Several semiconductor companies took a hit in Friday’s session after Intel Corp (NASDAQ:INTC) reported worse-than-expected earnings and issued weak guidance. Goldman Sachs and Wells Fargo each lowered their price targets for Intel, to $39 and $48 respectively.
Semiconductor names have been some of the hottest stocks on the market, led by giants NVIDIA Corp (NASDAQ:NVDA) and Advanced Micro Devices Inc (NASDAQ:AMD), each up more than 100% in the last year. Super Micro Computer Inc (NASDAQ:SMCI) reported strong preliminary financial results last week, sending the stock up more than 30% and lifting most of the semiconductor names.
Because of this, Intel may have had high expectations going into its earnings report. The mad dash from major tech companies to transition to AI has driven the demand for chips to all-time highs.
The Price Action: The Direxion Daily Semiconductor Bull 3x Shares (NYSE:SOXL) traded down more than 5% on Friday’s session. Intel’s stock traded down more than 11% early in Friday’s session, a large move for the company which typically isn’t as volatile as other chip stocks in the market.
Traders seemed willing to buy the dip in other chip names, with NVIDIA and AMD recovering from its pre-market losses. Taiwan Semiconductor (NYSE:TSM) was a bright spot in the semi space, trading up nearly 1% Friday morning.
