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Arm Holdings
priced its initial public offering at $51 a share. That’s at the top of the expected range of $47 to $51, giving the chip design company a valuation of $54.5 billion on a f…
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Arm Holding Ltd. priced its initial public offering at the high end of its expected range late Wednesday following intense interest.
The British chip-design company priced shares at $51, raising $4.87 billion, following earlier reports that Arm would be pricing its IPO at $52 a share. A source close to the deal confirmed to MarketWatch that $52 had been the expected price, but that it was reduced to $51. That puts the chip designer at just over a $52 billion valuation. Recently, Arm had stated a targeted range of $47 to $51.
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It’s nearly impossible to set foot in an Anthropologie store or click onto its homepage without wanting to instantly empty your wallet. From ethereal fashion pieces and timeless home-decor accents to dozens of quirky products like poem books, TikTok-approved beauty gifts, and so much more, the retailer is really the holy grail destination for curing all of our shopping woes. And if you’re a devout follower of the casual, bohemian vibe the brand emulates, you know exactly what we mean.
But even the most fervent Anthropologie enthusiasts can get excited about something new, and that’s where we come in. There are several stores like Anthropologie we’re loving that give off a similar aesthetic to the famed retailer — and often with even more affordable prices. From beloved clothing stores like Free People to iconic home furniture destinations like Urban Outfitters, the online store options are endless.
Whether you’re looking for classic staples, fun statement pieces, or even cool home decor, these are the places we’re shopping right now. We’re particularly obsessed with that gorgeous pearl-beaded jumper from & Other Stories and the Favorite Daughter trousers that are always sold out, but in all truth, everything is completely covetable. Keep reading to see our selections for the nine best stores to shop at if you like Anthropologie, then scope out stores like Zara, stores like Revolve, and stores like H&M.
— Additional reporting by India Yaffe and Rachel Aschenbrand
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Arm Holdings Ltd. filed its long-awaited initial public offering late Monday, following last year’s failed bid by Nvidia Corp. to acquire the U.K.-based chip architecture company.
Arm has reportedly been seeking to raise $8 billion to $10 billion at a valuation of $60 billion to $70 billion, making its IPO the biggest of the year so far, and a number of large tech companies, including Amazon.com Inc.
AMZN,
Intel Corp.
INTC,
and Nvidia
NVDA,
are reportedly in the mix to be anchor investors.
In a late Monday filing with the Securities and Exchange Commission, Arm said it was offering to list its U.S. traded shares on the Nasdaq under the ticker symbol “ARM.”
Arm, which is owned by Japan’s SoftBank Group Corp.
9984,
was the target of an unsuccessful $40 billion acquisition by Nvidia last year. After Nvidia scrubbed the deal and paid a $1.36 billion breakup charge following the U.S. Federal Trade Commission’s unanimous decision to block it, Nvidia disclosed it paid Arm $750 million for a 20-year license to its technology.
At the time of the breakup, chips sales had hit record highs in 2021, surging 26.2% to a record $555.9 billion, fueled by pandemic-triggered shortages. But the chip industry has since swung to a glut.
Arm listed Barclays, Goldman Sachs, JP Morgan, Mizuho, BofA Securities, Citigroup, and Deutsche Bank Securities among the IPO’s underwriters.
Recent reports said SoftBank was in discussions to purchase the 25% stake in Arm that it does not outright own, which is held by its Vision Fund 1, ahead of the IPO.
Read from Feb. 2022: Wall Street’s reaction to death of Nvidia-Arm deal: No duh
Arm reported net income of $524 million, or 51 cents a share, on revenue of $2.68 billion for fiscal 2023, which ended March 31, compared with net income of $549 million, or 54 cents a share, on revenue of $2.7 billion, in fiscal 2022, and $388 million, or 38 cents a share, on revenue of $2.03 billion in fiscal 2021.
Arm uses an architecture that is different from the once-standard x86 one built by Intel in the early days of computing.
The company said it has shipped more than 250 billion Arm-based chips since its started in 1990 as a joint venture between Acorn Computers, Apple
AAPL,
and VLSI Technology. In fiscal 2023, Arm said it shipped 30.6 billion chips.
The company said it is going public as the “resources required to develop leading-edge products are significant and continue to increase exponentially as manufacturing process nodes shrink.” Transistors are expressed in scales of nanometers, with design costs running about $249 million for a 7-nanometer chip and about $725 million for a 2-nm chip.
“As the world moves increasingly towards AI- and [machine language]-enabled computing, Arm will be central to this transition,” the company said in the filing. “Arm CPUs already run AI and ML workloads in billions of devices, including smartphones, cameras, digital TVs, cars and cloud data centers.”
Arm said it is working with Alphabet Inc.
GOOG,
GOOGL,
GM’s
GM,
Cruise, Mercedes-Benz
MBG,
Meta Platforms Inc.
META,
and Nvidia “to deploy Arm technology to run AI workloads.”
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SoftBank Group Corp. is reportedly in discussions to purchase the 25% stake in chip designer Arm Ltd. that is held by its Vision Fund 1, ahead of a highly anticipated IPO.
Reuters reported Sunday that Japan’s SoftBank
9984,
— which owns 75% of Arm — is negotiating a deal with VF1, the $100 billion investment fund it created in 2017, and noted that a deal could give VF1 investors a big boost after years of meager returns. Saudi Arabia’s Public Investment Fund and Abu Dhabi’s Mubadala Investment Co. are among VF1’s largest investors.
SoftBank is planning to launch a long-awaited initial public offering for British chip designer Arm as soon as September. That will likely be the biggest IPO of the year on Wall Street, aiming to raise $8 billion to $10 billion at a valuation around $60 billion to $70 billion.
A number of large tech companies, including Amazon.com Inc.
AMZN,
Intel Corp.
INTC,
and Nvidia Inc.
NVDA,
are reportedly in the mix to be anchor investors in Arm’s IPO.
Last week, SoftBank reported its tech-heavy Vision Funds turned a quarterly profit for the first time in 18 months
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Intel Corp. shares surged in the extended session Thursday after the chip maker posted a surprise profit, but while data-center sales came in better than expected, a larger beat in PC product sales drove margin improvement.
Intel
INTC,
shares surged around 8% after hours, following a 0.6% rise to close the regular session at $34.55.
The company reported second-quarter net income of $1.48 billion, or 35 cents a share, versus a loss of $454 million, or 11 cents a share, in the year-ago period. After adjusting for restructuring charges and other items, Intel reported 13 cents a share, versus net income of 28 cents a share a year ago.
Revenue fell to $12.95 billion from $15.32 billion in the year-ago period, and adjusted gross margins came in at 39.8%, the company said.
Intel had forecast an adjusted second-quarter loss of 4 cents a share on revenue of about $11.5 billion to $12.5 billion for the current period, and adjusted gross margins of about 33.2% for the quarter.
Analysts surveyed by FactSet, on average, expected a loss of 4 cents a share on revenue of $12.12 billion.
The margin beat was “largely a function of revenue,” Intel Chief Financial Officer David Zinsner told analysts on a conference call, and that revenue beat was much more pronounced in Intel client, or PC, business than it was data center.
“We had obviously beat revenue significantly, and we’ve got a good follow-through in the fixed-cost nature of our business, and so that really was what helped us outperform significantly on the gross-margin side in the second quarter,” Zinsner told analysts.
Intel posted PC-group sales of $6.8 billion and data-center sales of $4 billion, while analysts surveyed by FactSet had forecast $6.08 billion and $3.8 billion, respectively.
Before the conference call, Edward Jones analyst Logan Purk told MarketWatch in an interview following the report that most of the improvement in Intel’s gross margin came from the unexpected amount of growth in the PC business.
“The magnitude of client computing growth, and how the PC market is recovering faster than anticipated,” came as a surprise, Purk told MarketWatch. The analyst, who has a hold rating on Intel, said he expects sequential single-digit improvement in data center going forward.
Still, on the call, Intel Chief Executive Pat Gelsinger hammered home the point that Intel was wholeheartedly going after the AI market, which is expected to be dominated by Nvidia Corp.
NVDA,
and to a lesser extent, by Advanced Micro Devices Inc.
AMD,
which reports earnings on Tuesday.
“We see AI being infused in everything and there’s going to be AI chips for the edge, AI chips for the communications infrastructure, AI chips for sensing devices, for automotive devices, and we see opportunities for us both as a product provider and as a foundry and technology provider across that spectrum,” Gelsinger said.
Meanwhile, network and edge sales came in at $1.4 billion, while analysts called for $1.48 billion, and foundry services revenue rose to $232 million for the quarter, while Wall Street looked for $149.2 million.
“In the third quarter, we do obviously at the midpoint see revenue growth sequentially and so that will be helpful in terms of gross margin,” Zinsner told analysts on the call. “We expect, again, pretty good follow-through as we get that incremental revenue.”
Intel forecast third-quarter earnings of about 20 cents a share on revenue of about $12.9 billion to $13.9 billion and adjusted gross margins of about 43% for the current quarter. Analysts surveyed by FactSet had forecast third-quarter adjusted earnings of 16 cents a share on revenue of $13.22 billion.
Year to date, Intel shares have gained nearly 31%, while the PHLX Semiconductor Index
SOX,
has surged 49%, the S&P 500
SPX,
has grown 18%, the Nasdaq Composite
COMP,
has gained 34% and the Dow Jones Industrial Average
DJIA,
is up more than 6%.
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https://www.barrons.com/articles/nvidia-stock-price-ai-tesla-5af5041c
Shares of newly minted $1 trillion company
Nvidia
were taking it on the chin Monday, and investors searching for a reason should look to
Tesla
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Trading in U.S. stock option contracts has surged in 2023 as retail and institutional traders have harnessed bullish call options to chase a runaway rally in U.S. stocks, market analysts told MarketWatch.
As of Friday, 46 million option contracts linked to U.S. equity indexes, individual stocks and exchange-traded funds have traded hands every trading session on average this month, according to an analysis by Callie Cox, a U.S. equity strategist at eToro.
This means that, barring a sudden drop-off in trading activity, June is on track to be the busiest month for option traders ever, Cox said. That is particularly notable given that the summer months are typically more placid on Wall Street.
“It’s pretty incredible for a summer month. It shows how engaged investors are after such a strong rally,” said Callie Cox, a U.S. equity strategist at eToro, during an interview with MarketWatch.
Much of the demand has centered on call options: trading volume in these contracts has averaged 26 million a day so far, leaving June on track for the heaviest month of call buying since November 2021, Cox said.
Several overlapping trends have contributed to the surge in option demand, market analysts said.
Investors wary about a rally that recently carried the S&P 500 index to its highest level in 14 months have opted to buy short-dated calls. Often these are contracts tied to the S&P 500 or the index-tracking SPDR S&P 500 exchange-traded fund with less than 24 hours left until expiration, a class of options referred to as “0DTEs” for “zero days to expiration.”
Some traders see these cheap short-term bets as a particularly affordable, if risky, strategy for reaping gains as the market marches higher, according to market analysts and portfolio managers who spoke with MarketWatch.
And when stocks pull back, investors often change their strategy and instead of buying calls, opt to take advantage by buying or selling put options.
While a call represents a bet that a given index, stock or currency will rise, a put represents the opposite.
In addition to betting on calls tied to popular equity indexes and exchange-traded funds like the S&P 500 or the Invesco QQQ Trust Series 1 ETF
QQQ,
investors are also scooping up bullish options tied to Nvidia Corp. and other market leaders, hoping to maximize any returns from the artificial intelligence boom.
The Wall Street Journal reported earlier this week that trading in call options tied to shares of Nvidia Corp.
NVDA,
and two other chip stocks, Advanced Micro Devices
AMD,
and Intel Corp.,
INTC,
has surged fivefold since the beginning of the year, citing data from Cboe Global Markets, owner of the world’s largest options exchange.
But demand for calls has expanded beyond megacap technology names into areas of the market that have trailed since the start of the year, including small-cap stocks and others, which have rallied in June.
The Russell 2000
RUT,
an index that tracks small-cap stocks traded in the U.S., is up nearly 5% year-to-date. As of the end of May, it was marginally negative for the year, options experts said.
“With mega cap technology leading the indexes higher, investors started to play catch-up by trying to buy the second-tier and heavily shorted companies,” said Alon Rosin, head of equity derivatives at Oppenheimer, in emailed commentary shared with MarketWatch.
This means that investors’ rush to try to keep up with the market hasn’t only benefited hot AI-stocks.
Amy Wu Silverman, head of derivatives strategy at RBC Capital Markets, made a similar observation in a recent note to clients where she pointed out that call buying has surged for both companies expected to benefit from the AI boom, as well as stocks in an RBC basket of companies that are threatened by it — stocks like Robert Half International
RHI,
Chegg Inc.
CHGG,
and Yext Inc.
YEXT,
she said.
Silverman said heavy call buying in this group is indicative of the market’s “extreme call exuberance.”
Call buying has helped send popular indicators of positioning like the put-call ratio and skew, which measures the cost of downside protection via puts vs. demand for upside exposure via calls, to their lowest levels of the year earlier this month.
“People are reaching for upside via calls, and you’re seeing skew falling due to the fact that everybody has been buying calls,” said Mark Callahan, head of trading and a portfolio manager at Aptus Capital Advisors, during a phone interview with MarketWatch.
Callahan manages several active exchange-traded funds that require heavy option trading.
U.S. stocks have marched higher this year, with the S&P 500 rising for five straight weeks through June 16, its longest streak of weekly gains since November 2021. The Nasdaq Composite
COMP,
has seen even stronger performance, and its eight-week win streak has been heralded as the tech-heavy index’s longest rally since 2019, according to FactSet data.
The S&P 500 has risen more than 13% so far this year, while the Nasdaq has gained more than 30%. Both have erased much of their losses from 2022, which was the worst year for stocks since 2008. Last week, both the S&P 500 and Nasdaq hit their highest levels since April 2022.
However, there are some signs that the torrid rally might be in the midst of a pullback as the S&P 500, Nasdaq and Dow Jones Industrial Average
DJIA,
are all on track to finish the week lower on Friday.
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Stock futures were falling following three straight days of losses for Wall Street. Federal Reserve Chairman Jerome Powell again will be delivering testimony before Congress. His comments on Wednesday that the central bank likely would be raising rates further this year pushed markets lower.
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Chip maker
Intel
offered positive news on its foundry business Wednesday as it continues to build out new facilities to expand the custom chip-making service. Investors sold the stock anyway.
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https://www.barrons.com/articles/stock-market-movers-fb3791aa
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Intel Corp. plans to build a “huge and unprecedented” $25 billion advanced chip manufacturing plant in Israel, Prime Minister Benjamin Netanyahu announced Sunday.
The agreement in principle would see a factory in Kiryat Gat open by 2027, according to a statement from Israel’s Finance Ministry.
“This is the largest investment ever in the State of Israel,” Netanyahu’s office said in a tweet Sunday. “It is an expression of great confidence in the Israeli economy and reflects the strength of the free economy we have built, and the technological economy we’re developing here.”
Intel has operated in Israel since 1974, and has a number of facilities there.
An Intel
INTC,
spokesperson confirmed the company’s “intention to expand manufacturing capacity in Israel” in support of Chief Executive Pat Gelsinger’s “IDM 2.0” strategy, which includes expanding manufacturing capabilities around the world.
Intel is looking to reduce its reliance on Asian chip manufacturing to avoid potential snags in the global supply chain. Last week, the Santa Clara, Calif.-based company announced a $4.6 billion semiconductor assembly and test facility in Poland.
Intel shares rallied to their best week in 14 years Friday, as analysts and investors expressed excitement about opportunities for AI to drive stronger growth.
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The mother of a 6-year-old boy who shot his teacher in Virginia is expected to plead guilty in federal court Monday to using marijuana while possessing a firearm, which is illegal under U.S. law.
Deja Taylor is accused of lying about her marijuana use on a form when she bought the gun, which her son later used to shoot Abby Zwerner in her classroom. The first-grade teacher was seriously wounded and has endured multiple surgeries.
Taylor
The federal case against Taylor is separate from the charges she faces on the state level: felony child neglect and reckless storage of a firearm. A trial for those counts is set for August.
…
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Chip stocks experienced a significant surge Thursday in the wake of Nvidia Corp.’s upbeat commentary on AI-fueled demand — with one notable exception.
Shares of Intel Corp.
INTC,
were down more than 5% in afternoon trading Thursday, leading Dow Jones Industrial Average
DJIA,
laggards by a wide margin, on a day when Nvidia Corp.’s
NVDA,
stock was up 26% and the PHLX Semiconductor Index
SOX,
was ahead 6%.
Read: Chip index heads for highest close in 13 months as Nvidia momentum lifts semiconductor stocks
Nvidia delivered a stratospheric beat on its quarterly revenue outlook Wednesday afternoon, with executives discussing how spending on artificial intelligence is already starting to drive sizable financial benefits for the company. That discussion has Wall Street thinking that many other chip makers will also be able to capitalize on the same wave of interest in the hot technology — shares of Monolithic Power Systems Inc.
MPWR,
Advanced Micro Devices Inc.
AMD,
and Taiwan Semiconductor Manufacturing Co.
2330,
TSM,
all joined Nvidia in gaining by double-digit percentages in Thursday’s session.
Intel, though, was a key outlier. Nvidia’s commentary seemed to make investors more worried that Intel is behind the curve on what some see as a massive technological revolution.
Nvidia CFO on record-breaking forecast: ‘The inflection point of AI is here’
Intel’s revenue and profits from central processing units look “even more at risk” after Nvidia’s report, while Intel doesn’t have “any real” competitive position in graphics processing units or generative-AI compute, wrote Mizuho’s Jordan Klein, a desk-based analyst associated with the company’s sales team and not its research arm.
Nvidia’s earnings call “will reinforce the negative view that [Intel] and all their CPU share is a major loser and share donor to GPU, ASICs and lower power ARM design chips on the way,” Klein added.
While Nvidia GPUs typically would run alongside CPUs from either Intel or AMD, Nvidia has been making inroads in CPUs. Chief Financial Officer Colette Kress said on Nvidia’s call that the company has seen “growing momentum for Grace with both CPU-only and CPU-GPU opportunities across AI and cloud and supercomputing applications.”
Read: ‘Ride the Nvidia wave.’ Wall Street says the ‘undeniably pricey’ stock can keep roaring.
Nvidia is perceived to be ahead of the pack in AI-related computing technology, but AMD is at least in a better position than Intel, with more of a one-stop shop across CPUs and GPUs. That’s likely why AMD’s stock is riding on Nvidia’s coattails Thursday, up more than 10% in afternoon action.
AMD is “the only other real GPU supplier,” Klein wrote, though the company “could lose CPU spend in process and [has] a far way to go to catch [Nvidia].”
In his view, it “will take some time for more advanced and higher performance GPU and software platform to ramp and really drive upside potential” at AMD. “But seeing how fast and much [Nvidia] benefited, few will want to wait and see how long that takes for AMD.”
A more clear beneficiary, he noted, is Taiwan Semiconductor, whose stock was up more than 12% Thursday. You “cannot get any of these GPUs, inference, etc. without their fabs,” according to Klein.
As for Intel, Klein likes that the company is approaching a second-quarter bottom and positioned to capitalize on a personal-computer refresh, but he said its stock “feels totally stuck at best and could get shorted.”
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Things move quickly in the world of artificial intelligence. It is easy to sit back and complain about developments that could be disruptive, but sometimes investors are best served by putting emotions aside and observing new developments and how they affect markets. Could AI developments and related trends make you a lot of money?
Below is a new screen showing a group of AI-oriented companies expected to increase their sales most rapidly through 2025, based on consensus estimates among analysts polled by FactSet. Then we show expected revenue growth rates for the largest AI-oriented companies in the screen.
Over the long haul, many businesses might perform more efficiently by employing AI. Maybe this technology can create an economic revolution similar to the one that moved the majority of the working population away from agricultural labor during the 19th and 20th centuries.
Back in February, we screened 96 stocks held by five exchange-traded funds focused on AI and related industries and listed the 20 that analysts thought would rise the most over the following 12 months.
Three months is a long time for AI, and the shakeout hasn’t even started.
Read: Congress and tech seem open to regulating AI efforts, but that doesn’t mean it will happen
There is no way to predict how politicians will react to perceived or real threats of AI and machine learning. And the largest U.S. tech players are doing everything they can to employ the new technology and remain dominant. But that doesn’t mean they will grow more quickly than smaller AI-focused players.
Once again we will begin a screen with these five ETFs:
Altogether and removing duplicates, the five ETFs hold 270 stocks of companies in 23 countries. We first narrowed the list to 197 covered by at least nine analysts and for which consensus sales estimates are available through calendar 2025. We used calendar-year estimates because some companies have fiscal years that don’t match the calendar.
Here are the 20 screened AI-related companies expected by analysts to have the highest compound annual growth rates (CAGR) for sales from 2023 through 2025. Sales estimates are in millions of U.S. dollars. The list also shows which of the above five ETFs holds each stocks.
| Company | Ticker | Estimated sales – 2023 ($mil) | Estimated sales – 2024 ($mil) | Estimated sales – 2025 ($mil) | Two-year estimated sales CAGR through 2025 | Held by |
| BioXcel Therapeutics Inc. |
BTAI, |
$5 | $39 | $121 | 411.5% | WTAI |
| Luminar Technologies Inc. Class A |
LAZR, |
$86 | $266 | $588 | 161.0% | ROBT, WTAI |
| BlackBerry Ltd. |
BB, |
$685 | $769 | $1,925 | 67.6% | ROBT |
| Credo Technology Group Holding Ltd. |
CRDO, |
$183 | $259 | $363 | 40.9% | IRBO |
| SentinelOne Inc. Class A |
S, |
$619 | $881 | $1,176 | 37.9% | WTAI |
| Wolfspeed Inc. |
WOLF, |
$982 | $1,323 | $1,860 | 37.6% | WTAI |
| SK hynix Inc. |
000660, |
$18,319 | $27,899 | $34,542 | 37.3% | WTAI |
| Mobileye Global Inc. Class A |
MBLY, |
$2,109 | $2,782 | $3,920 | 36.3% | ROBT, WTAI |
| Snowflake Inc. Class A |
SNOW, |
$2,811 | $3,863 | $5,139 | 35.2% | IRBO, THNQ, WTAI |
| Lemonade Inc. |
LMND, |
$395 | $471 | $712 | 34.2% | THNQ, WTAI |
| Nio Inc. ADR Class A |
NIO, |
$11,874 | $16,733 | $21,304 | 33.9% | ROBT |
| Stem Inc. |
STEM, |
$607 | $833 | $1,055 | 31.8% | WTAI |
| Upstart Holdings Inc. |
UPST, |
$547 | $768 | $938 | 31.0% | BOTZ, WTAI |
| Cloudflare Inc. Class A |
NET, |
$1,284 | $1,669 | $2,194 | 30.7% | THNQ |
| Samsara Inc. Class A |
IOT, |
$830 | $1,062 | $1,364 | 28.2% | THNQ |
| Ambarella Inc. |
AMBA, |
$287 | $355 | $472 | 28.2% | IRBO, ROBT, THNQ, WTAI |
| iflytek Co. Ltd. Class A |
002230, |
$3,561 | $4,582 | $5,851 | 28.2% | THNQ |
| Tesla Inc. |
TSLA, |
$99,558 | $128,412 | $161,061 | 27.2% | ROBT, THNQ, WTAI |
| CrowdStrike Holdings Inc. Class A |
CRWD, |
$2,935 | $3,793 | $4,739 | 27.1% | THNQ, WTAI |
| PB Fintech Ltd. |
543390, |
$358 | $462 | $573 | 26.5% | IRBO |
| Source: FactSet | ||||||
Click the tickers for more about each company or ETF.
Click here for Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote pages.
We have screened for expected revenue growth, rather than for earnings or cash flow, because in a newer tech-oriented business area, investors are most likely to consider the top line as companies sacrifice profits to build market share.
It is important to do your own research if you consider purchasing any individual stock, to form your own opinion about a company’s ability to remain competitive over the long term. Starting from the top of the list, BioXcel Therapeutics Inc.
BTAI,
is expected to show exponential sales growth, but that is from a low expected baseline this year.
What about the largest AI-related companies held by these ETFs?
Here are the largest 20 companies in the screen by market capitalization, ranked by expected sales CAGR from 2022 through 2025. Once again the sales estimates are in millions of U.S. dollars, but the market caps are in billions.
| Company | Ticker | Estimated sales – 2023 ($mil) | Estimated sales – 2024 ($mil) | Estimated sales – 2025 $mil) | Two-year estimated sales CAGR through 2025 | Market Cap ($bil) | Held by |
| Tesla Inc. |
TSLA, |
$99,558 | $128,412 | $161,061 | 27.2% | $528 | ROBT, THNQ, WTAI |
| Nvidia Corp. |
NVDA, |
$29,839 | $36,877 | $46,154 | 24.4% | $722 | BOTZ, IRBO, ROBT, THNQ, WTAI |
| Taiwan Semiconductor Manufacturing Co. Ltd. ADR |
TSM, |
$71,434 | $86,284 | $101,112 | 19.0% | $445 | ROBT, WTAI |
| Advanced Micro Devices Inc. |
AMD, |
$22,976 | $26,823 | $30,359 | 15.0% | $163 | IRBO, ROBT, THNQ, WTAI |
| ASML Holding NV ADR |
ASML, |
$28,974 | $32,374 | $37,796 | 14.2% | $263 | THNQ, WTAI |
| Microsoft Corp. |
MSFT, |
$223,438 | $251,028 | $282,397 | 12.4% | $2,318 | IRBO, ROBT, THNQ, WTAI |
| Samsung Electronics Co. Ltd. |
005930, |
$200,595 | $227,286 | $252,129 | 12.1% | $292 | IRBO, WTAI |
| Amazon.com Inc. |
AMZN, |
$559,438 | $626,549 | $702,395 | 12.1% | $1,164 | IRBO, ROBT, THNQ, WTAI |
| Adobe Inc. |
ADBE, |
$19,470 | $21,784 | $24,276 | 11.7% | $158 | IRBO, THNQ |
| Netflix Inc. |
NFLX, |
$33,915 | $38,067 | $42,275 | 11.6% | $148 | IRBO, THNQ |
| Tencent Holdings Ltd. |
700, |
$88,727 | $99,212 | $110,556 | 11.6% | $422 | IRBO, ROBT |
| Salesforce Inc. |
CRM, |
$34,392 | $38,273 | $42,786 | 11.5% | $205 | IRBO, THNQ |
| Alphabet Inc. Class A |
GOOGL, |
$299,810 | $333,077 | $369,195 | 11.0% | $710 | IRBO, ROBT, THNQ, WTAI |
| Intel Corp. |
INTC, |
$51,060 | $57,799 | $62,675 | 10.8% | $122 | IRBO, ROBT |
| Meta Platforms Inc. Class A |
META, |
$125,901 | $139,545 | $154,259 | 10.7% | $528 | IRBO, WTAI |
| Alibaba Group Holding Ltd. ADR |
BABA, |
$134,140 | $148,206 | $162,199 | 10.0% | $235 | ROBT, THNQ |
| Texas Instruments Inc. |
TXN, |
$17,941 | $19,433 | $20,799 | 7.7% | $148 | IRBO |
| Apple Inc. |
AAPL, |
$390,845 | $416,761 | $445,956 | 6.8% | $2,706 | IRBO, WTAI |
| Siemens Aktiengesellschaft |
SIE, |
$84,681 | $89,145 | $93,925 | 5.3% | $130 | ROBT |
| Johnson & Johnson |
JNJ, |
$98,761 | $100,990 | $103,870 | 2.6% | $414 | ROBT |
| Source: FactSet | |||||||
Tech-stock picks that are small and focused: This fund invests in unsung innovators. Here are 2 top choices.
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Qualcomm Inc. shares fell in the extended session Wednesday after the chip maker said inventory issues will remain past June because of a downturn in handset demand and the company’s outlook disappointed.
After declining 2.8% to close the regular session $112.83, Qualcomm
QCOM,
shares started sliding after the release of the company’s results at Wednesday’s close, and sank to a deficit of more than 7% after hours by the time the executives’ call with analysts ended. Shares ended the extended trading session down 6.6%.
On the conference call, Qualcomm Chief Executive Cristiano Amon told analysts that the “evolving macroeconomic backdrop has resulted in further demand deterioration, particularly in handsets, at a magnitude greater than we previously forecasted.”
Earlier, Qualcomm had forecast adjusted earnings of $1.70 to $1.90 a share on revenue of $8.1 billion to $8.9 billion for the fiscal third quarter. Analysts had estimated earnings of $2.17 a share on revenue of $9.13 billion for the third quarter.
FactSet
Last quarter, Qualcomm said inventory issues would persist into June, and Wall Street pretty much accepted it. Qualcomm’s inventory problems go back to last year, when the company’s share price fell in November to lows not seen in more than two years after executives said there was up to 10 weeks of inventory in the channel, and forecast a $2 billion shortfall coming off record sales.
A drop in handset demand, however, has extended the time frame of inventory drawdowns considerably past the previously forecast end of June, the company said. As its largest business segment, Qualcomm handset sales fell 17% to $6.11 billion from a year ago.
“As a result, we’re operating under the assumption that inventory drawdown dynamics remain a significant factor for at least the next couple quarters,” Amon told analysts. “Additionally, while expectations are for a rebound in China demand in the second half of the calendar year, we have not seen evidence of meaningful recovery and are not incorporating improvements into our planning assumptions.”
The company reported fiscal second-quarter net income of $1.7 billion, or $1.52 a share, compared with $2.93 billion, or $2.57 a share, in the year-ago period. The chip maker reported adjusted earnings, which exclude stock-based compensation expenses and other items, of $2.15 a share, compared with $3.21 a share in the year-ago period. Total revenue for the quarter fell to $9.28 billion from $11.16 billion in the year-ago period.
Analysts surveyed by FactSet had forecast $2.15 a share on revenue of $9.09 billion, based on Qualcomm’s forecast of $2.05 to $2.25 a share on revenue of $8.7 billion to $9.5 billion.
In Qualcomm’s other end-market segments, auto sales rose 20% to $447 million and Internet-of-Things sales fell 24% to $1.39 billion for the second quarter, the company said.
Late Monday, auto chip supplier NXP Semiconductor NV
NXPI,
topped Wall Street expectations, and shares rallied Tuesday, while last week, another big supplier to the auto market, Texas Instruments Inc.
TXN,
said that sales to the auto industry remained strong.
Qualcomm shares already lag the broader chip sector and market, and were up only 3% year to date at Wednesday’s close. In comparison, the PHLX Semiconductor Index
SOX,
has surged 17%, the S&P 500 index
SPX,
has gained 7%, and the tech-heavy Nasdaq Composite Index
COMP,
has grown 15%.
In other chip earnings, Advanced Micro Devices Inc.
AMD,
shares dropped 9.2% Wednesday after the chip maker’s optimism for the second half of the year late Tuesday did not rub off on analysts.
And last week, Intel Corp.
INTC,
reported its largest quarterly loss ever, but saw its shares rise because PC and data-center sales, while on the decline, had come in better than expected. Intel also lowered expectations on its forecast.
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The first steps of moving in and decorating a space are fun and thrilling—it’s like mapping out a blank canvas with infinite potential. You’re excited to find the perfect bed, couch, or rug, and it’s satisfying when everything comes together. But what happens two or three years later?
Furniture and décor are much like a closet full of clothes in that it’s natural not to feel the same zeal years later. I bought a big piece of art from Etsy before deciding I absolutely couldn’t stand it months later. Within a year, my tastes had shifted to favor more moody neutrals, proving the design process is truly never-ending. But instead of completely revamping my apartment or spending thousands of dollars on new furniture, I found tiny décor swaps could have a big impact. Sometimes a small switch can change a room in the same way a new couch can.
Creating a space you actually want to be in might mean adding a sconce or two or creating mood lighting with a fancy candle. Whether it’s a new rug or a new pillow, unique home décor can go a long way. For a list of objects currently on my shortlist, keep browsing below.
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Indya Brown
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A previous version of this article included an inaccurate number for Intel’s second-quarter profit forecast. It has been updated.
Intel Corp. shares surged in the extended session Thursday, swinging from an initial loss after the chip maker topped Wall Street estimates for the quarter, and Chief Executive Pat Gelsinger assured analysts that the company’s data-center business was improving.
Intel…
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