"The bullish argument is that prices are finally catching up with improving underlying fundamentals. One panelist pointed to strong Q1 earnings, with overall growth near 29% and tech earnings exceeding 40%, which was well above expectations."
"Wolfe Research called chips 'overbought, extended, overhyped' and questioned whether 60 to 70% monthly gains are sustainable. A separate caller flagged a thesis-change risk for NVIDIA that Alphabet's TPUs and Amazon's Trainium chips could challenge NVIDIA's dominance."
In April, semiconductor stocks experienced significant gains, with speculative names leading the rally while larger companies lagged. Strong Q1 earnings, particularly in tech, indicated a growth of nearly 29%, driven by substantial hyperscaler data center spending. Micron Technology's reasonable valuation and positive revenue guidance were highlighted, while NVIDIA's recent pullback was seen as a buying opportunity. However, concerns about overbought conditions and potential competition from Alphabet and Amazon raised questions about the sustainability of these gains.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]