Citigroup predicts a mixed outlook for US chip stocks: bullish on Micron Technology, bearish on Qualcomm.
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U.S. chip stocks fell broadly in pre-market trading, with SanDisk (SNDK.O) down 6.3%.
According to data from Odaily Odaily, US chip stocks generally fell in pre-market trading. Arm (ARM.O) fell 3.8%, SanDisk (SNDK.O) fell 6.3%, and Qualcomm (QCOM.O) fell 2.2%. Nvidia (NVDA.O) fell 1.9%, Micron Technology (MU.O) fell 5%, AMD (AMD.O) fell 2.5%, and Intel (INTC.O) fell approximately 5%.
US chip stocks continued their pullback at the open, with SanDisk falling 6.5%.
According to Mars Finance, on July 7th, based on BIT (bit.com) market data, US stocks opened with the Dow Jones Industrial Average up 0.09%, the S&P 500 down 0.22%, and the Nasdaq Composite down 0.6%. Chip stocks continued their pullback, with SanDisk (SNDK.O) down 6.5%, Western Digital (WDC.O) down 6.7%, and Micron Technology (MU.O) down 6.07%. SpaceX (SPCX.O) fell 1.7%, having officially been included in the Nasdaq 100 index today.
US-listed chip, optical communication, and storage stocks rallied across the board, with CRDO rising over 11% and Western Digital gaining over 9%.
According to BlockBeats data, on July 6th, US chip stocks collectively rallied, with AMD (AMD) up 8.13%, Broadcom (AVGO) up 5.48%, Arm (ARM) up 5.39%, Qualcomm (QCOM) up 5.15%, TSMC (TSM) up 4.81%, Intel (INTC) up 3.79%, and Marvell Technology (MRVL) up 3.70%. Optical communication concept stocks led the gains, with Credo (CRDO) up 11.14%, Astera Labs (ALAB) up 10.08%, Ciena (CIEN) up 4.57%, Coherent (COHR) up 4.53%, Applied Optoelectronics (AAOI) up 4.19%, and Corning (GLW) up 3.90%. Storage stocks rose across the board, with Western Digital (WDC) up 9.11%, Seagate Technology (STX) up 5.90%, SanDisk (SNDK) up 2.41%, and Micron Technology (MU) up 1.72%.
Morgan Stanley: Funds are rotating from chip stocks to AI cloud service providers; US stocks may struggle to reach new highs in the short term.
According to Mars Finance, Morgan Stanley strategists believe that US stocks may struggle to reach new all-time highs in the short term as investors take profits on tech stocks and rotate their assets. Strategist Wilson is bullish on hyperscale cloud service providers including Microsoft, Amazon, and Meta, believing their core businesses can support volatility in AI-related businesses. He predicts the S&P 500 will reach 8,000 points by the end of the year, with consumer discretionary, transportation, and biotechnology sectors potentially benefiting. (Cailian Press)
US chip and memory stocks rebounded in pre-market trading.
Mars Finance reports that US-listed chip and memory stocks rebounded in pre-market trading. SanDisk, Western Digital, and Seagate Technology rose over 5%, while Micron Technology gained over 3%. (Cailian Press)
South Korean chip stocks have extremely high leverage concentration; the SK Hynix leveraged ETF has assets exceeding four times its average daily trading volume.
According to Mars Finance, on July 5th, The Kobeissi Letter reported that leverage levels in South Korean chip stocks have spiraled out of control. The total assets of single-stock leveraged and inverse ETFs tracking SK Hynix are currently around $19 billion, more than four times the stock's average daily trading volume of approximately $4.5 billion this year. Meanwhile, leveraged ETFs related to Samsung have assets of approximately $12.4 billion, 176% higher than its average daily trading volume of approximately $4.5 billion. The Hong Kong-listed 2x long SK Hynix ETF has assets of approximately $13 billion, roughly twice SK Hynix's average daily trading volume, representing the largest gap among major stocks tracked by leveraged ETFs. In comparison, leveraged ETFs related to Micron (MU) have assets of approximately $9.9 billion, lower than its average daily trading volume of approximately $27.5 billion; leveraged ETFs for Tesla (TSLA) and Nvidia (NVDA) have assets of approximately $6 billion and $5.6 billion respectively, also significantly lower than their average daily trading volumes of approximately $23.6 billion and $28.8 billion. South Korean chip stocks have extremely high leverage concentration.