Many U.S. equities rallied higher on Thursday thanks to budding optimism surrounding the G20 meeting between U.S. President Donald Trump and Chinese President Xi Jinping. There are conflicting reports of a possible breakthrough if Trump is willing to press pause on the latest round of tariffs on Chinese imports.
Technology stocks in particular are in focus since they are at the epicenter of the tensions. Supply chains span the Pacific. And the lockout of Huawei from American semiconductor suppliers shows that in some cases, it’s a life-or-death struggle for parts.
With a possible thaw on the way, it’s no surprise stocks in this area are blasting higher. Here are four to watch:
Semiconductor Stocks to Buy: Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) shares are breaking out above their 50-day moving average for the first time since March, setting up a run at the 200-day moving average that hasn’t been topped since October. The company had been losing some ground to rival AMD in recent months but is poised for the rumored launch of a new graphics processing unit offering on July 2 that could recapture some market share and excitement according to a Tech Radar Report.
The company will next report results on Aug. 15 after the close. Analysts are looking for earnings of $1.14 per share on revenues of $2.6 billion. When the company last reported on May 16, earnings of 88 cents per share beat estimates by seven cents on a 30.8% decline in revenues.
AMD (AMD)
Advanced Micro Devices (NASDAQ:AMD) shares continue to march higher, enjoying another rebound off of the 50-day moving average. The company continues to benefit from hardware wins in the upcoming refresh of gaming console hardware from Sony (NYSE:SNE) and Microsoft (NASDAQ:MSFT). Research coverage was recently initiated at Wedbush with an outperform rating.
The company will next report results on July 24 after the close. Analysts are looking for earnings of eight cents per share on revenues of $1.5 billion. When the company last reported on April 30, earnings of six cents per share matched estimates despite a 22.8% decline in revenues.
Micron (MU)
Shares of Micron (NASDAQ:MU) are surging higher, up nearly another 3% Thursday to cap roughly a 20% rally off of its recent low. Watch for a break of the 200-day moving average, which has been a headwind since last summer. In its recent quarterly earnings call, management noted early signs of demand improvement, suggesting a return to year-over-year growth in the second half of the year for memory chips.
The company will next report results on Sept. 19 after the close. Analysts are looking for earnings of 61 cents per share on revenues of $4.6 billion. When the company last reported on June 25, earnings of $1.05 beat estimates by 26 cents on a 38.6% decline in revenues.
Xilinx (XLNX)
Shares of Xilinx (NASDAQ:XLNX), a maker of field-programmable circuits, are enjoying a push up and over their 50-day moving average in a challenge of the April breakdown levels near $130. A push to the April highs would be worth a gain of roughly 20% from here. Despite headwinds, management recently raised its dividend and issued upside guidance.
The company will next report results on July 24 after the close. Analysts are looking for earnings of 95 cents per share on revenues of $852.6 million. When the company last reported on April 24, earnings of 94 cents per share missed estimates by two cents on a 29.8% rise in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.
