Chip stocks, including Nvidia, 'have ways to go to the downside'

In a Thursday note to clients, analysts at Lynx Equity Strategies said the firm believes semiconductor chip stocks, including NVIDIA earnings release, which has resulted in the stock declining premarket Thursday.

"As we had previewed, our call was to sit out TSM's earnings event and wait for pull-back in TSM and SOX," Lynx wrote."SOX's sell-off yesterday, triggered by ASML's weak orders/outlook, is a good beginning.""We expected a catalyst to tip semis over the edge. And it did. ASML was the catalyst," added the firm."The TSM call today puts further pressure on the SOX as management lowered Semis outlook.

"The high-multiple names fell particularly hard. TSM's positive comments on AI may help them stabilize somewhat, but we think these names, including NVDA, have ways to go to the downside."Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.

Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.would like to remind you that the data contained in this website is not necessarily real-time nor accurate.

It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Intel Introduces Gaudi 3 Chip to Compete with Nvidia in AI Chip MarketIntel aims to challenge Nvidia's dominance in the AI chip market with its new Gaudi 3 chip, which offers improved power efficiency and faster AI model processing. The chip comes in various configurations and can be used for training or deploying models in different applications.
Source: NBCLA - 🏆 319. / 59 Read more »