The semiconductor sector has continued to make impressive gains over the past month. Semiconductor stocks rose on the back of expanding applications of artificial intelligence (AI) and a new era of monetary easing. Additionally, a series of positive financial reports from prominent companies in the sector also added to the strength.
As such, VanEck Vectors Semiconductor ETF SMH, iShares Semiconductor ETF SOXX, Invesco PHLX Semiconductor ETF SOXQ, First Trust NASDAQ Semiconductor ETF FTXL, and Strive US Semiconductor ETF SHOC rose 4.5%, 0.4%, 1.8%, 2.1%, and 2.4%, respectively. , in the past month.
Let’s take a closer look at the individual earnings releases.
Focus on semiconductor profits
Intel INTC, the world’s largest chipmaker, reported a loss of 46 cents per share, wider than the Zacks Consensus Estimate of a loss of 20 cents. Revenue fell 6% year over year to $13.28 billion, slightly exceeding expectations of $13 billion. For the current quarter, Intel expected revenue of $13.3 billion to $14.3 billion and adjusted earnings of 12 cents per share.
Texas Instruments TXN reported strong third quarter 2024 results. Earnings beat the Zacks Consensus Estimate by 11 cents, but revenue lagged the like by $40 million. The company expects fourth-quarter 2024 sales to be in the range of $3.7 billion to $4.0 billion and earnings per share in the range of $1.07 to $1.29.
Lam Research LRCX exceeded revenue and earnings estimates for the first quarter of fiscal 2025. Earnings per share were 86 cents, beating the Zacks Consensus Estimate by 6 cents, and revenue of $4.17 billion slightly beat the estimate of $4.05 billion. The company expects second quarter 2025 sales of $4.3 billion (+/- $300 million) and earnings per share of 87 cents (+/- 10 cents).
Taiwan Semiconductor Manufacturing Co., Ltd. TSM reported strong financial results for the third quarter of 2024. The company reported earnings per ADR of $1.94, which beat the Zacks Consensus Estimate of $1.74. Sales rose 36% year over year to $23.5 billion, exceeding expectations of $22.72 billion. The company expects fourth-quarter revenue to rise 35% year-over-year to $26.1 billion to $26.9 billion.
Advanced Micro Devices AMD reported earnings of 92 cents per share, beating the Zacks Consensus Estimate by a penny. Revenue came in at $6.82 billion, just above the consensus mark of $6.71 million. AMD expects Q4 2024 revenue to be $7.5 billion (+/-$300 million).
Qualcomm QCOM reported fourth-quarter 2024 earnings per share of $2.69, beating the Zacks Consensus Estimate by 13 cents. Sales were $10.24 billion, slightly above expectations of $9.9 billion. The company expects first quarter fiscal 2025 sales to be in the range of $10.5 billion to $11.3 billion and earnings per share in the range of $2.85 to $3.05.
story continues
VanEck Vector Semiconductor ETF (SMH)
The VanEck Vectors Semiconductor ETF provides exposure to 26 companies involved in semiconductor manufacturing and equipment by tracking the MVIS US Listed Semiconductor 25 Index. The company manages $25.4 billion worth of assets and charges 35 bps in annual fees and expenses. The six companies in focus hold a 33.4% share in the basket.
The VanEck Vectors Semiconductor ETF is heavily traded, with daily trading volume of approximately 6 million shares. It has a Zacks ETF Rank #1 (Strong Buy) and a high-risk outlook.
iShares Semiconductor ETF (SOXX)
The iShares Semiconductor ETF follows the NYSE Semiconductor Index and provides exposure to U.S. companies that design, manufacture, and sell semiconductors. The company has 30 securities in its basket, and the six featured companies together account for 33.4% of its assets.
The iShares Semiconductor ETF has accumulated $14.4 billion in assets and trades approximately 3 million shares per day. This product charges investors 35 bps per year in fees and has a Zacks ETF Rank #1 for High Risk Outlook (read: Leveraged ETFs for Long-Term Investors).
Invesco PHLX Semiconductor ETF (SOXQ)
The Invesco PHLX Semiconductor ETF tracks the PHLX Semiconductor Sector Index and has a basket of 30 stocks. The six notable companies collectively account for a 28.6% share of the basket.
The Invesco PHLX Semiconductor ETF has accumulated $510.2 million in assets. Annual fees are 19 bps and average daily trading volume is 405,000 shares. SOXQ FTXL is a Zacks ETF Rank #1.
First Trust Nasdaq Semiconductor ETF (FTXL)
The First Trust Nasdaq Semiconductor ETF provides exposure to the most liquid U.S. semiconductor securities based on volatility, value, and growth by tracking the Nasdaq US Smart Semiconductor Index. FTXL has 31 stocks in its basket, and the six companies in focus have a combined 26.8% share.
The First Trust Nasdaq Semiconductor ETF has total assets under management of $1.4 billion. The average trading volume is light at about 28,000 shares, and the expense ratio is 0.60%. FTXL carries a Zacks ETF Rank #1 (Read: What lies ahead for semiconductor ETFs: boom or gloom?).
Strive US Semiconductor ETF (SHOC)
The Strive US Semiconductor ETF seeks broad market exposure to the US semiconductor sector. It follows the Bloomberg US Listed Semiconductor Select Total Return Index, whose basket includes 32 stocks, with the focused companies having a total share of 22.5%.
The Strive US Semiconductor ETF has $81.4 million in assets under management and an annual fee of 40 bps. It trades an average of 27,000 shares per day and ranks #1 on the Zacks ETF Rank.
Want the latest recommendations from Zacks Investment Research? Today you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Intel Corporation (INTC): Free Stock Analysis Report
Qualcomm Inc. (QCOM): Free stock price analysis report
Texas Instruments Inc. (TXN): Free Stock Analysis Report
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
Lam Research Corporation (LRCX): Free Stock Analysis Report
Taiwan Semiconductor Manufacturing Co., Ltd. (TSM): Free Stock Analysis Report
VanEck Semiconductor ETF (SMH): ETF Research Report
iShares Semiconductor ETF (SOXX): ETF Research Report
First Trust Nasdaq Semiconductor ETF (FTXL): ETF Research Report
Invesco PHLX Semiconductor ETF (SOXQ): ETF Research Report
Strive US Semiconductor ETF (SHOC): ETF Research Report
Click here to read this article on Zacks.com.
Zacks Investment Research
