Semiconductor Stocks: What Are ASML, LRCX, AMAT and KLAC Doing Today?

Today, semiconductor stocks are among the growth stocks investors have their eyes on. Various key players such as ASML (NASDAQ:ASML), Lam Research (NASDAQ:LRCX), Applied Materials (NASDAQ:AMAT) and KLA Corporation (NASDAQ:KLAC) are trending higher today. These stocks are all trading in high correlation to each other, up approximately 4% at the time of writing.

AI. Circuit board. Technology background. Central Computer Processors CPU concept. Motherboard digital chip. Tech science background. Integrated communication processor. 3D illustration representing semiconductor stocks
Source: Shutterstock

This sector-specific move to the upside is one that’s worth paying attention to. Indeed, investors may note that there’s very high correlation between these stocks today. That’s for good reason, and we’ll get to that in a minute.

However, it appears the broader market is pricing in risk-on sentiment today. Growth sectors of the economy have done increasingly well amid lower bond yields in recent weeks. Additionally, surging demand expectations for semiconductors coming out of this pandemic has investors taking a look at this group of stocks.

Let’s dive into the key catalyst driving this group of stocks higher today.

Why Semiconductor Stocks Are Trading Higher Today

In the case of semiconductor equipment maker ASML, the company has some earnings news driving this stock today. The company reported Q2 earnings, which beat on the bottom line. Revenue numbers came in slightly below expectations. However, investors appear to like the fact that earnings grew by more than 40% year-over-year, alongside top-line growth of more than 20%.

Additionally, ASML reported higher-than-expected forward guidance for revenue growth. The company’s lithography systems are in focus as a key growth driver for long-term investors. It appears investors are pricing in added capacity at foundries and the boost in demand the global semiconductor shortage has provided. Accordingly, given the penchant for high-growth stocks in this risk-on environment today, ASML stock is doing well.

These impressive earnings numbers have driven the broader semiconductor index higher. Accordingly, today’s rise in Lam Research, Applied Materials and KLA have been attributed to a sympathy rally alongside ASML.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Article printed from InvestorPlace Media,

©2022 InvestorPlace Media, LLC