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☆ An options trade that wins if the red-hot chip trade cools off in the second half
▼ + stars: | 2024-06-28 | by ( Jeff Kilburg | ) www.cnbc.com time to read: +3 min

Although Micron (MU) has not had Nvidia's meteoric performance, it has been a stellar stock, doubling in the last year and up over 50% in 2024. The AI boom has buoyed memory chips higher as these chips have become a more important component for artificial intelligence accelerators. However, the possibly unrealistic bar now being set for AI earnings reports saw Micron drop more than 7% on high volume. I want to express a short-term bearish view in Micron as I believe further profit-taking will occur in the third quarter. Micron is one of the largest semiconductor companies in the world, specializing in high-bandwidth memory and storage chips.

Persons: Long Organizations: Micron, Nvidia, JPMorgan, MU, CNBC, NBC UNIVERSAL Locations: CapEx

☆ Bank of America says Broadcom's sales growth to double because of AI, raises price target even higher
▼ + stars: | 2024-06-24 | by ( Alex Harring | ) www.cnbc.com time to read: +1 min

Bank of America sees more room for Broadcom to run, with its sales growth likely to double as a result of the artificial intelligence craze. Analyst Vivek Arya hiked his price target by $150 to $2,150 while reiterating his buy rating and top-pick designation. Arya's new target implies that shares of the semiconductor stock can rally around 30% from last week's closing level. A key part of Arya's call is sales growth approximately doubling to a compound annual rate of around 13% between the 2024 and 2026 fiscal years. This will be propelled by a 24% compound annual growth rate in the AI-connected silicon and VMWare businesses, he said.

Persons: Vivek Arya, Arya, that's Organizations: of America, Broadcom, VMWare, iShares Semiconductor, Nasdaq

☆ A hedge on chip stocks if some of the profit-taking in Nvidia continues
▼ + stars: | 2024-05-31 | by ( Jeff Kilburg | ) www.cnbc.com time to read: +3 min

After the first sign this week of potential profit taking in Nvidia (NVDA) since it's monster post-earning pop, now might be the time to hedge for further downside in the semiconductor space. I want to utilize SMH (VanEck Semiconductor ETF) to express my protective and bearish strategy. However, I do have concern about the stock's "over ownership" and investors who have become conditioned to NVDA's massive earnings beats. NVDA YTD mountain Nvidia (NVDA), YTD The protective trade strategy I want to implement is to define upside risk while seeking to finance the whole option strategy which will profit if we indeed see Semi's move lower. This also serves as a short-term hedge to any and all exposure you may have to the AI theme.

Persons: SPDR, NVDA Organizations: Nvidia, VanEck Semiconductor, Semiconductor

☆ A bearish options trade that wins if the AI-led chip stock rally runs out of steam
▼ + stars: | 2024-04-16 | by ( Nishant Pant | ) www.cnbc.com time to read: +3 min

I'll discuss a bearish options hedge on a member of the chip sector that appears to be breaking down. Below is a 6-month daily chart of the iShares Semiconductor ETF (SOXX) , which monitors the chip sector. Among the semiconductor stocks, Micron (MU) stands out as a notable example. However, since securities can remain overbought for extended periods, it's important to wait for the RSI to dip below 70 before considering a bearish trade setup. The Trade Setup: The trade structure I am using here is called a "bear put spread" also known as "put debit spread".

Persons: Nishant Pant, Nishant Organizations: Nvidia, iShares Semiconductor, AMD, Broadcom, Micron, MU, YTD

☆ An options trade that seeks to capitalize on Intel weakness Friday
▼ + stars: | 2024-04-12 | by ( Jeff Kilburg | ) www.cnbc.com time to read: +2 min

This trade seeks to take advantage of the current discount and the heightened volatility being applied to Intel. INTC SOXX 5Y mountain Intel, 5 years Earlier this week, Intel unveiled its latest artificial intelligence chip, called Gaudi 3. Intel is trying to penetrate and take market share from AI leader Nvidia, which possesses nearly 80% of the market share in the AI chip market. This trade seeks to capitalize on the increase in volatility as Intel dropped nearly 4% on the open. DISCLOSURES: (Long intel and this trade) THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY .

Persons: Mike Tyson, YouTuber Jake Paul, Gaudi Organizations: Intel, AMD, Nvidia, intel Locations: China

☆ How to hedge your winning chip trade if you nailed the AI rally
▼ + stars: | 2024-03-22 | by ( Jeff Kilburg | ) www.cnbc.com time to read: +3 min

However, I want to establish an insurance trade in the event chip stocks come up for a breather short-term or reverse some of this rally. SOXX .SPX 6M mountain iShares Semiconductor ETF (SOXX) vs. the S & P 500 The continued euphoria and associated demand for artificial intelligence semiconductors has boosted several chip stocks such as Nvidia, Broadcom and AMD. These three stocks alone are collectively up 150% on a one year look back and also make up nearly 25% of iShares Semiconductor ETF (SOXX) . DISCLOSURES: (Long SOXX, Long this put spread) THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR.

Persons: Jerome Powell, Long Organizations: Federal Reserve, Semiconductor, Nvidia, Broadcom, AMD, iShares Semiconductor Locations: U.S

☆ The stock level when the parabolic Nvidia rally may finally cool off and how to trade it
▼ + stars: | 2024-03-08 | by ( Jeff Kilburg | ) www.cnbc.com time to read: +3 min

The magnitude of Nvidia's run is simply mind boggling, with the stock adding $1 trillion in market value in about two months. Trying to short this parabolic stock is what we used to call in the trading pits of Chicago, a "widowmaker." However, I believe that once Nvidia (NVDA) hits $1,000 it might actually be due to take a breather. Overbought territory Typically, an investor will buy a put if they think a stock is overbought or are concerned it will fall. That being said, Nvidia was trading at the same RSI level of 86 in early February while trading at $693, nearly $300 ago.

Persons: NVDA, Long Organizations: Nvidia, Apple, Microsoft Locations: Chicago, Downside

☆ Michael Burry of ‘The Big Short’ fame buys Amazon, Alphabet and a dozen other new stocks
▼ + stars: | 2024-02-14 | by ( Yun Li | ) www.cnbc.com time to read: +1 min

Michael Burry, best known for calling the subprime mortgage crisis, added several new stocks in the fourth quarter, including some leading tech names Amazon and Alphabet , according to a new regulatory filing. The 52-year-old's new Amazon and Alphabet positions were worth more than $4 million each at the end of 2023. The chip ETF fund was up nearly 22% in the fourth quarter. During the fourth quarter, Burry also added small positions in MGM Resorts , Advance Auto Parts , Warner Bros. The latest SEC filing from Scion Asset reflects Burry's holdings as of the end of December.

Persons: Michael Burry, Burry, Michael Lewis Organizations: Scion Asset Management, Healthcare, Oracle, Citigroup, CVS Health, Amazon, iShares Semiconductor, MGM Resorts, Advance, Parts, Warner Bros, Vital Energy, SEC, Scion Asset Locations: Mettler, Toledo, Bruker

☆ A low-cost trade that wins if the S&P 500 breaks out and heads for 5,000 next
▼ + stars: | 2024-01-19 | by ( Jeff Kilburg | ) www.cnbc.com time to read: +3 min

After a stuttering start to 2024, the S & P 500 has found its way into positive territory and the benchmark seems poised to establish a new all-time close Friday, surpassing the 4,800 level which served as resistance back in January of 2022. My optimism on U.S. equities is predicated on the continued strength of the U.S. consumer and our economy but, I believe the real reason for the S & P 500 to possibly run up and kiss 5,000 is because of the underinvested bears. SPY 5Y mountain SPDR S & P 500 (SPY), 5 years Investors will remain focused on continuous Fed messaging specific to the timing of the rate cuts in the wake of the Fed's telegraphed pivot from being hawkish to dovish in the fourth quarter. The trade: To reduce the cost of simply being long an at-the-money SPY call, I want to buy a call spread. DISCLOSURES: (Long SPY and long this call spread) THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY .

Persons: TSM Organizations: Federal Reserve, Taiwan Semiconductor Locations: dovish, SOXX

Burry also closed out bearish options against the broad S&P 500 and Nasdaq 100 Index, the filings showed. His Scion Asset Management’s biggest new position last quarter was in bearish options on an exchange-traded fund focused on semiconductors. He bought put options with a notional value of $47.4 million against the iShares Semiconductor ETF (SOXX.O), according to the filing. The filings also showed that Burry's fund no longer held puts on the Nasdaq 100 and S&P 500. Hedge fund Man Group also sold its 1.1 million shares in Nvidia, while Renaissance Technologies LLC sold its entire stake in the company.

Persons: Michael Burry, Burry, George Soros, Carolina Mandl, David Gregorio, Anna Driver, Deepa Babington Organizations: U.S, Nasdaq, iShares Semiconductor, Soros Fund Management, Society, Nvidia, Taiwan Semiconductor Manufactoring, Man, Renaissance Technologies, Tiger Global Management, Eisler Capital, Man Group, Duquesne Family Office, Thomson Locations: U.S, TSMC, New York

☆ Michael Burry reveals new bet against chip stocks after closing out winning market short
▼ + stars: | 2023-11-14 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +2 min

It is also not known whether Burry still holds the position or whether it's some sort of hedge against a long position. Those positions were winners for Burry as the stock market finished the third quarter lower. Burry is one of several hedge fund managers who correctly identified the housing bubble ahead of the 2008 financial crisis. Burry closed his previous hedge fund, known as Scion Capital Management, after the financial crisis. The hedge fund filings do not show all types of derivatives or private investments, so the full scope of Burry's positions are unknown.

Persons: Michael Burry, Burry, Michael Lewis Organizations: Scion, Management, iShares Semiconductor, Devices, Broadcom, Nvidia, Nasdaq, Burry, Scion Capital Management, Scion Asset Management, Nexstar Media Group Locations: Stellantis

☆ Stocks making the biggest moves before the bell: General Mills, Nvidia, AMD and more
▼ + stars: | 2023-06-28 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

Check out the companies making headlines in premarket trading. General Mills — Shares dropped 3.9% following mixed fiscal fourth-quarter results. The Betty Crocker and Cheerios owner beat Wall Street expectations on earnings, reporting $1.12 in adjusted earnings per share against a Refinitiv consensus estimate of $1.07 per share. The Wall Street bank said Pinterest is making the strategic move to outsource monetization to third-parties to overcome its attribution and scale challenges, including a partnership with Amazon. ZoomInfo — Shares of the software company added 3.9% in premarket trading after Needham initiated coverage of ZoomInfo with a buy rating.

Persons: Mills, Betty Crocker, Biden, Wells, Pinterest, Goldman Sachs, Morgan Stanley, Needham, ZoomInfo, Yun Li, Jesse Pound Organizations: Safeway, Nvidia, Street Journal, iShares Semiconductor, Amazon Locations: San Anselmo , California, China

☆ Wall St Week Ahead: Surging US megacap stocks leave some wondering when to cash out
▼ + stars: | 2023-06-02 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

The benchmark S&P 500 (.SPX) has risen 11.5% this year and stands at a 10-month high. The S&P 500 rose 1.45%. The recent surge in Nvidia showed how a stock can keep climbing even after posting hefty gains. At the same time, only 20.3% of S&P 500 stocks have outperformed the index on a rolling three-month basis, a record low dating back five decades, according to Ned Davis. Kotok views narrowing breadth as an ominous sign for the broader stock market, saying that equities also look less favorable in certain asset valuation metrics.

Persons: Ned Davis, Peter Tuz, Jay Hatfield, ” Hatfield, “, Brendan McDermid Michael Purves, Purves, Kevin Mahn, Refinitiv, ”, Mahn, Dow, David Kotok, Lewis Krauskopf, Ira Iosebashvili, Nick Zieminski, Diane Craft Organizations: YORK, BofA Global Research, Ned Davis Research, Chase Investment, Nvidia, Apple, Microsoft, Google, Federal Reserve, New York Stock Exchange, REUTERS, Tallbacken Capital Advisors, Nasdaq, Hennion, Walsh Asset Management, Dow Jones, Cumberland Advisors, Thomson Locations: megacap, BofA, New York City, U.S

☆ Wall St Week Ahead Surging US megacap stocks leave some wondering when to cash out
▼ + stars: | 2023-06-02 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

The benchmark S&P 500 (.SPX) has risen 11% this year and stands at a 10-month high. He is overweight megacaps, including Nvidia, Microsoft and Google-parent Alphabet (GOOGL.O). The recent surge in Nvidia showed how a stock can keep climbing even after posting hefty gains. At the same time, only 20.3% of S&P 500 stocks have outperformed the index on a rolling three-month basis, a record low dating back five decades, according to Ned Davis. In one commonly used valuation metric, the S&P 500 is trading at 18.5 times forward earnings estimates compared to its historic average of 15.6 times, according to Refinitiv Datastream.

Persons: Ned Davis, Peter Tuz, Jay Hatfield, ” Hatfield, “, Michael Purves, Purves, Kevin Mahn, Refinitiv, ”, Mahn, Dow, David Kotok, Lewis Krauskopf, Ira Iosebashvili, Nick Zieminski Organizations: YORK, BofA Global Research, Ned Davis Research, Chase Investment, Nvidia, Apple, Microsoft, Google, Tallbacken Capital Advisors, Nasdaq, Hennion, Walsh Asset Management, Dow Jones, Cumberland Advisors, Thomson Locations: megacap, BofA

☆ Wall Street sees a semiconductor industry bottom coming. Here's how we're playing the stocks
▼ + stars: | 2023-04-12 | by ( Zev Fima | ) www.cnbc.com time to read: +9 min

NVDA AMD YTD mountain Nvidia vs. AMD year to date So, the question now is: Can the rally in semis continue? To help us read the tea leaves, here's a look at what Wall Street analysts are saying about the underlying fundamentals of the industry. Evercore said a "fundamental bottom" for the semiconductor industry currently playing out in March and April "has only strengthened" recently. Analysts there believe the inventory correction that's plagued the industry in recent quarters will be largely complete by the second quarter. Bottom line While there's some variation on timing, Wall Street clearly believes a bottom is in the process of playing out in the semiconductor industry.

☆ Chip stocks posted their best quarter since 2020. What's next for the sector and why the rally may fade
▼ + stars: | 2023-04-06 | by ( Samantha Subin | ) www.cnbc.com time to read: +8 min

Chip stocks made a breathtaking comeback in the first quarter, but don't be surprised if the rally gives up some of its gains, investors warn. The semiconductor sector on Friday wrapped up its best quarter since 2020 as investors rotated back into the downtrodden industry, with names like Nvidia notching its best quarterly stretch since 2001. The recent tear in semiconductor stocks brings the sector into overbought territory versus non-financial cyclicals, said Credit Suisse's Andrew Garthwaite in a recent note. Like many investors, Niles views Nvidia as a dominant AI play despite its rich valuation . While the stock's given those gains, many investors viewed the print as a sign of a bottom.

☆ Strategists say it’s a stock picker’s market right now — and name their top picks
▼ + stars: | 2023-03-08 | by ( Zavier Ong | ) www.cnbc.com time to read: +3 min

Against this backdrop, a slew of strategists are calling it a stock picker's market and advising investors to be particularly mindful of the companies they invest in. "You really do need to have discipline, but this is definitely a stock picker's market. The SOXX, which offers investors exposure to a basket of U.S.-listed semiconductor stocks, is up more than 20% this year. She believes the current macro backdrop is a "stock picker's scenario" that calls for "an active trading environment." The stock has a current dividend yield of 2.7%, higher than the industry average of 0.8%, according to FactSet data.

☆ Citi sees chip stocks hitting 'new lows.' Here are its top picks to ride out the storm
▼ + stars: | 2023-03-07 | by ( Weizhen Tan | ) www.cnbc.com time to read: +2 min

Although chip stocks have broadly rebounded this year , Citi warns that they could be about to hit new lows as companies trim guidance. Given this "defensive stance," the analyst said Analog Devices remains its top pick in this environment, describing it as the "most defensive name." Citi also named a few semiconductor stocks to consider once the dark times are over. Analog Devices, Micron, ON Semi and GlobalFoundries are all buy-rated by the bank. The bank gives Analog Devices, ON Semi, and GlobalFoundries each around 22% upside potential.

☆ A corner of tech is up 50% from its 2022 lows — and strategists recommend these stocks to play it
▼ + stars: | 2023-02-13 | by ( Zavier Ong | ) www.cnbc.com time to read: +4 min

The semiconductor sector has seen quite a turnaround of late. Chip stocks were among the worst performers last year, with the iShares Semiconductor ETF (SOXX) shedding more than 35% of its value. Despite this, chip stocks have flown somewhat under the radar since the beginning of the year as the buzz around artificial intelligence and a recovery in Big Tech dominated investor attention. While the semiconductor sector is notorious for its cyclicality and boom-bust cycles, several Wall Street pros are urging investors to take a longer-term view. Europe stock ideas In Europe, a raft of chip stocks made Bank of America 's list of "2023 European Best Stock Ideas."

☆ Tiger-cub hedge fund Coatue slashes big Tesla bet, doubles down on chip stocks
▼ + stars: | 2022-11-14 | by ( Yun Li | ) www.cnbc.com time to read: +1 min

Coatue Management's Philippe Laffont trimmed his big Tesla holding in the third quarter, while ramping up his exposure to semiconductor stocks. The stock has shed 27% in the fourth quarter partly because Musk has been selling billions of dollars worth of Tesla shares to fund his acquisition of Twitter. The hedge fund significantly added to its Nvidia holding, making it the fifth-largest bet at the end of the third quarter, the filing showed. Coatue kept its big Moderna holding unchanged in the third quarter. The hedge fund's other top holdings included Rivian , Uber, PayPal , Amazon and Disney at the end of the third quarter.

☆ Major tech ETFs saw big inflows this week as investors look to buy the dip from rough earnings
▼ + stars: | 2022-10-28 | by ( Jesse Pound | ) www.cnbc.com time to read: +2 min

Disappointing earnings reports from some major tech stocks have caused large one-day declines this week, but investors in exchange-traded funds are still embracing the space as a whole. According to FactSet, the four biggest tech and consumer discretionary ETFs by assets have all seen positive inflows over the past week. Cumulatively, the 10 largest long-only funds have pulled in a net positive inflow of about $1.6 billion over the past week. The cash has rolled in despite big earnings misses, with Facebook parent Meta delivering arguably the ugliest performance. The iShares Semiconductor ETF (SOXX) has seen outflows of more than $66 million over the past week.

☆ A fund manager who's beaten 97% of his peers over the last 3 years shares 8 stocks he's betting on for the next 3-5 years — and breaks down the key tenets of his investing philosophy
▼ + stars: | 2022-09-21 | by ( William Edwards | ) www.businessinsider.com time to read: +4 min

Quality stocks are those that generate robust and stable profits, and have high returns on equity. In addition to having robust profit margins, Stimpson also likes firms that show strong earnings growth. 8 stocks Stimpson is betting onTwo sectors in the market with a growth tilt are technology and healthcare. He also likes semiconductor firms because he thinks they're oversold and undervalued. Four semiconductor firms he likes include: Cirrus Logic (CRUS), Ambarella (AMBA), KLA-Tencor (KLA), and Kulicke & Soffa Industries (KLIC).

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