Stock market rally in semiconductor sector gains momentum tonight, promising an exhilarating continuation
Tech stocks are stealing the show in the ongoing earnings season, especially those in the semiconductor sector. The bullish momentum comes from STMicroelectronics's impressive Q4 earnings and a promising outlook for the year ahead. In European trading, STM's stock climbed an impressive 8%. Competitors like Infineon and Applied Materials are also enjoying a buoyant market, with gains of 3% and 4% respectively.
Q4 Performance and Outlook
STMicroelectronics boasted a net profit of $1.25 billion in the last quarter, with earnings per share jumping from $0.82 to $1.32. Analysts had predicted an average of $1.13 per share. CEO Jean-Marc Chery sees a revenue range between $16.8 to $17.8 billion for 2023, marking a projected increase of 4% to over 10%. This projection far surpasses the expectations of experts surveyed by Bloomberg, who only anticipated a marginal growth after the outstanding revenue growth in the previous year.
Intel will present its earnings report after the close of the US market today, with Wall Street predicting an average earnings of $0.20 per share and revenue of $14.49 billion for the last quarter. German semiconductor manufacturer Infineon will disclose its quarterly results on Thursday.
The Power of the Index
All the mentioned companies are components of the BÖRSE Online Chip Power Index, a 15-value index that has seen a massive 15% growth since the beginning of the year. With the index certificate WKN DA0ABM, investors can almost mirrorthe index's development. Considering the high demand for chips in the e-mobility sector, the positive effect on the index's development could last for a while.
The Bottom Line
For more details, click here. Please note that the Boersenmedien AG, the developer of the index, has commercial arrangements with Alphabeta Access Products Ltd. and Morgan Stanley & Co. International plc, who may remunerate the Boersenmedien AG.
In today's semiconductor market, STMicroelectronics, Infineon, and Applied Materials stand out as key players, thanks to their involvements in e-mobility and various critical sectors. While more information about the BÖRSE Online Chip Power Index's composition and performance isn't readily available, recent results and trends spell a potential long-term upward trend for the index, especially considering the high demand for automotive and e-mobility solutions.
- STMicroelectronics' impressive Q4 earnings, with a net profit of $1.25 billion and an EPS of $1.32, have contributed significantly to the ongoing bullish momentum in the tech stocks sector, particularly those in the semiconductor sector.
- STMicroelectronics' stock climbed an impressive 8% in European trading, while competitors like Infineon and Applied Materials also reported gains of 3% and 4% respectively, indicating a buoyant market for semiconductor stocks.
- For investors interested in mirroring the development of the semiconductor market, the BÖRSE Online Chip Power Index, which includes companies like STMicroelectronics, Infineon, and Applied Materials, could be a potential investment option, having seen a massive 15% growth since the beginning of the year.
- The BÖRSE Online Chip Power Index's composition and performance are developed by Boersenmedien AG, who have commercial arrangements with Alphabeta Access Products Ltd. and Morgan Stanley & Co. International plc, potentially impacting remuneration.
- With the high demand for chips in the e-mobility sector and the promising outlook for companies like STMicroelectronics, Infineon, and Applied Materials, the positive effect on the index's development could last for a while, suggesting a potential long-term upward trend for the index in the semiconductor market.
