logo-loader
viewMicron Technology, Inc.

AMD leads chip stocks as Taiwan supplier sees uptick in orders

Taiwan Semiconductor Manufacturing Company observed increasing orders for 7nm smartphone chips

Man working on semiconductor
A semiconductor trade group urged government officials to increase chip research funding

Semiconductor stocks were up across the board Wednesday after a report that Taiwan Semiconductor Manufacturing Company has seen orders for 7nm smartphone chips increase, per DigiTimes.

The company’s process capacity utilization rate is also on the rise, indicating a jump in demand for Android devices.

The PHLX Semiconductor Sector index grew 2.6% to 1,468.4, and the iShares PHLX Semiconductor ETF (NASDAQ:SOXX) increased 2.4% to $199.2. 

Advanced Micro Devices (NASDAQ:AMD), one company that relies on chips from TSMC, is seeing an uptick in CPU and GPU shipments for notebooks, motherboards and serves, a source from PC makers told DigiTimes, which is expected to boost sales. The Santa Clara, California company plans to launch its third-generation Ryzen series CPU in May. On Tuesday, Nomura initiated coverage of the stock with a Buy rating and a price target of $33, a 23% premium over Tuesday’s close.

The stock surged 8.5% to $29.02.

READ: Baird analyst reiterates Underperform rating on US chipmaker Micron Technology

Micron Technology Inc (NASDAQ:MU) is also in line to benefit. A trade group for the semiconductor industry representing companies including Micron and Nvidia Corp (NASDAQ:NVDA) urged the US government Wednesday to increase federal funding for chip research to $5 billion from $1.5 billion over the next five years, Reuters reported. The group also wants to change how the US recruits skilled workers in order to more easily allow immigrants from China and India to get permanent residency.

Micron shares rose 3.4% to $43.90, and Nvidia grew 3.1% to $188.77.

NXP Semiconductors NV (NASDAQ:NXPI) stock increased 3.7% to $96.18. The Netherlands company announced Tuesday that it would review first quarter results on April 29.

Applied Materials Inc (NASDAQ:AMAT) saw its share price advance 3.5% to $42.43.

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

Quick facts: Micron Technology, Inc.

Price: 47.93 USD

NASDAQ:MU
Market: NASDAQ
Market Cap: $53.06 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Impax Asset Management reveals key themes investors should...

Impax Asset Management Group PLC (LON:IPX) Head of Client Services and Business Development David Richardson tells Proactive key themes investors should look out for in 2020.  Richardson says he's seeing expansion in developing renewable energy projects in Europe, increased interested in...

1 day, 16 hours ago

2 min read