close
close

Gottagopestcontrol

Trusted News & Timely Insights

Semiconductor stocks drag the technology sector down
Alabama

Semiconductor stocks drag the technology sector down

Key findings

  • The S&P 500 fell 0.3 percent on Monday, August 26, starting a trading week that will be rich in economic and earnings data.
  • Shares of Supermicro, Broadcom and Micron fell ahead of AI chip giant Nvidia’s earnings report scheduled for Wednesday afternoon.
  • Dayforce shares rose after the human resources software company launched a new employee learning platform.

The major US stock indices opened the new trading week with a mixed performance, which includes a busy calendar of corporate and economic data releases.

The latest earnings report from artificial intelligence (AI) semiconductor maker Nvidia (NVDA) is scheduled to be released on Wednesday afternoon, while investors can look ahead to key inflation and economic growth figures later in the week.

The S&P 500 lost 0.3 percent on Monday, while the Nasdaq lost 0.9 percent. The Dow hit an all-time intraday high in the morning but lost momentum later, closing with a daily gain of 0.2 percent.

The technology sector was the weakest performing sector. Semiconductor stocks posted significant losses ahead of Nvidia’s report. Shares of storage and server provider Super Micro Computer (SMCI) posted the biggest losses of any stock in the S&P 500, falling 8.3%. In its most recent quarterly report, released in early August, Supermicro missed earnings expectations as lower margins weighed on earnings. The company also announced a 10-for-1 stock split.

Chipmaker Broadcom (AVGO) announced that it has partnered with Hitachi Vantara, a data storage subsidiary of Japanese conglomerate Hitachi, to work together on hybrid cloud solutions to help companies scale AI-related processes. However, Broadcom shares failed to escape the downward pressure in the chip industry, falling 4.1% on Monday.

Meanwhile, shares of memory chip maker Micron Technology (MU) fell 3.8% after Needham cut his price target for the stock from $150 to $140. Analysts said the forecast for shipments of Micron’s DRAM and NAND memory products remained unchanged.

Shares of human resources software provider Dayforce (DAY) were the best performers on the S&P 500 on Monday, rising 4.0%. Last week, Dayforce announced the launch of a new employee training tool with AI capabilities designed to streamline the learning process. In its latest quarterly report, the company beat revenue and profit forecasts, driven by strong demand for its payroll and human capital management (HCM) services.

Jack Henry & Associates (JKHY) shares rose 2.6% after the financial technology company announced a regular quarterly dividend of 55 cents per share. Based on Monday’s closing price, the payout represents a dividend yield of 1.3%.

Shares of oil and gas exploration company EOG Resources (EOG) gained 2.5% on Monday. Analysts at Zacks Equities Research recently highlighted EOG as a strong value stock, citing the company’s solid earnings numbers and saying that untapped premium sites could improve EOG’s production prospects.

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *