These Semiconductor Stocks Are Surging On Upbeat Earnings News

 These Semiconductor Stocks Are Surging On Upbeat Earnings News

Semiconductor stocks are hopping again. This past week saw a bunch of chip stocks breaking out of bases and racing to all-time highs.


Chip stocks rising on upbeat earnings news on Friday included Microchip Technology (MCHP), Alpha and Omega Semiconductor (AOSL) and Synaptics (SYNA). All three delivered better-than-expected September-quarter reports late Thursday.

On the stock market today, Microchip stock rose 3.4% to close at 85.76. At the market open Friday, it broke out of a 37-week consolidation period at a buy point of 83.43, according to IBD MarketSmith charts. In intraday trading, it notched a record high of 87.19.

Chandler, Ariz.-based Microchip earned an adjusted $1.07 a share on sales of $1.65 billion in its fiscal second quarter ended Sept. 30. On a year-over-year basis, earnings rose 37% while sales climbed 26%. It also guided higher for the current quarter. Microchip makes smart, connected, and secure embedded control chips.

Semiconductor Stocks Are Rocking

Sunnyvale, Calif.-based Alpha and Omega Semiconductor earned an adjusted $1.06 a share on sales of $187 million in its fiscal first quarter ended Sept. 30. On a year-over-year basis, earnings jumped 93% while sales increased 23%. It also gave robust guidance for the current quarter.

AOSL stock popped 10.5% higher to close at 42.56 on Friday. It is nearing a buy point of 43.10 in a cup base, according to MarketSmith charts.

Elsewhere among semiconductor stocks, Synaptics spiked after its beat-and-raise quarterly report. On Friday, Synaptics stock jumped 12.8% to 249.20. Earlier in the session, it hit an all-time high of 264.50. On Oct. 28, Synaptics broke out of a flat base at a buy point of 192.09.

Other semiconductor stocks that recently broke out of base patterns include Diodes (DIOD), Macom Technology Solutions (MTSI), MaxLinear (MXL) and Nvidia (NVDA).

Some Semiconductor Stocks Falling

But not all semiconductor stocks are having a good time this earnings season. Some makers of chips for smartphones have had a rough go. Cirrus Logic (CRUS), Qorvo (QRVO) and Skyworks Solutions (SWKS) fell after their quarterly earnings reports this week.

However, wireless-chip maker Qualcomm (QCOM) delivered a better-than-expected September-quarter report late Wednesday thanks to its diversification from smartphones.

Qualcomm earned an adjusted $2.55 a share on sales of $9.34 billion in its fiscal fourth quarter ended Sept. 26. On a year-over-year basis, Qualcomm earnings jumped 76% while sales climbed 12%.

Qualcomm stock rocketed 12.7% on Thursday. On Friday, it advanced 4.5% to 163.19. Earlier in the session, it flirted with a buy point of 168.04 out of a 41-week consolidation period. In intraday trading, it hit a record high of 168.55.

Chip Industry Groups Rising

IBD’s fabless semiconductor stocks group currently ranks second out of 197 industry groups that IBD tracks. Three months ago, it ranked No. 31 and six months ago it was No. 187.

IBD’s semiconductor manufacturing group now ranks No. 24. That’s an improvement from its rank of No. 134 three months ago and No. 135 six months ago.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.


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