U.S. equities are bouncing between gains and losses on Tuesday as investors remain preoccupied with the potential for trade tariffs from the Trump Administration. And while headlines related to issues like inflation, higher interest rates and Federal Reserve policy tightening have faded somewhat, these are going to return to the forefront later this week when the February jobs report is released on Friday.
Amid the listlessness, one sector group is showing undeniable strength. And that’s semiconductors, an area of the market that has doubled since the summer of 2016 on internet of things hype. The sector is in the news today amid reports that a U.S. security panel has warned against Broadcom Ltd’s (NASDAQ:AVGO) hostile bid for Qualcomm, Inc. (NASDAQ:QCOM) on fears it would allow the Chinese to dominate 5G technology.
Here are five semiconductor stocks on the move right now:
Semiconductor Stocks to Buy: Intel (INTC)
Intel Corporation (NASDAQ:INTC) is breaking up and out of a long trading range, going back to November with a break above the prior high near $50. Up roughly 10% from its early February panic low, shares are getting a lift thanks to an upgrade by analysts at Nomura. The company seems to be working through the negative headlines related to a hardware security vulnerability that dominated attention back in January.
The company will next report results on April 26, after the close. Analysts are looking for earnings of 71-cents-per-share on revenues of $15.01 billion. When the company last reported on Jan. 25, earnings of $1.08-per-share beat estimates by 21 cents on a 4.1% rise in revenues.
Semiconductor Stocks to Buy: ON Semiconductor (ON)
ON Semiconductor Corp (NASDAQ:ON) shares are poised to break above their January high, pushing back above the $25-a-share threshold for a 25% rebound from their February panic lows. Following earnings last month, the company enjoyed upgrades from analysts at Craig Hallum and Mizuho on new/existing product growth in areas like automotive cameras.
The company will next report results on May 7, after the close. Analysts are looking for earnings of 39-cents-per-share on revenues of $1.36 billion. When the company last reported on Feb. 5, earnings of 39-cents-per-share beat estimates by 3 cents on a 9.2% rise in revenues.
Semiconductor Stocks to Buy: Taiwan Semiconductor (TSM)
Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) shares are preparing to push up and out of a two-month consolidation range with a test above the $44-a-share level on Tuesday. Shares benefited from an analyst upgrade from Credit Suisse on Feb. 20, highlighting strong end demand and relatively modest inventory levels.
The company will next report results on April 19, before the bell. Analysts are looking for earnings of $3.50-per-share on revenues of $251.9 billion. When the company last reported on January 18, earnings of $3.83 beat estimates by 8 cents on a 5.8% rise in revenues.
Semiconductor Stocks to Buy: Lam Research (LRCX)
Lam Research Corporation (NASDAQ:LRCX) shares are trading up 4.4% on Tuesday, closing in on the upper end of a five-month trading range near $220. The move is being fueled by management’s announcement at its investor meeting today that they plan to return at least 50% of free cash flow to investors over the next five years via repurchases and dividends. Analysts at Stifel are looking for a price target of $260.
The company will next report results on April 25, after the close. Analysts are looking for earnings of $4.36-per-share on revenues of $2.9 billion. When the company last reported on Jan. 24, earnings of $4.34-per-share beat estimates by 67 cents on a 37.1% rise in revenues.
Semiconductor Stocks to Buy: Texas Instruments (TXN)
Texas Instruments Incorporated (NASDAQ:TXN) shares are down 8% from their January highs but have rebounded 10% from the February panic lows. Watch for a break above resistance at the $110-a-share threshold. Following its latest earnings report, analysts gushed about strong demand in areas like automotive (with growth of upwards of 19% year-over-year) that’s offsetting weakness in the communications vertical.
The company will next report results on April 24 after the close. Analysts are looking for earnings of $1.11-per-share on revenues of $3.65 billion. When the company last reported on Jan. 23, earnings of $1.09-per-share matched expectations on a 9.8% rise in revenues.
Anthony Mirhaydari is the founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
