AMD leads chip sector decline; SOX off 0.5%

Rambus

01/07/2024 18:21

** Shares in Advanced Micro Devices Inc  AMD.O  dropping 3.7% on
Mon, leading declines in Philadelphia semiconductor index
 .SOX , off 0.5%
    ** Bernstein Research analyst Stacy Rasgon in a research
note on Mon examines SOX outperformance vs broader market with
SOX up ~30% YTD vs S&P 500  .SPX  ~14% gain. His note did not
refer to Mon's moves 
    ** Rasgon pointed to sector valuations ~20-year highs with
P/FE for SOX ~35x
    ** Rasgon also told Reuters investor expectations are high
going into 2H 2024: "As we move into the back half you probably
have to put up or shut up"
    ** Semis have benefited handsomely from boom in artificial
intelligence demand but Rasgon writes valuations still >30x
excluding top AI beneficiaries Nvidia  NVDA.O , Broadcom
 AVGO.O , Marvell Technology  MRVL.O , AMD, Intel  INTC.O  
    ** On Mon, AMD eyeing biggest one-day pct drop since June
10. AMD pared earlier losses to trade $156.61 vs $153.64 session
low 
    ** Other big SOX decliners on Mon included Entegris
 ENTG.O , Rambus  RMBS.O  off >2% and NXP Semiconductor
 NXPI.O , Wolfspeed  WOLF.N  off nearly 2%. NVDA dipping 0.2%
    ** YTD Nvidia is biggest gainer in SOX up ~149%, WOLF is
biggest decliner down ~49% followed by INTC's ~39% drop, AMD
middle-of-the-pack up ~6% YTD
    ** Rasgon's "outperform" ratings include, AVGO, NVDA. Stocks
rated "market perform" include AMD, INTC, NXPI 

 (Reporting By Sinéad Carew)
 ((sinead.carew@thomsonreuters.com; +13322191897;))