier this year, the company won approval to infuse $7.5 billion in the Arizona unit, reflecting its conviction in the <a target="_blank" href="https://www.benzinga.com/news/24/09/40928754/what-has-taiwan-semiconductor-stock-done-since-nvidia-earnings" rel="noreferrer noopener">artificial intelligence frenzy</a>, which it also voiced at the Semicon Taiwan industry forum in Taipei.
Recent reports also indicated Taiwan Semiconductor bagging at least two smartphone chip deals concerning Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google, and Apple. Samsung Electronics (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) Samsung Foundry recently lost out on the Pixel 10 and Pixel 11 chip deals to Taiwan Semiconductor&#8217;s chipmaking technology.
A separate report indicated that Taiwan Semiconductor has started making Apple&#8217;s iPhone chip A16 SoC at the Arizona unit, leveraging its 5nm N4 technology.
Taiwan Semiconductor stock has risen 90% in the last 12 months. Investors can gain exposure to semiconductor stocks through&nbsp;the VanEck Semiconductor ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and&nbsp;the&nbsp;iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Price Action:&nbsp;TSM stock is up 3.88% at $173.78 at the last check on Thursday.
Also Read:
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<li><a href="https://www.benzinga.com/m-a/24/09/40926078/nvidia-considers-165m-octoai-acquisition-aims-to-strengthen-ai-and-cloud-dominance" target="_blank" rel="noreferrer noopener">Nvidia Considers $165M OctoAI Acquisition, Aims to Strengthen AI and Cloud Dominance</a></li>
</ul>
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What's Going On With Taiwan Semiconductor Stock On Thursday?

Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) stock lost 4% in the last 30 days. Last month saw volatility as Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) released its quarterly print and more.
The VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>), representing the semiconductor industry, have lost ~7% in the last 30 days. Now, let&#8217;s run down the events for Taiwan Semiconductor since Nvidia released its quarterly print.
On August 28, Nvidia reported <a target="_blank" href="https://www.benzinga.com/trading-ideas/24/08/40652614/nvidia-shatters-revenue-records-with-a-staggering-30-billion-quarter-yet-sees-stock-prices-slide-se" rel="noreferrer noopener">second-quarter topline</a> growth of 122% to $30.04 billion, quashing the&nbsp;analyst consensus of $28.68 billion.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/18135430/newplot-14.png" alt="" class="wp-image-554700" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/18135430/newplot-14.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/18135430/newplot-14-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/40897994/whats-going-on-with-intel-stock-on-tuesday" rel="noreferrer noopener">Intel Looks To Restructure Foundry Business, Bags Major US Deal and Government Grants</a>
The company projected third-quarter revenue of $31.85 billion—$33.15 billion, versus the consensus of $31.77 billion.
Still, the stock dropped by <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40614118/nvidia-leads-semiconductor-stocks-lower-following-q2-earnings-what-investors-need-to-know" rel="noreferrer noopener">6% in after-hours trading</a>, sending semiconductor stocks, including Taiwan Semiconductor, Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), and Super Micro Computer, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>), down as the print failed to impress the Street.
The semiconductor sector selloff <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40684198/nvidia-tsmc-lead-chip-stocks-lower-in-premarket-whats-going-on" rel="noreferrer noopener">continued in September</a>, with U.S.-China geopolitical tensions intensifying due to the Western counterpart&#8217;s artificial intelligence technology embargo on the Asian counterpart.
Meanwhile, Taiwan Semiconductor remained invested in solidifying its moat by <a target="_blank" href="https://www.benzinga.com/news/24/09/40686890/apple-nvidia-key-supplier-tsmc-leads-taiwanese-chip-giants-to-localize-neon-gas-production-by-2025" rel="noreferrer noopener">localizing neon gas production</a>, a key chipmaking material disrupted by the Ukraine war, and fast-tracking the development of silicon photonics to address the energy and data transmission speeds <a target="_blank" href="https://www.benzinga.com/news/24/09/40687807/whats-going-on-with-taiwan-semiconductor-stock-on-tuesday" rel="noreferrer noopener">needed by AI computing</a>.
Taiwan Semiconductor <a target="_blank" href="https://www.benzinga.com/news/24/09/40711613/taiwan-semiconductor-bets-on-ai-growth-surge-samsung-joins-ai-optimism-in-trade-show" rel="noreferrer noopener">projected a 50%</a> growth in AI accelerators at the Semicon Taiwan industry forum in Taipei despite concerns over the sustainability of the AI frenzy, which is sending jitters across the market. Broadcom Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) quarterly print and guidance did little to contain <a target="_blank" href="https://www.benzinga.com/news/24/09/40754938/semiconductor-etfs-take-a-beating-dragged-lower-by-nvidia-amd-and-broadcom-stocks" rel="noreferrer noopener">the semiconductor selloff</a>.
On the brighter side, reports indicated that the contract chipmaker&#8217;s production yield at the Arizona facility is at par with<a target="_blank" href="https://www.benzinga.com/government/24/09/40773084/taiwan-semiconductors-us-plant-matches-taiwan-production-yields-stock-gains" rel="noreferrer noopener"> its Taiwan facilities</a>.
Taiwan Semiconductor reported <a target="_blank" href="https://www.benzinga.com/news/24/09/40790997/taiwan-semiconductors-strong-august-sales-hint-at-big-gains-ahead-ai-and-iphone-demand-fuel-optimism" rel="noreferrer noopener">33% topline growth</a> in&nbsp;August 2024, testimony to the smartphone market recovery and continued demand for&nbsp;Nvidia AI chips. Analysts expect third-quarter revenue growth of 37%.
Some of Taiwan Semiconductors key September wins included a Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google smartphone deal&nbsp;involving <a target="_blank" href="https://www.benzinga.com/news/24/09/40833611/google-picks-taiwan-semiconductor-for-pixel-chips-samsung-loses-key-deal-report" rel="noreferrer noopener">Pixel 10 and Pixel 11 chips</a> and Apple Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) A16 chip at <a target="_blank" href="https://www.benzinga.com/news/24/09/40920976/taiwan-semiconductor-begins-production-of-apple-a16-smartphone-chips-at-arizona-facility-report" rel="noreferrer noopener">its Arizona Fab</a>.
Taiwan Semiconductor is up over 90% in the last 12 months as it led the&nbsp;global foundry market, commanding a 62% share in the <a target="_blank" href="https://www.benzinga.com/news/24/09/40711613/taiwan-semiconductor-bets-on-ai-growth-surge-samsung-joins-ai-optimism-in-trade-show" rel="noreferrer noopener">second quarter of 2024</a>.
Price Action: TSM stock closed at $167.28 on Wednesday.
Image via Shutterstock

What has Taiwan Semiconductor Stock Done Since Nvidia Earnings?

The Federal Reserve is widely anticipated to cut interest rates at its upcoming Federal Open Market Committee meeting, with the decision set for release on Wednesday <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40878710/investors-bet-on-50-basis-point-rate-cut-wall-street-analysts-urge-caution-this-is-">at 2 p.m. ET.</a>
The central bank has maintained the federal funds rate at 5.25%-5.5% since September 2023 and this week&#8217;s rate reduction would be the first since March 2020, signaling a marked shift from the restrictive monetary policy stance implemented to combat soaring inflation.
<h3 class="wp-block-heading">Rate Cut Expectations: Will The Fed Opt For 25 Or 50 Basis Points?</h3>
The key question on everyone&#8217;s mind is the magnitude of the rate cut. Will the Fed opt for a cautious 25-basis-point reduction, or will it make a bolder move with a 50-basis-point cut, as seen at the start of previous rate-cutting cycles?
Market sentiment currently differs from Wall Street economist consensus. Traders are pricing in a 63% probability of a 50-basis-point cut, as per the CME FedWatch tool.
Among Wall Street analysts, instead, there is an overwhelming consensus on a more conservative 25-basis-point reduction, but JPMorgan Chase &amp; Co. stands out as the notable exception, forecasting a 50-basis-point cut.
According to the biggest U.S. bank, interest rates are about 150 basis points above neutral levels. Therefore, a 25-basis-point cut per meeting would take almost a year to align the policy back to a neutral stance. 
This strengthens the case for frontloading rate cuts at the start of the cycle, particularly given that, in hindsight, a July commencement might have been more appropriate.
Regardless of whether the Fed chooses a 25 or 50-basis-point reduction, analysts expect a series of cuts to continue through 2024 and 2025.
<h3 class="wp-block-heading">Investor Moves Ahead of the Rate Cut: Top 10 ETFs Investors Bought Last Week</h3>
In the week leading up to this highly anticipated rate cut, investors reshuffled their portfolios, resulting in significant inflows into various exchange-traded funds (ETFs) that may indicate a strategic tilt toward assets poised to benefit from a lower interest rate environment.
To identify these trends, Benzinga analyzed data from VettaFi&#8217;s etfdb.com, and found that investors displayed a strong preference for value-oriented ETFs. 
Notable among these were the iShares MSCI EAFE Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EFV#NYSE">EFV</a>) and SPDR Portfolio S&amp;P 500 Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPYV#NYSE">SPYV</a>), signaling a tilt towards assets that may offer stability and a defensive hedge as the macro regime shifts.
As a traditional beneficiary of lower interest rates, gold has also been on investors&#8217; radar, with prices repeatedly hitting record highs over the last week, supported by strong inflows into the SPDR Gold Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>). 
Also worth noting is the interest in the tech sector, particularly semiconductors, with the VanEck Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NYSE">SMH</a>) seeing substantial inflows.
Additionally, investors pursued speculative and leveraged strategies on the Nasdaq 100, likely interpreted as a bet to the rising chance of a larger 50-basis-point cut. 
Investors bought into both ProShares Ultra QQQ (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QLD#NYSE">QLD</a>), which aims to deliver twice the daily performance of the Nasdaq 100, and the ProShares UltraPro QQQ (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TQQQ#NYSE">TQQQ</a>), which targets three times the daily performance of the index.
Rounding out the list, the popular small-cap fund iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) attracted over half a billion dollars in inflows last week, signaling investors&#8217; growing interest in smaller, domestically-focused companies as they are poised to benefit from declining borrowing costs.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF Name</th>
<th>1 Week Inflows ($MM)</th>
</tr>
</thead>
<tbody>
<tr>
<td>iShares MSCI EAFE Value ETF</td>
<td>$1,135.48</td>
</tr>
<tr>
<td>SPDR Portfolio S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPLG#NYSE">SPLG</a>)</td>
<td>$820.85</td>
</tr>
<tr>
<td>Vanguard Intermediate-Term Corporate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCIT#NYSE">VCIT</a>)</td>
<td>$818.30</td>
</tr>
<tr>
<td>SPDR Portfolio S&amp;P 500 Value ETF</td>
<td>$775.06</td>
</tr>
<tr>
<td>VanEck Semiconductor ETF</td>
<td>$717.11</td>
</tr>
<tr>
<td>Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)</td>
<td>$698.27</td>
</tr>
<tr>
<td>SPDR Gold Shares</td>
<td>$648.41</td>
</tr>
<tr>
<td>ProShares Ultra QQQ</td>
<td>$646.66</td>
</tr>
<tr>
<td>ProShares UltraPro QQQ</td>
<td>$560.15</td>
</tr>
<tr>
<td>iShares Russell 2000 ETF </td>
<td>$552.24</td>
</tr>
</tbody>
</table>
</figure>
Read now: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40903154/13-etfs-to-own-as-fed-set-to-cut-rates-analysts-highlight-utilities-real-estate-and">13 ETFs To Own As Fed Set To Cut Rates: Analysts Highlight Utilities, Real Estate, And More</a></li>
</ul>
Image created using artificial intelligence via Midjourney.

Bonds

Broad U.S. Equity ETFs

Econ #s

Federal Reserve

SPLG

SPYV

TQQQ

VCIT

10 ETFs Investors Secretly Bought Before The Fed's Make-Or-Break Interest Rate Call

On CNBC's <a href="https://www.cnbc.com/video/2024/09/16/final-trades-transdigm-bjs-wholesale-abbvie-and-the-smh.html">&#8220;Halftime Report Final Trades</a>,&#8221; Stephen L. Weiss of Short Hills Capital Partners recommended buying TransDigm Group Incorporated (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDG#NYSE">TDG</a>).
On Aug. 6, TransDigm Group reported better-than-expected third-quarter financial results and raised its FY24 guidance above estimates.
Jason Snipe of Odyssey Capital Advisors said BJ&#8217;s Wholesale Club Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BJ#NYSE">BJ</a>) beat on the bottom line.
On Aug. 22, BJ&#8217;s Wholesale reported better-than-expected second-quarter financial results. Revenue growth of 4.9% Y/Y to $5.205 billion, beating the analyst consensus estimate of $5.145 billion. Total comparable club sales increased by 3.1%. Comparable club sales, excluding gasoline sales, increased by 2.4%.
Don't forget to check out our <a href="https://www.benzinga.com/premarket/">premarket coverage here</a>
Anastasia Amoroso of iCapital picked VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>), saying semiconductor space is down 17%, so it's a good place to add.
Joe Terranova of Virtus Investment Partners named AbbVie Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABBV#NYSE">ABBV</a>) as his final trade.
On Sept. 10, AbbVie&#8217;s CONSTELLA received Health Canada approval for treating childhood constipation. &#8220;Constipation is a common issue in childhood that can significantly impact a child&#8217;s quality of life and cause considerable stress for their families. These children and families will be grateful to have a new prescription treatment option that can offer symptom relief and improve the overall well-being of the child and family, making daily life more manageable,&#8221; said Dr. Melanie Schmidt, Division of Paediatric Gastroenterology and Hepatology at Children&#8217;s Hospital in London, Ontario.
Price Action:
<ul>
<li>TransDigm gained 0.4% to close at $1,372.92 during Monday's session.</li>
<li>BJ&#8217;s Wholesale shares fell 1.1% to settle at $80.57 on Monday.</li>
<li>VanEck Semiconductor ETF fell 1.3% during Monday's session.</li>
<li>AbbVie shares gained 0.8% to settle at $195.73 during Monday's session.</li>
</ul>
Check This Out: 
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/24/09/40877520/if-you-want-steel-you-do-nucor-says-cramer-when-asked-about-gerdau">&#8216;If You Want Steel, You Do Nucor,&#8217; Says Cramer When Asked About Gerdau</a></li>
</ul>
Image generated using artificial intelligence via Midjourney.

Long Ideas

Trading Ideas

ABBV

TransDigm, BJ's Wholesale, AbbVie And More On CNBC's 'Final Trades'

Analyst Ratings

CNBC Halftime Report Final Trades: Taiwan Semiconductor Manufacturing, AbbVie, BJ's Wholesale Club Holdings, VanEck Semiconductor ETF

To gain an edge, this is what you need to know today.
<figure class="wp-block-image size-large is-resized"><img decoding="async" src="https://thearorareport.com/wp-content/uploads/2024/09/2024-09-10_07h59_51.png" alt="" style="width:624px" /></figure>
<h3 class="wp-block-heading">Major Negative Pattern Developing</h3>
Please <a href="https://thearorareport.com/chart-analysis-stock-market-semiconductors-apple-loses-fight-smh-mc-09102024">click here</a> for an enlarged chart of VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>).
Note the following:
<ul>
<li>A large number of stocks benefiting from artificial intelligence are semiconductor stocks.&nbsp; Examples are NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), Micron Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>), Arm Holdings PLC &#8211; ADR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>), and Applied Materials, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMAT#NASDAQ">AMAT</a>).</li>
<li>The chart shows that a heads and shoulders pattern is developing in semiconductor ETF SMH.&nbsp; The chart shows the left shoulder, the head, and the developing right shoulder.</li>
<li>The chart shows the neckline.</li>
<li>The pattern will be complete only if the neckline is broken.&nbsp; If the neckline is not broken, the developing pattern will be negated.</li>
<li>The foregoing is a heads up for those who are buying AI and semiconductor stocks and ETFs that are now falling in the buy zones.&nbsp; In practical terms, there is no change in the guidance given in the Afternoon Capsule on September 6.</li>
<li>The head and shoulders pattern works about 70% of the time.</li>
<li>RSI on the chart shows that semiconductors are oversold.&nbsp; Oversold stocks and ETFs tend to bounce.</li>
<li>Yesterday, Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) introduced the iPhone16.&nbsp; At The Arora Report, we paid careful attention to the event. There is no change to the analysis The Arora Report provided you in advance of the event.</li>
<li>In yesterday's Morning Capsule, we wrote:</li>
</ul>
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">Apple is clearly anxious about today&#8217;s event, as demonstrated by the fact that this event is taking place on a Monday, whereas Apple generally does not hold major events on Mondays.&nbsp; Apple is trying to get ahead of a potential European Commission decision on Apple being forced to pay $14B in taxes.
</blockquote>
<ul>
<li>Apple's anxiety was justified.&nbsp; Apple has lost the $14B tax fight.&nbsp; Apple's loss means that going forward Apple will have a higher tax burden in Europe.</li>
<li>CPI data will be released tomorrow at 8:30am ET.&nbsp; Here are the expectations:
<ul>
<li>Headline consensus is 0.2%.</li>
<li>Core consensus is 0.2%.</li>
</ul>
</li>
<li>The market is positioned for CPI to be benign.&nbsp; If CPI is much hotter than expected, due to market positioning, significant downside is probable.&nbsp; Positioning is an important Wall Street mechanic.&nbsp; Understanding Wall Street mechanics gives investors several big edges.&nbsp; Due to their high value, Wall Street professionals keep the details of Wall Street mechanics close to their chest.</li>
<li>Sentiment has quickly turned very positive.</li>
<li>There are crosscurrents in the markets based on buying and selling by those who are driven by partisan politics ahead of the presidential debate between Harris and Trump.</li>
</ul>
<h3 class="wp-block-heading">Magnificent Seven Money Flows</h3>
In the early trade, money flows are positive in Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Alphabet Inc Class C (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), NVDA, and Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>).
In the early trade, money flows are negative in AAPL.
In the early trade, money flows are mixed in SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>).
<h3 class="wp-block-heading">Momo Crowd And Smart Money In Stocks</h3>
Investors can gain an edge by knowing money flows in SPY and QQQ.  Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.  The most popular ETF for gold is SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>).  The most popular ETF for silver is iShares Silver Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLV#NYSE">SLV</a>).  The most popular ETF for oil is United States Oil ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>).
<h3 class="wp-block-heading">Bitcoin</h3>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is range bound.
<h3 class="wp-block-heading">Protection Band And What To Do Now</h3>
It is important for investors to look ahead and not in the rearview mirror.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp; The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp; If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.&nbsp; A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp; When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h3 class="wp-block-heading">Traditional 60/40 Portfolio</h3>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.&nbsp; Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter-benzinga">Generate Wealth Newsletter</a>.

$BTC

AMAT

TSLA

This Chart Before Buying AI Stocks, Apple Loses $14B Fight

Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) is shifting its focus to the gaming GPU market, prioritizing a strategy to gain a larger market share. 
This approach marks a significant shift away from competing directly with Nvidia Corp&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) highest-end gaming GPUs, at least for now, Tom&#8217;s Hardware <a href="https://www.tomshardware.com/pc-components/gpus/amd-deprioritizing-flagship-gaming-gpus-jack-hyunh-talks-new-strategy-for-gaming-market" target="_blank" rel="noreferrer noopener">cites</a> Jack Huynh, AMD&#8217;s Senior Vice President and General Manager.
In an interview during IFA 2024, Huynh emphasized that AMD aims to capture 40%-50% of the total addressable market by focusing on mainstream and mid-range GPUs.
Nvidia currently holds 88% of the discrete GPU market, leaving AMD with just 12%, compelling the latter to focus on building scale.
AMD remains engaged in many activities to boost shareholder value as analysts continue to claim Nvidia as the key AI beneficiary.
Recently, AMD tapped Nvidia&#8217;s Keith Strier, <a target="_blank" href="https://www.benzinga.com/news/24/09/40707618/whats-going-on-with-amd-stock-on-wednesday" rel="noreferrer noopener">who was responsible</a> for boosting Nvidia&#8217;s commercial engagements with foreign governments. AMD also shared <a target="_blank" href="https://www.benzinga.com/news/24/09/40707618/whats-going-on-with-amd-stock-on-wednesday" rel="noreferrer noopener">plans to snap</a> AI server company&nbsp;ZT Systems&nbsp;for $4.9 billion as its Ryzen 9000 series failed to gain traction.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/09090425/newplot-5.png" alt="" class="wp-image-537426" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/09090425/newplot-5.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/09090425/newplot-5-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
AMD has been up 28% in the last 12 months versus Nvidia, which has gained 128%.
Semiconductor and AI-linked stocks, including Nvidia and AMD, faced a continued selloff despite strong quarterly results from Nvidia and Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>). VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) dropped over 12% in the past five days.
Price Actions: AMD stock is up 1.37% at $136.20 at the last check on Monday. NVDA is up 1.22% at $104.05.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

AMD vs. Nvidia: AMD's Surprising Strategy Shift in Gaming GPU Battle

Semiconductor, hardware, and artificial intelligence-linked stocks led by Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) are down as the sector continues to pull back.
AI stocks led by Nvidia, Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), and Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) selloff continue their <a target="_blank" href="https://www.benzinga.com/markets/equities/24/09/40746353/nvidia-super-micro-arm-tumble-2-in-premarket-most-chip-peers-deep-in-red-whats-dragging-down-sem" rel="noreferrer noopener">downward price trajectory</a> as the Nvidia and Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) quarterly prints failed to impress the Street.
Broadcom released its third-quarter earnings on Thursday. The <a target="_blank" href="https://www.benzinga.com/news/earnings/24/09/40741225/broadcom-q3-earnings-revenue-beat-eps-beat-continued-strength-in-ai-solutions-and-vmware-2024-ai-gu" rel="noreferrer noopener">topline grew 42%</a> to &nbsp;$13.07 billion in the third quarter, topping the analyst estimate of $12.96 billion. The chipmaker expects fourth-quarter revenue of $14 billion, above the analyst consensus of $12.70 billion. The <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/n40740457/broadcom-inc-announces-third-quarter-fiscal-year-2024-financial-results-and-quarterly-dividend" rel="noreferrer noopener">adjusted gross margin</a> grew by 110 bps sequentially and 230 bps year-on-year to 77.4%.
JPMorgan analyst Harlan Sur projected upside, citing robust AI growth, VMware momentum, and recovery in <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40750949/broadcom-analysts-lifts-ai-revenue-forecast-to-12b-on-potential-strong-demand-from-" rel="noreferrer noopener">traditional semiconductor sectors</a>.
Last week, Nvidia&#8217;s <a target="_blank" href="https://www.benzinga.com/news/earnings/24/08/40613050/nvidia-q2-earnings-guidance-top-street-view-as-ai-fuels-record-data-center-revenue-gross-margin-fal" rel="noreferrer noopener">second-quarter topline</a> grew 122% to $30.04 billion, surpassing the analyst estimate of $28.68 billion. It expects third-quarter revenue of $31.85 billion-$33.15 billion versus the analyst consensus of $31.77 billion. The adjusted gross margin declined 320 bps sequentially and grew by 450 bps year-on-year.
BofA Securities analyst Vivek Arya maintained a bullish outlook backed by data center and AI training demand and <a target="_blank" href="https://www.benzinga.com/news/24/09/40737481/nvidias-future-tied-to-llms-and-gaming-despite-ai-capex-skepticism-remains-a-sector-favorite-analyst" rel="noreferrer noopener">supply chain recovery</a>.
VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>), which tracks the overall performance of the 25 largest U.S.-listed companies that produce semiconductors, including Nvidia, Taiwan Semiconductor, Broadcom, and AMD, has been down 12% in the last five days. iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) fell 12% in the previous five days.
Nvidia has been down 15% in the last five days. AMD lost over 10%, and Taiwan Semiconductor lost 8%. The selloff refused to subside despite assurances from <a target="_blank" href="https://www.benzinga.com/news/24/09/40735058/taiwan-semis-supplier-dismisses-selloff-projects-strong-ai-growth-surge" rel="noreferrer noopener">contract chipmakers like</a> Taiwan Semiconductor and Samsung Electronics (OTC:<a class="ticker" href="https://www.benzinga.com/stock/SSNLF#OTC">SSNLF</a>) regarding sustained AI demand.
ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>), which corresponds to two times (2x) the daily performance of the Dow Jones U.S. Semiconductors&nbsp;Index, lost 26% in the last five days.
ETFs with exposure to riskier indexes noted volatility during the period. ProShares UltraShort Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SSG#NYSE">SSG</a>), which corresponds to two times the inverse (-2x) of the daily performance of the Dow Jones U.S. Semiconductors Index, gained 28% in the last five days.
The ETFs tracking broader indexes like the S&amp;P 500 and NASDAQ saw relatively lesser value losses due to Big Tech stocks like Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>).
SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which tracks the S&amp;P 500 stock market index, including Big Tech stocks, lost 3.5% in the last five days. Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which tracks the NASDAQ index, lost 5% in the last five days.
Photo via Shutterstock

Specialty ETFs

FTXL

PowerShares Exchange-Traded Fund Trust Dynamic Semiconductor Portfolio

SOXQ

Semiconductor ETFs Take A Beating, Dragged Lower By Nvidia, AMD, and Broadcom Stocks

Following Tuesday's bloodbath in the U.S. semiconductor sector, there seems to be no relief in sight as Swiss investment bank UBS downgraded ASML Holding NV (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) from Buy to Neutral Wednesday, slashing its price target on the Dutch chipmaker due to expected slower earnings growth <a href="https://www.benzinga.com/topic/semiconductors">in the coming years</a>.
Despite ASML being recognized as one of Europe&#8217;s top technology companies, UBS analysts led by Francois-Xavier Bouvignies said "investors will likely be less willing to pay the premium multiple that the Dutch chipmaker has commanded over the last few years."
UBS first rated ASML as a Buy in August 2022 and maintained it until now. In April 2024, the bank raised the 12-month price target for the company from 880 euros ($972.87) to 1,050 euros. On Wednesday, UBS lowered the price target to 900 euros. The downgrade comes as UBS anticipates weaker earnings growth driven by a slowdown in demand for advanced semiconductor chips.
Shares of ASML dropped 6.1% in Amsterdam trading, while U.S.-listed ADRs were 4.4% lower during premarket trading in New York.
Related Link: <a href="https://www.benzinga.com/markets/asia/24/08/40638552/asmls-china-business-in-crosshairs-of-dutch-government-semiconductors-at-center-of-east-west-tension">ASML&#8217;s China Business In Crosshairs Of Dutch Government: Semiconductors At Center Of East-West Tensions</a>
<h3 class="wp-block-heading">Slower Growth Ahead For ASML?</h3>
UBS forecasts that ASML's earnings per share will grow at a compound annual growth rate of 13% between 2025 and 2030, down significantly from the 24% CAGR seen from 2018 to 2025, as Proactive Investors reported.
While the bank predicts strong orders in 2025 could temporarily boost ASML&#8217;s performance, it warns of potential downside risks in 2026 and 2027.
The demand for lithography technology, ASML's specialty, is expected to plateau as the semiconductor industry faces declining demand for advanced chips used in logic and memory production. UBS said that while ASML's revenue from artificial intelligence applications will increase, AI will account for only 10%-15% of the company's total sales over the next three to five years, not enough to offset declines in other areas.
<h3 class="wp-block-heading">Implications For US Semiconductors: Nvidia, Intel, AMD In Focus</h3>
The ripple effect from UBS's ASML downgrade and broader concerns about the semiconductor sector continued to weigh on U.S. semiconductor stocks. The premarket session on Wednesday showed little sign of recovery after the previous day's selloff.
The VanEck Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NYSE">SMH</a>) fell 1.4% at 8:30 a.m. ET, following a 7.5% drop on Tuesday — the ETF&#8217;s largest single-day decline since March 18, 2020.
Similarly, the iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>) was down 1.4% in premarket trading after a 7.6% decline the previous day.
Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) continued its slide, falling 2% in premarket trading after suffering a dramatic 9.5% drop on Tuesday, wiping out about $280 billion in market capitalization, the largest single-day loss in its history.
Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) was down 2.9%, compounding the 8.8% decline it experienced on Tuesday. The sharp drop has fueled speculation that Intel could be removed from the Dow Jones Industrial Average, adding more pressure on the stock.
In contrast, Advanced Micro Devices (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) showed signs of resilience, rising 1.8% to $139.37 in premarket trading. The gain follows the company's announcement of former Nvidia executive Keith Strier as its new senior vice president of global AI markets, a move seen as a strategic push into the booming AI space.
<h3 class="wp-block-heading">Chart: Nvidia Wipes Out $280B In A Single Day, The Worst Market Cap Loss Ever</h3>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="508" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/04085312/image-16-1024x508.png" alt="" class="wp-image-529406" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/04085312/image-16-1024x508.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/04085312/image-16-300x149.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/04085312/image-16-768x381.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/04085312/image-16-1536x762.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/09/04085312/image-16.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/09/40703532/no-respite-for-us-stocks-as-futures-sag-vix-spikes-10-bitcoin-slides-strategist-warns-of-further-pa">No Respite For US Stocks As Futures Sag, VIX Spikes 10%, Bitcoin Slides: Strategist Warns Of Further Pain In September, But Recommends Buying Dip</a></li>
</ul>
Photo via Shutterstock.

Analyst Color

Equities

Large Cap

Downgrades

Price Target

Global

ASML

AI-Linked US Semiconductor Stocks Brace For Red Wednesday As Analyst Downgrades Dutch Chipmaker ASML

China continues to pour billions into semiconductors, with potential implications for <a href="https://www.benzinga.com/topic/semiconductors">chipmakers</a>.
In the first half of 2024, the country invested $25 billion in chipmaking equipment, according to new data from SEMI, a global semiconductor industry association.
The figure is higher than the combined spending of South Korea, Taiwan and the U.S., which are among the leading world suppliers of chips and manufacturing equipment.
China has been the only country in the group to increase spending year-over-year.
Increased investment by the Asian giant in its domestic manufacturing capabilities could eat away at sales for top chip makers like NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and supply chain manufacturers like ASML Holding NV (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>).
<h1 class="wp-block-heading">China Goes All-in On Domestic Production</h1>
<a href="https://www.benzinga.com/government/24/08/40622630/us-embargo-fuels-chinas-6b-plus-data-center-investment-report">The Chinese government has been investing heavily</a> into developing the technology needed to gain independence from the global supply chain and reach advanced manufacturing levels.
Recent sanctions by the U.S. and other countries have cut off China from accessing integral technology needed to produce high-performance chips.
Sanctions have also included manufacturing equipment. Last week, the newly-elected Dutch prime minister was expected to block Chinese companies <a href="https://www.benzinga.com/markets/asia/24/08/40638552/asmls-china-business-in-crosshairs-of-dutch-government-semiconductors-at-center-of-east-west-tension">from receiving maintenance on chipmaking machines</a> made by ASML.
The Netherlands-based company has already been banned from selling its most advanced machines to Chinese companies, following pressure from the U.S. on European and Asian manufacturers.
Earlier this week, an analysis found that China's Semiconductor Manufacturing International Corp. is <a href="https://www.benzinga.com/news/24/09/40671027/tsmc-tech-only-3-years-ahead-of-chinas-progress-shows-analysis-us-export-restrictions-have-minimal-i">only three years away from producing the most advanced chips</a> for smartphones, currently made by Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>).
The Chinese company can produce chips with similar performance levels to those made by Taiwan Semiconductor in 2021. The news took Taiwan Semiconductor shares down over 5% on Tuesday.
China's $25 billion spending on chipmaking tools puts it on track to another record year, Nikkei Asia <a href="https://asia.nikkei.com/Business/Tech/Semiconductors/China-buys-more-chip-tools-than-South-Korea-Taiwan-U.S.-combined2">reported</a>.
The country is also the biggest investor building semiconductor factories or "fabs."
SEMI is expecting investment into semiconductor manufacturing to rise globally as countries broaden efforts to localize a larger portion of the supply chain.&nbsp;
Access to high-end semiconductors is now seen as key for guaranteeing national security interests and maintaining military and technological supremacy.
Efforts to secure semiconductor supply chains are reaching new levels. On Tuesday, Taiwan announced <a href="https://www.benzinga.com//node/40686890">an initiative to tighten its access to neon gas</a>, which is used in chip manufacturing.
&#8220;We are seeing China continue to buy all the equipment they can for their new mature-node chipmaking facilities,&#8221; said Clark Tseng, SEMI&#8217;s senior director of market intelligence. &#8220;Concerns over potential further [export control] restrictions also pushed them to pull in and secure more equipment they could buy in advance.&#8221;
The investments go beyond the country's top chip companies. There are at least more than 10 tier-two chipmakers that are also "aggressively buying new tools," said Tseng.
This is taking China to top other countries in spending growth as well. While the U.S., Taiwan and South Korea have slowed their spending on chipmaking tools in the first half of the year when compared to the same period of 2023, China continues to beat its own records.
The Chinese state is also way ahead of the U.S. in terms of public investment and subsidies for the sector, with investments <a href="https://www.benzinga.com/markets/asia/24/05/38800273/chinas-semiconductor-spending-tops-us-with-142b-commitment-global-chip-race-heats-up">several times the funding given the Biden administration so far</a>.
Read Also: <a href="https://www.benzinga.com//node/40684198">Marvell Steals The Spotlight From Nvidia, Broadcom In August: What&#8217;s Next For Chip Investors?</a>
<h1 class="wp-block-heading">Is China Slipping Away From Chipmakers' Hands?</h1>
The global trend to strengthen domestic chip production could hurt companies that rely too much on China sales.
The country continues to be a major buyer for semiconductor companies, in spite of sanctions placed in recent years. For ASML, it has represented <a href="https://www.benzinga.com/news/earnings/24/07/39808860/asml-beats-q2-earnings-expectations-with-strong-china-sales-ai-chip-demand">49% of sales in the last two quarters</a>.&nbsp;
China continues to be a major market for Nvidia, despite <a href="https://www.benzinga.com/government/24/07/39616102/despite-restrictions-nvidia-chips-are-still-reaching-china-wsj">restrictions that don't allow the company to export its top-of-the-line</a> H100 chips there.
China sales grew for Nvidia during the second quarter to $3.7 billion, up 33.8% on the year and 47.2% above the previous quarter, Nikkei <a href="https://asia.nikkei.com/Business/Tech/Semiconductors/Nvidia-s-plunge-despite-big-earnings-ripples-through-Asian-tech-stocks">reports</a>.
That's roughly 12% of Nvidia&#8217;s total sales for the quarter.
In 2023, China represented 27% of revenue for Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) and 15% for Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>), <a href="https://www.cnbc.com/2024/04/12/amd-intel-dip-on-report-china-told-telecoms-to-remove-foreign-chips.html">according</a> to CNBC.
Marvell Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>) remains the U.S. chip company with the highest China exposure, at 45% of revenue, according to a recent Zachs <a href="https://finance.yahoo.com/news/more-u-restrictions-china-amd-134600305.html">report</a>.
For Micron Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>), it's about 10%.
ETF action: VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>), the largest semiconductor ETF by total assets, took a dive on Tuesday, and is down almost 7%. The same goes for iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
Now Read:
<ul>
<li><a href="https://www.benzinga.com//node/40692210">Nvidia Maintains AI Chip Dominance as Huawei Struggles to Compete: Report</a></li>
</ul>
Photo: Shutterstock

Asia

Politics

MRVL

China's Chipmaking Investments Top US, Taiwan, South Korea Combined: What It Means For Nvidia, ASML

The Netherlands' recently elected prime minister is expected to block ASML Holding NV (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) <a href="https://www.benzinga.com//node/40301217">from assisting Chinese companies with repair and maintenance services</a>.
Dutch company ASML is a top player in the <a href="https://www.benzinga.com/topic/semiconductors">semiconductor</a> industry, and the only supplier of extreme ultraviolet lithography machines, which are required to manufacture the world's most powerful chips.
The move is expected to vastly affect China's ability to produce advanced semiconductors and could also hurt ASML's business, as it would deter Chinese companies from purchasing new ASML machines.
ASML stock traded higher earlier in the day Thursday, potentially in sympathy with NVIDIA Corp&#8216;s <a href="https://www.benzinga.com/markets/asia/24/05/38800273/chinas-semiconductor-spending-tops-us-with-142b-commitment-global-chip-race-heats-up">quarterly results</a>, which broadly <a href="https://www.benzinga.com/news/earnings/24/08/40630439/semiconductor-etfs-rally-despite-nvidia-dip-10-chipmakers-defy-the-ai-darlings-drop">boosted the chips and AI sectors</a>. ASML stock ultimately ended the session slightly negative at $887.71. 
What Happened: The government of Dick Schoof, who came into power in The Netherlands in July, will apparently not renew ASML's licenses to repair and maintain their products in China. This includes providing spare parts as well as having ASML employees stationed at Chinese companies, <a href="https://www.bloomberg.com/news/articles/2024-08-29/the-netherlands-to-put-more-curbs-on-asml-s-china-chip-business?srnd=homepage-europe&amp;sref=TBDibEcD">Bloomberg</a> reported. 
Semiconductor production lines are extremely complex and require fixed personnel to provide maintenance service. ASML has 10,000 customer support employees on staff, including service engineers and applications specialists, some of whom are permanently placed at foreign manufacturing companies.
So far, Chinese companies have not been able to purchase extreme ultraviolet lithography machines from ASML. The new rule would involve the servicing of ASML's deep ultraviolet lithography, which are second-in-line in the company's product roster and are held by Chinese tech companies like Huawei.
The latest EUV machine from ASML runs about $380 million, and the company <a href="https://www.benzinga.com/news/24/05/38842448/taiwan-semi-flags-high-costs-of-asmls-latest-chip-machines">has sold it to </a>Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) and <a href="https://www.benzinga.com/news/24/02/37071728/intel-gears-up-for-future-with-asmls-advanced-chip-machine-set-to-advance-ai-processing">Intel Corp</a> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>), among others.
Read also: <a href="https://www.benzinga.com/news/earnings/24/08/40630439/semiconductor-etfs-rally-despite-nvidia-dip-10-chipmakers-defy-the-ai-darlings-drop">Semiconductor ETFs Rally Despite Nvidia Dip: 10 Chipmakers Defy The AI Darling&#8217;s Drop</a>
Impact On ASML: China remains ASML's largest market, and has been so for the last four consecutive quarters, Bloomberg <a href="https://www.bloomberg.com/news/articles/2024-07-17/asml-s-surging-china-sales-underscore-us-threat-of-tighter-curbs?sref=TBDibEcD">reports</a>. Exports to the country represented <a href="https://www.benzinga.com/news/earnings/24/07/39808860/asml-beats-q2-earnings-expectations-with-strong-china-sales-ai-chip-demand">49% of the company's sales in the second quarter</a> of this year.
While the company's exclusive product offer has allowed it to remain present in China's market despite export controls, new restrictions will further incentivize China to develop the technology it needs to manufacture advanced chips with fully local technology.
Chinese tech giant Huawei recently announced its latest chip series are in line <a href="https://www.benzinga.com/government/24/06/39227871/nvidias-ai-chip-has-a-tough-competitor-from-china-huaweis-latest-ascend-910b">with Nvidia's high-level A100 chips in some tests</a>.
US Pressure Abroad Is Working: China is already under intense pressure from the U.S. to slow down its semiconductor industry. The Biden administration has released a battery of measures aimed at hampering China's growth in the sector and boosting the U.S. domestic industry.
The moves have been framed within the context of national security, as semiconductors are key parts in advanced military equipment and in the development of high-end artificial intelligence, among other applications that could influence the geopolitical power balance.
In 2022, <a href="https://www.benzinga.com/government/22/10/29273679/chinas-semiconductor-industry-decapitated-overnight-what-annihilation-looks-like-1">Biden threatened to revoke citizen privileges to U.S. persons</a> working with Chinese semiconductor companies, causing an exodus of American tech workers from the Asian nation.
Just last month, the government enacted an executive order <a href="https://www.benzinga.com/government/23/08/33683351/biden-targets-chinas-semiconductors-and-ai-with-new-order-restricting-investments">restricting U.S. investment in Chinese high-tech sectors</a> including semiconductors.
The moves are in line with other measures aimed at boosting the American domestic chip industry, <a href="https://www.benzinga.com/government/24/07/39592660/biden-administration-pumps-504m-to-boost-ai-chip-innovation-in-tech-hubs">including tax breaks and billion-dollar funding packages</a>.
Recently, the Biden administration issued a new rule expanding U.S. powers to bar tech exports into China from countries such as Japan, the Netherlands and South Korea <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/07/40078235/biden-rule-on-semiconductor-exports-to-china-is-huge-positive-for-chip-sector-suppl">when U.S. technology is involved</a>.
The U.S. used this rule to influence Schoof's upcoming decision, Bloomberg reported, as the Biden administration pushes to steer its allies against Chinese technological growth.
A spokesperson from China's Ministry of Commerce said this week that <a href="https://www.benzinga.com/news/24/08/40546725/china-slams-us-for-including-chinese-firms-in-export-control-list-undermines-the-international-trade">U.S. actions undermine "international trade order and rules"</a> and disrupt the "security and stability of global industrial and supply chains."
While the Chinese government <a href="https://www.benzinga.com/markets/asia/24/05/38800273/chinas-semiconductor-spending-tops-us-with-142b-commitment-global-chip-race-heats-up">has invested more than the U.S.</a> in boosting its domestic semiconductor industry, the country still lags behind in developing its own technology to become independent from foreign suppliers, many of whom are based in countries that align with U.S. political interests.
The largest semiconductor ETFs can be affected by geopolitical moves. These include VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>), iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) and Direxion Daily Semiconductor Bull 3X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>).
Now read:
<ul>
<li><a href="https://www.benzinga.com/government/24/08/40622630/us-embargo-fuels-chinas-6b-plus-data-center-investment-report">US Embargo Fuels China&#8217;s $6B Plus Data Center Investment: Report</a></li>
</ul>
Photo via Shutterstock.

ASML's China Business In Crosshairs Of Dutch Government: Semiconductors At Center Of East-West Tensions

Thursday&#8217;s trading session unfolded with semiconductor stocks surging despite a drop in Nvidia Corp.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) <a href="https://www.benzinga.com/news/24/08/40620740/nvidia-etfs-split-in-pre-market-after-jensen-huang-led-chip-giant-exceeded-q2-expectations">shares.</a>
Nvidia's earnings were seen as a critical juncture for the broader stock market in August, with the potential to either boost or reverse the recent rally. However, events did not play out as many had expected.
<h3 class="wp-block-heading">Nvidia Shares Fall On Unimpressive Guidance</h3>
Nvidia&#8217;s shares failed to rebound after a negative reaction in Wednesday&#8217;s post-market hours.
The Santa Clara, California-based company reported quarterly revenue of $30 billion, beating estimates of $28.86 billion, reflecting a 15% increase from the previous quarter and an impressive 122% year-over-year growth.
Net income reached $16.6 billion, up 12% from the prior quarter and a significant 168% increase compared to the same quarter last year. Earnings per share came in at 68 cents, surpassing the expected 64 cents.
Despite surpassing Wall Street&#8217;s revenue and earnings forecasts, Nvidia&#8217;s outlook failed to meet investors' already lofty expectations for the coming quarters. The company projected this quarter's revenue at $32.5 billion, plus or minus 2%, slightly above the estimated $31.9 billion, but not enough to excite the market.
See Also: <a href="https://www.benzinga.com/news/24/08/40624703/nvidia-to-rally-over-31-here-are-10-top-analyst-forecasts-for-thursday">NVIDIA To Rally Over 31%? Here Are 10 Top Analyst Forecasts For Thursday</a>
<h3 class="wp-block-heading">7 Semiconductor ETFs Rise</h3>
Investors likely viewed Nvidia's quarterly results as a standalone event, opting for caution as the company's guidance did not significantly exceed expectations. 
Yet, they maintained a generally positive sentiment toward the broader market. Competitors of the AI giant experienced a marked rally, deviating from their usual trend of closely following Nvidia&#8217;s performance. 
&#8220;We believe Nvidia's comments on Data Center demand were constructive,&#8221; Toshiya Hari, an analyst at Goldman Sachs, stated. The company&#8217;s outlook for data center demand bodes well for other semiconductor firms involved in the AI infrastructure build-out.
Hari highlighted &#8220;ongoing tightness in High-Bandwidth Memory as a material positive for Buy-rated Micron Technology Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>).&#8221;
Even exchange-traded funds (ETFs) with a significant Nvidia exposure witnessed positive performance during Thursday's trading session. Here are some notable movers:
<ul>
<li>Strive U.S. Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHOC#NYSE">SHOC</a>): up 0.7%, despite Nvidia comprising 30% of the fund.</li>
<li>VanEck Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NYSE">SMH</a>): up 0.8%.</li>
<li>VanEck Fabless Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMHX#NYSE">SMHX</a>): up 1.2%. This newly launched ETF focuses on companies that specialize in chip design and development while outsourcing production.</li>
<li>Invesco PHLX Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXQ#NYSE">SOXQ</a>): up 1.4%.</li>
<li>First Trust Nasdaq Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXL#NASDAQ">FTXL</a>): up 1.6%.</li>
<li>iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>): up 1.7%.</li>
<li>SPDR S&amp;P Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XSD#NYSE">XSD</a>): up 2.7%.</li>
</ul>
<h3 class="wp-block-heading">Thursday&#8217;s Top-Performing Semiconductor Stocks</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Name</td>
<td>1-Day %</td>
</tr>
<tr>
<td>Arm Holdings pic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ARM#NASDAQ">ARM</a>)</td>
<td>4.81%</td>
</tr>
<tr>
<td>Intel Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>)</td>
<td>4.50%</td>
</tr>
<tr>
<td>Marvell Technology, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>)</td>
<td>4.29%</td>
</tr>
<tr>
<td>ON Semiconductor Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ON#NASDAQ">ON</a>)</td>
<td>4.18%</td>
</tr>
<tr>
<td>Qorvo, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QRVO#NASDAQ">QRVO</a>)</td>
<td>3.73%</td>
</tr>
<tr>
<td>Teradyne, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TER#NASDAQ">TER</a>)</td>
<td>3.37%</td>
</tr>
<tr>
<td>Onto Innovation Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ONTO#NASDAQ">ONTO</a>)</td>
<td>3.06%</td>
</tr>
<tr>
<td>Microchip Technology Incorporated (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHP#NASDAQ">MCHP</a>)</td>
<td>2.98%</td>
</tr>
<tr>
<td>Analog Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADI#NASDAQ">ADI</a>)</td>
<td>2.82%</td>
</tr>
<tr>
<td>Skyworks Solutions, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SWKS#NASDAQ">SWKS</a>)</td>
<td>2.80%</td>
</tr>
</tbody>
</table>
</figure>
Now Read:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40628887/nvidia-analysts-say-pullback-is-buying-opportunity-pushing-ai-envelope-too-signific">Nvidia Analysts Say Pullback Is Buying Opportunity: &#8216;Pushing AI Envelope Too Significant To Slow Down&#8217;</a></li>
</ul>

Earnings

Mid Cap

Small Cap

MCHP

ONTO

QRVO

EA Series Trust Strive U.S. Semiconductor ETF

SHOC

SMHX

SWKS

Semiconductor ETFs Rally Despite Nvidia Dip: 10 Chipmakers Defy The AI Darling's Drop

Micron Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) shares are trading higher by 2% to $96.79 during Thursday&#8217;s session as traders and investors assess NVIDIA Corp&#8217;s <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40620595/as-nvidia-tumbles-post-q2-earnings-tech-bull-draws-parallels-to-markets-reaction-to">second-quarter earnings results</a>.
The VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) is trading marginally higher Thursday by 0.7% to $242.57, despite Nvidia shares falling some 4% in early Thursday trading.
What Happened: Nvidia late Wednesday reported strong second-quarter earnings, with revenue and profits more than doubling year-over-year, driven by robust demand in the data center segment. However, gross margins slightly contracted due to inventory provisions and a higher mix of new products. 
Despite exceeding expectations and issuing strong guidance for the next quarter, Nvidia's stock is down some 4% following the earnings report. The company also announced a $50 billion stock repurchase plan and projected third-quarter revenue of $32.5 billion.
Read Also: <a href="https://www.benzinga.com/markets/equities/24/08/40604424/10-etfs-poised-for-wild-swings-following-nvidia-earnings">10 ETFs Poised For Wild Swings Following Nvidia Earnings</a>
Why This Matters: Micron&#8217;s stock could rise despite Nvidia&#8217;s decline because investors may anticipate that Nvidia&#8217;s strong performance, particularly in AI and data centers, will lead to increased demand for memory chips, which Micron produces. 
Nvidia&#8217;s growth in AI and accelerated computing requires substantial amounts of memory, benefiting suppliers like Micron. 
Even though Nvidia&#8217;s stock fell due to specific concerns such as gross margin contraction and potential delays in their AI chips, the overall positive outlook for the AI market and data centers could boost expectations for Micron&#8217;s future sales and profitability, driving its stock price up.
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40620595/as-nvidia-tumbles-post-q2-earnings-tech-bull-draws-parallels-to-markets-reaction-to">As Nvidia Tumbles Post Q2 Earnings, Tech Bull Draws Parallels To Market&#8217;s Reaction To Apple Stock After WWDC 2024: &#8216;We Always Focus On Demand, Guidance, And Growth&#8217;</a>
<h2 class="wp-block-heading">How To Buy MU Stock</h2>
Besides going to a brokerage platform to purchase a share &#8211; or fractional share &#8211; of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument. 
For example, in Micron Technology&#8217;s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
According to data from <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>, MU has a 52-week high of $157.54 and a 52-week low of $63.83.

What's Going On With Micron (MU) Stock?

Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) is set to report its highly anticipated earnings Wednesday, and the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40597015/will-nvidia-continue-to-deliver-investors-sweat-over-hyped-up-expectations-and-pote">stakes couldn't be higher.</a>
As the undisputed leader in the AI revolution, Nvidia&#8217;s results will be a critical indicator for the broader market, particularly for those invested in semiconductor and technology sectors.
This highly followed market event offers both risk and opportunity. For traders seeking to capitalize on Nvidia's earnings without the direct exposure to single-stock volatility, ETFs with substantial Nvidia holdings present an appealing alternative. 
Read Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40596306/market-eyes-305b-shift-in-nvidias-market-cap-as-options-pricing-forecasts-9-8-post-">Market Eyes $305B Shift In Nvidia&#8217;s Market Cap As Options Pricing Forecasts 9.8% Post-Earnings Move: &#8216;A Lot Of That Insurance Is FOMO&#8217;</a>
<h3 class="wp-block-heading">Nvidia Earnings Expectations: A High Bar Set</h3>
Wall Street has set an ambitious target for Nvidia this quarter, with revenue expected to hit $28.74 billion — a staggering 17% increase from the previous quarter and an eye-popping 156% jump from the same quarter last year. 
Earnings per share (EPS) are forecasted to rise to 65 cents, up from 56 cents in the prior quarter and 21 cents in the same period last year.
Goldman Sachs&#8217; semiconductor analyst, Toshiya Hari, is bullish on Nvidia&#8217;s prospects, predicting the company will surpass these already lofty expectations. 
&#8220;We believe customer demand across the large Cloud Service Providers and enterprises is strong, and Nvidia&#8217;s robust competitive position in AI/accelerated computing remains intact,&#8221; Hari stated in a note published this month. 
The driving force behind this optimism? Data Center revenues and strong operating leverage. Hari highlights three key areas: robust demand for the H100 GPUs, the launch of volume shipments of the H200, and the ramp-up of Nvidia&#8217;s Ethernet-based networking product, Spectrum-X. These factors could fuel a significant earnings beat, potentially leading to upward revisions in EPS.
Shares of the AI tech giant are up 159% year to date, after surging by 239% in 2023. 
<h3 class="wp-block-heading">Historical Volatility: A Look At Past Nvidia Earnings</h3>
Nvidia&#8217;s stock has a history of sharp rallies post-earnings, with an average one-day boost of 9% over the past eight quarters and 7.1% over the last four.
A Goldman Sachs analysis identified the VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) as having the highest average post-earnings move (3.4%) following Nvidia's past eight earnings releases. 
It was followed by the iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>) at 2.9% and the ARK Innovation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKK#NYSE">ARKK</a>) at 2.4%.
<h3 class="wp-block-heading">Top 10 ETFs With Nvidia Exposure</h3>
For traders looking to gain exposure to Nvidia's potential earnings-driven rally, here are 10 ETFs with the largest holdings in the stock:
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF Name</th>
<th>Nvidia Weight %</th>
<th>YTD Performance (%)</th>
</tr>
</thead>
<tbody>
<tr>
<td>ProShares Ultra Semiconductors (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USD#NYSE">USD</a>)</td>
<td>30.69%</td>
<td>136%</td>
</tr>
<tr>
<td>Strive U.S. Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHOC#NYSE">SHOC</a>)</td>
<td>29.54%</td>
<td>19.2%</td>
</tr>
<tr>
<td>Simplify Volt RoboCar Disruption (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCAR#NYSE">VCAR</a>)</td>
<td>22.83%</td>
<td>12.7%</td>
</tr>
<tr>
<td>VanEck Semiconductor ETF </td>
<td>21.95%</td>
<td>41.3%</td>
</tr>
<tr>
<td>The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</td>
<td>21.29%</td>
<td>16.7%</td>
</tr>
<tr>
<td>Grizzle Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DARP#NYSE">DARP</a>)</td>
<td>20.32%</td>
<td>13.9%</td>
</tr>
<tr>
<td>Franklin Focused Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FFOG#NYSE">FFOG</a>)</td>
<td>18.07%</td>
<td>26.4%</td>
</tr>
<tr>
<td>iShares Global Tech ETF (IXN)</td>
<td>17.55%</td>
<td>21.6%</td>
</tr>
<tr>
<td>iShares ESG Advanced MSCI USA ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USXF#NYSE">USXF</a>)</td>
<td>16.05%</td>
<td>22.4%</td>
</tr>
<tr>
<td>SoFi Select 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SFY#NYSE">SFY</a>)</td>
<td>15.96%</td>
<td>20.5%</td>
</tr>
</tbody>
</table>
</figure>
Now Read:
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40600345/big-tech-is-your-flight-to-safety-and-your-flight-to-growth-says-expert-ahead-of-nv">&#8216;Big Tech Is Your Flight To Safety And Your Flight To Growth,&#8217; Says Expert Ahead Of Nvidia Earnings</a></li>
</ul>

ARKK

DARP

Franklin Templeton ETF Trust Franklin Focused Growth ETF

FFOG

USXF

Simplify Volt RoboCar Disruption and Tech ETF

VCAR

10 ETFs Poised For Wild Swings Following Nvidia Earnings

ETFs that allow investing in Nvidia (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) are showing mixed reactions on Wednesday pre-market ahead of the Jensen Huang-led company&#8217;s earnings call.
What Happened: According to <a href="https://www.benzinga.com/top-stories/24/08/40534794/nvidia-is-next-weeks-top-stock-market-strategist-says-why-best-long-term-idea-is-just-buy-nvidia-and">Benzinga Pro</a>, at the time of writing, Direxion Daily Semiconductor Bull 3x Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NYSE">SOXL</a>) was trading higher by 1.14%, while Direxion Daily Semiconductor Bear 3x Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXS#NYSE">SOXS</a>) was down by 0.85%.
VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) was trading 0.40% higher, and ETF Opportunities Trust T-Rex 2X Long NVIDIA Daily Target ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/NVDX#BATS">NVDX</a>) also increased by 1.09%.
Meanwhile, GraniteShares 2x Short NVDA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVD#NASDAQ">NVD</a>) fell by 1.20%, whereas GraniteShares 2x Long NVDA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDL#NASDAQ">NVDL</a>) gained 0.98%.
See Also: <a href="https://www.benzinga.com/markets/equities/24/08/40524790/amazon-ceo-andy-jassy-says-companys-ai-assistant-has-saved-260m-and-4-5k-developer-years-of-work?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Amazon CEO Andy Jassy Says Company&#8217;s AI Assistant Has Saved $260M And 4.5K Developer-Years Of Work: &#8216;It&#8217;s Been A Game Changer For Us&#8217;</a>
Why It Matters: Investors are keenly observing Nvidia ahead of its earnings report, which is anticipated to significantly impact the market. A Morgan Stanley analyst expressed confidence in <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40570314/top-nvidia-analyst-sees-no-major-impact-from-blackwell-delay-but-flags-one-caveat-h">Nvidia&#8217;s ability to meet high expectations</a>, despite potential delays in Blackwell shipments. The analyst, Joseph Moore, maintained an Overweight rating and a $144 price target for Nvidia shares.
Moreover, Goldman Sachs highlighted the potential for a significant <a href="https://www.benzinga.com/markets/equities/24/08/40592599/nvidia-stock-poised-for-major-298b-market-jolt-as-q2-earnings-loom-says-goldman-sachs-can-you-im">market value fluctuation</a>, estimating a possible $298 billion swing following Nvidia&#8217;s second-quarter earnings report. This projection is based on options pricing data, which suggests a potential 9% move in Nvidia stock in either direction.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/cannabis/24/08/40590258/gop-congress-member-nancy-mace-they-havent-done-anything-slams-dnc-cannabis-inaction-calls-out-r?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">GOP Congress Member Nancy Mace: &#8216;They Haven&#8217;t Done Anything,&#8217; Slams DNC Cannabis Inaction, Calls Out Republican Reluctance</a></li>
</ul>
Image via Unsplash
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

ETF Opportunities Trust T-Rex 2X Long NVIDIA Daily Target ETF

NVDX

Direxion Daily Semiconductor Bear 3X Shares

SOXS

NVDL, SOXL And Other Chip-Stock Tracking ETFs Trade Mixed Ahead Of Nvidia Earnings: Here's Why

To gain an edge, this is what you need to know today.
<figure class="wp-block-image size-large is-resized"><img decoding="async" src="https://thearorareport.com/wp-content/uploads/2024/08/2024-08-22_08h54_38.png" alt="" style="width:624px" /></figure>
<h3 class="wp-block-heading">Semiconductor Buying</h3>
Please <a href="https://thearorareport.com/chart-analysis-stock-market-semiconductor-buying-payroll-revision-nvda-mc-08222024">click here</a> for an enlarged chart of VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>).
Note the following:
<ul>
<li>The chart shows the moves in semiconductors after prior NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) earnings.</li>
<li>The chart shows that semiconductors traced a double top, which is a negative pattern, and then dropped to the support zone.</li>
<li>The chart shows that semiconductors bounced off of the support zone.</li>
<li>RSI on the chart shows that semiconductors are overbought. Overbought markets tend to be vulnerable to the downside.</li>
<li>The momo crowd is aggressively buying semiconductors ahead of Nvidia earnings as they believe semiconductors will rise after Nvidia earnings just like they have in the past.
<ul>
<li>Prudent investors need to remember that history is instructive, but the road ahead is not always the same as the road behind.&nbsp;&nbsp;</li>
</ul>
</li>
<li>U.S. payrolls have been revised down by 818,000 for the year ending in March.&nbsp; This is the biggest downward revision since 2009.</li>
<li>The Bureau of Labor Statistics did not post the jobs revision data on its website at 10am ET as it was supposed to.&nbsp; However, the banks who called the Bureau were able to get the data, gaining an advantage.&nbsp; The data was finally made available about 30 minutes late.
<ul>
<li>The initial reaction from the market was a spike up as many believe this will encourage the Fed to make bigger rate cuts.</li>
<li>Investors who knew that the data did not include data since March sold into the spike.</li>
</ul>
</li>
<li>The FOMC minutes were dovish and indicate that the Fed is poised to cut rates in September.</li>
<li>Weekly jobless claims came at 232K vs. 225K consensus. Lately, the stock market is reacting when jobless claims are lower than the consensus but ignoring when they are higher than the consensus.&nbsp; The reason is that the bullish sentiment is so extreme that investors want to hear only what makes the market go higher.&nbsp;&nbsp;</li>
</ul>
<h3 class="wp-block-heading">Magnificent Seven Money Flows</h3>
In the early trade, money flows are positive in Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Alphabet Inc Class C (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), NVDA, and Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>).
In the early trade, money flows are neutral in Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>).
In the early trade, money flows are mixed in SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>).
<h3 class="wp-block-heading">Momo Crowd And Smart Money In Stocks</h3>
Investors can gain an edge by knowing money flows in SPY and QQQ.  Investors can get a bigger edge by knowing when smart money is buying stocks, gold, and oil.  The most popular ETF for gold is SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>).  The most popular ETF for silver is iShares Silver Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLV#NYSE">SLV</a>).  The most popular ETF for oil is United States Oil ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/USO#NYSE">USO</a>).
<h3 class="wp-block-heading">Bitcoin</h3>
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) is seeing buying as the Harris campaign indicates support for crypto.
<h3 class="wp-block-heading">Protection Band And What To Do Now</h3>
It is important for investors to look ahead and not in the rearview mirror.
Consider continuing to hold good, very long term, existing positions. Based on individual risk preference, consider a protection band consisting of cash or Treasury bills or short-term tactical trades as well as short to medium term hedges and short term hedges. This is a good way to protect yourself and participate in the upside at the same time.
You can determine your protection bands by adding cash to hedges.&nbsp; The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.&nbsp; If you do not hedge, the total cash level should be more than stated above but significantly less than cash plus hedges.
A protection band of 0% would be very bullish and would indicate full investment with 0% in cash.&nbsp; A protection band of 100% would be very bearish and would indicate a need for aggressive protection with cash and hedges or aggressive short selling.
It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.&nbsp; When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.&nbsp; High beta stocks are the ones that move more than the market.
<h3 class="wp-block-heading">Traditional 60/40 Portfolio</h3>
Probability based risk reward adjusted for inflation does not favor long duration strategic bond allocation at this time.
Those who want to stick to traditional 60% allocation to stocks and 40% to bonds may consider focusing on only high quality bonds and bonds of five year duration or less.&nbsp; Those willing to bring sophistication to their investing may consider using bond ETFs as tactical positions and not strategic positions at this time.
The Arora Report is known for its accurate calls. The Arora Report correctly called the big artificial intelligence rally before anyone else, the new bull market of 2023, the bear market of 2022, new stock market highs right after the virus low in 2020, the virus drop in 2020, the DJIA rally to 30,000 when it was trading at 16,000, the start of a mega bull market in 2009, and the financial crash of 2008. Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter-benzinga">Generate Wealth Newsletter</a>.

Momo Crowd Buying Semiconductors Ahead Of Nvidia Earnings, Biggest Payroll Revision Since 2009

ON Semiconductor Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ON#NASDAQ">ON</a>) is taking decisive steps to diversify its supply chain, aiming to mitigate risks associated with the growing influence of Chinese chip suppliers.
The company, known for its power chips and sensors used in electric vehicles, recently unveiled plans for a new $2 billion manufacturing facility in the Czech Republic. It is also expanding its operations in South Korea.
Also Read: <a target="_blank" href="https://www.benzinga.com/markets/equities/24/07/39881542/on-semiconductor-seals-multi-year-deal-with-volkswagen-for-advanced-ev-solutions-stock-gains" rel="noreferrer noopener">ON Semiconductor Seals Multi-Year Deal with Volkswagen for Advanced EV Solutions; Stock Gains</a>
The decision to bolster its global manufacturing footprint comes as China intensifies its push to promote local chip suppliers, potentially sidelining foreign competitors, the Wall Street Journal <a target="_blank" href="https://www.wsj.com/articles/on-semiconductor-looks-to-bolster-supply-chain-to-shield-against-rise-of-chinese-chip-makers-f16fbdff?mod=tech_lead_story" rel="noreferrer noopener">reports</a>.
Thad Trent, ON Semiconductor CFO, emphasized the importance of expanding existing manufacturing locations, noting that it saves the company around 40% in capital expenditures and accelerates development timelines by up to two years.
In July, ON Semiconductor reported a <a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/40010835/on-semiconductor-q2-earnings-revenue-and-eps-beat-ceo-highlights-automotive-gains-strong-q3-outlook" rel="noreferrer noopener">fiscal second-quarter 2024</a> revenue decline of 17.2% year-on-year. Revenue from the Power Solutions Group (PSG), Analog and Mixed-Signal Group (AMG), and Intelligent Sensing Group (ISG) segments posted double-digit revenue declines.
The company also posted a margin decline due to industry pricing pressures. ON Semiconductor stock plunged 19% in the last 12 months.
On a related note, critical artificial intelligence chip designer Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) <a target="_blank" href="https://www.benzinga.com/government/24/07/39616102/despite-restrictions-nvidia-chips-are-still-reaching-china-wsj" rel="noreferrer noopener">also grabbed attention as</a> U.S. sanctions failed to cut off its supply to China, as it was smuggled to the country.
Investors can gain exposure to the semiconductor industry through VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) and iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>).
<h2 class="wp-block-heading">ON Semiconductor Stock Prediction For 2024</h2>
Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.
Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at ON Semiconductor, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. 
If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For ON Semiconductor, the 200-day moving average sits at $73.6, according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, which is below the current price of $76.36. For more on charts and trend lines, <a href="https://pro.benzinga.com/">see a description here.</a>
Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.
Price Action: ON stock traded higher by 0.44% at $76.15 at the last check on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

ON Semiconductor Diversifies Supply Chain, Targets Savings With New Manufacturing Investments

U.S. Equity Market Betas - Why They Matter And How They Are Changing

PSI: Why You Need Direct Exposure To The Semiconductor Sector

Chip stocks are in focus ahead of MU earnings and the Meta Connect 2024 conference

The semiconductor sector is poised for strong growth, driven by rising penetration of digital technologies and rising adoption of various consumer electronics across the globe. Thus, to gain exposure to the semiconductor sector, one could consider watching SPDR S&P Semiconductor (XSD), iShares Semiconductor (SOXX), and VanEck Semiconductor (SMH). Read on… Rising demand has spurred fresh industry investments to boost chip production. With support from the CHIPS and Science Act, the United States is projected to more than triple its semiconductor manufacturing capacity and attract a greater share of private investment in the sector.
Given this long-term positive sentiment, watching semiconductor ETFs such as SPDR S&amp;P Semiconductor ETF (<a href="https://stocknews.com/stock/XSD/">XSD</a>), iShares Semiconductor ETF (<a href="https://stocknews.com/stock/SOXX/">SOXX</a>), and VanEck Semiconductor ETF (<a href="https://stocknews.com/stock/SMH/">SMH</a>) might be wise choices now.
The rising demand for semiconductors is driven by AI, 5G, electric vehicles, and cloud computing growth. As these technologies expand, the need for chips intensifies, creating opportunities in the semiconductor industry. ETFs offer diversified exposure, reducing risk by investing in a basket of semiconductor companies across the supply chain.
Moreover, the Semiconductor Industry Association (SIA) reported global sales of $149.90 billion during the second quarter of 2024, up <a href="https://www.semiconductors.org/global-semiconductor-sales-increase-18-3-in-q2-2024-compared-to-q2-2023-quarter-to-quarter-sales-up-6-5/">18.3% from last year</a>. In fact, companies in the <a href="https://www.semiconductors.org/the-chips-act-has-already-sparked-200-billion-in-private-investments-for-u-s-semiconductor-production/">semiconductor ecosystem have announced</a> more than 90 new manufacturing projects in the United States since CHIPS was first introduced in Congress, totaling nearly $450 billion in announced investments across 28 states.
With that in mind, let's look at the fundamentals of three <a href="https://stocknews.com/category/technology-equities-etfs/">Technology Equities ETFs</a>, beginning with the third one.
ETF #3: SPDR S&amp;P Semiconductor ETF (<a href="https://stocknews.com/stock/XSD/">XSD</a>)
XSD is an exchange-traded fund launched by State Street Global Advisors, Inc. It is managed by SSGA Funds Management, Inc. The fund invests in stocks of companies operating across information technology, semiconductors and semiconductor equipment, and semiconductors sectors.
With $1.40 Billion in <a href="https://www.investopedia.com/terms/a/aum.asp">AUM</a>, its top holdings are Semtech Corporation (<a href="https://stocknews.com/stock/SMTC/">SMTC</a>) with a 5.1% weighting, Impinj, Inc. (<a href="https://stocknews.com/stock/PI/">PI</a>) at 4.4%, and Monolithic Power Systems, Inc. (<a href="https://stocknews.com/stock/MPWR/">MPWR</a>) at 3.7% weight.
The ETF's expense ratio is 0.35%, compared to the category average of 0.58%. XSD's fund inflows were $50.34 million over the past month. The fund pays an annual dividend of $0.55, which translates to a 0.24% yield at the current price level.
XSD has gained 3.5% over the past three months to close the last trading session at $231.06. It has a five-year beta of 1.75. The fund's NAV was $230.94 as of September 20, 2024.
XSD's <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a> reflect this promising outlook. The ETF's overall A rating equates to a Neutral in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
The fund has a C grade for Trade and Buy &amp; Hold. XSD is ranked #77 in the <a href="https://stocknews.com/category/technology-equities-etfs/">Technology Equities ETFs</a> ETF. <a href="https://stocknews.com/stock/XSD/">Click here</a> to access all the XSD ratings.
ETF #2: iShares Semiconductor ETF (<a href="https://stocknews.com/stock/SOXX/">SOXX</a>)
SOXX is an exchange-traded fund launched by BlackRock, Inc. The fund focuses on companies operating in the information technology, semiconductors, and semiconductor equipment sectors. It invests in growth and value stocks of companies across diversified market capitalizations.
With $14.08 billion in AUM, the fund has a total of 15 holdings. SOXX's top holding is Broadcom Inc. (<a href="https://stocknews.com/stock/AVGO/">AVGO</a>) with a 10.4% weighting, followed by NVIDIA Corporation (<a href="https://stocknews.com/stock/NVDA/">NVDA</a>) with an 8.9% weighting, and Advanced Micro Devices, Inc. (<a href="https://stocknews.com/stock/AMD/">AMD</a>) with 7.8%.
SOXX has an expense ratio of 0.35%, lower than the category average of 0.58%. It currently has a NAV of $223.65. Its fund inflows came in at $281.48 billion over the past month.
The fund's annual dividend of $1.46 yields 0.64% on the current share price. Its four-year average yield is 0.86%. Its dividend payouts have increased at a CAGR of 12.5% over the past three years and 12.6% over the past five years.
SOXX has gained 42.5% over the past year and 21.4% over the past nine months to close the last trading session at $223.67.
SOXX's POWR Ratings reflect solid prospects. Its overall rating of C equates to a Neutral in our proprietary rating system.
SOXX has a C grade for Buy &amp; Hold and Trade. Of the 119 ETFs in the same group, it is ranked #75. Get all SOXX ratings <a href="https://stocknews.com/stock/SOXX/">here</a>.
ETF #1: VanEck Semiconductor ETF (<a href="https://stocknews.com/stock/SMH/">SMH</a>)
SMH is an exchange-traded fund launched and managed by Van Eck Associates Corporation. The fund invests in growth and value stocks of companies across diversified market capitalizations. It seeks to track the performance of the MVIS US Listed Semiconductor 25 Index by using a full replication technique.
With $22.66 billion in AUM, SMH's top holding is NVDA, with a 20.7% weighting, followed by Taiwan Semiconductor Manufacturing Company Limited (<a href="https://stocknews.com/stock/TSM/">TSM</a>), with a 14.2% weighting, and AVGO, with 8.6%. SMH has a total of 15 holdings.
SMH has an expense ratio of 0.35%, lower than the category average of 0.58%. It currently has a NAV of $237.83. Its fund inflows came in at $6.02 billion over the past year.
The ETF pays an annual dividend of $1.04, which yields 0.44% on the current price. It has a four-year average dividend yield of 0.85%. Its dividend payouts have increased at a CAGR of 11.6% over the past three years and 5% over the past five years.
SMH has gained 66.6% over the past year and 40.7% over the past nine months to close the last trading session at $237.90.
SMH's POWR Ratings reflect its promising prospects. The ETF's overall C rating equates to a Neutral in our proprietary rating system.
SMH has a C grade for Buy &amp; Hold and Trade. In the same ETF group, it is ranked #74. <a href="https://stocknews.com/stock/SMH/">Click here</a> to access all of SMH's POWR Ratings.
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<hr />
SMH shares were trading at $238.59 per share on Monday afternoon, up $0.69 (+0.29%). Year-to-date, SMH has gained 36.44%, versus a 20.51% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Nidhi Agarwal</h2> <img src='https:/wp-content/uploads/2023/03/Nidhi-Agarwal_Headshot-3.jpg' style="float:left; padding:5px;width:125px;">Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program.

Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.<a href="https://stocknews.com/authors/?author=nidhi-agarwal">More...</a>The post <a href=https://stocknews.com/news/smh-soxx-xsd-3-semiconductor-etfs-to-watch-as-chip-demand-rises/>3 Semiconductor ETFs to Watch as Chip Demand Rises</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

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