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Highlights
- Intel Corporation (NASDAQ: INTC, INTC: US) and Advanced Micro Devices (NASDAQ: AMD, AMD: US) is drawing attention on the stock markets amid escalating geopolitical pressure.
- Intel stock plummeted by nearly two per cent, while AMD stock fell by almost eight per cent on Tuesday, March 1.
- However, it is believed that demand for semiconductors is set to increase with rapid proliferation in the tech world.
Intel Corporation (NASDAQ: INTC, INTC: US) and Advanced Micro Devices (NASDAQ: AMD, AMD: US) is drawing investors’ attention on the stock markets amid escalating geopolitical pressure.
Intel stock plummeted by nearly two per cent on Tuesday, March 1, while AMD stock fell by almost eight per cent this day.
This current decline aside, it is believed that demand for semiconductors is set to increase with rapid proliferation in the tech world. Keeping this in mind, let us see how these two semiconductor stocks are doing.
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Intel Corporation (NASDAQ: INTC, INTC: US)
Intel recently announced that it is set to acquire Tower Semiconductor (NASDAQ:TSEM) for a total cash consideration of about US$ 5.4 billion in order to expand its production capacity and tech portfolio worldwide.
The chip giant expects its full-year revenue to reach US$ 76 billion and anticipates net capital expenditure of about US$ 27 billion in 2022.
Stocks of Intel slipped by roughly 25 per cent in the last one year. The semiconductor stock closed at US$ 46.82 per share on Tuesday, March 1, noting a trading volume of 53.8 million.
Advanced Micro Devices (NASDAQ: AMD, AMD: US)
Advanced Micro Devices, on February 24, announced a new share buyback program worth US$ 8 billion in value. This program is in addition to the previous US$ 4-billion buyback program (declared in May 2021), under which it repurchased shares worth around US$ 3 billion.
The semiconductor company saw its top line surge by 49 per cent year-over-year (YoY) to US$ 4.82 billion in Q4 FY2021. However, its net income amounted to US$ 974 million in the latest quarter, down by 45 per cent YoY.
AMD stock closed at US$ 113.83 apiece on Tuesday, with 126 million shares switching hands. The semiconductor stock swelled by almost 41 per cent in the last nine months.
Also read: What's next for investors as Vroom (NASDAQ:VRM) stock declines 46.5%?
Bottomline
As the West continues to impose “toughest” sanctions against Russia in response to the Ukraine war, some market experts believe that this could lengthen the semiconductor shortage in the global market.
Hence, investors should consider all the factors impacting the semiconductor industry and related companies before investing in these stocks.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
