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Somewhat Bearish -25

Nvidia, Alphabet sit out megacap tech bounce as chip stocks sink - CNBC

📉 U.S. semiconductor companies struggled broadly on Friday amid mounting concerns that rising chip prices could squeeze tech margins.

🇺🇸 Nvidia and Alphabet (GOOG) sat out the megacap tech bounce, with both stocks down at least 8% in June despite sector volatility.

💻 Micron fell more than 5% on Friday after surging Thursday on blockbuster third-quarter earnings results.

📉 Sandisk dropped 10%, Arm lost nearly 4%, and Marvell declined 5% as chip stocks sold off globally.

🇪🇺 European chip stocks also fell, with ASML down 2%, Infineon down 4%, and ST Microelectronics shedding nearly 4%.

📉 SoftBank sank more than 5%, leading a broad sell-off in Asian technology stocks including SK Hynix and Samsung Electronics.

💼 OpenAI faces pressure as reports suggest it could delay its IPO until next year while struggling to secure demand at a $1 trillion valuation.

🇨🇳 The selloff extended to Greater China, with Semiconductor Manufacturing International tumbling nearly 7% alongside Tencent and Alibaba.

📱 Apple climbed 3% on Friday following price increases for its MacBook and iPad products due to higher component costs.

⚠️ Analyst Andrew Jackson noted that while Qualcomm's deal with Meta is positive for Arm, growing competition in the CPU market poses a risk.

Bullish Signals
  • Apple climbed 3% on Friday following the announcement of price increases for its MacBook and iPad products.
  • Micron saw its stock surge on Thursday following blockbuster third-quarter earnings before falling on Friday.
  • Qualcomm's new AI data center chip deal with Meta is ultimately positive for Arm through royalty payments.
Risk Factors
  • Concerns are mounting that soaring chip prices could eventually squeeze tech margins across the industry.
  • SoftBank sank more than 5%, leading a broad sell-off in Asian technology stocks.
  • OpenAI may delay its initial public offering until next year as it struggles to secure demand at a $1 trillion valuation.
  • Arm faces growing competition as Qualcomm expands more aggressively into the central processing unit market.
  • Intel shed 3%, Sandisk fell 10%, Arm lost nearly 4%, and Marvell dropped 5% in a broad sector decline.
  • Micron, which had seen its stock surge on Thursday following blockbuster third-quarter earnings, fell more than 5%.
Full Analysis
U.S. semiconductor stocks faced a broad sell-off on Friday as investors grew concerned that soaring chip prices could eventually squeeze the margins of major technology companies. While most Magnificent Seven stocks managed to buck the downtrend, Nvidia and Alphabet (GOOG) notably sat out the rally, trading flat or down despite the broader sector weakness. The decline was led by significant drops in key chip manufacturers, with Micron falling over 5% after a recent earnings surge, Sandisk dropping 10%, and Arm losing nearly 4%. European counterparts also struggled, with ASML down 2% and Infineon shedding 4%, reflecting a global sentiment shift away from the semiconductor sector. The weakness extended beyond U.S. borders to Asia and Europe, where SoftBank sank more than 5%, leading Asian tech stocks lower. Major players like SK Hynix, Samsung Electronics, TSMC, and Japanese firms Advantest and Tokyo Electron all posted declines. Additionally, concerns regarding OpenAI's potential IPO delay at a $1 trillion valuation added to the pressure on related equities. The selloff also impacted Greater China's technology sector, with chip stocks like Semiconductor Manufacturing International tumbling nearly 7%. While Apple climbed 3% following its own price increase news, the overarching narrative remains one of caution regarding rising infrastructure costs and their potential impact on future profitability for tech giants.