Semiconductor Stocks Rise On Micron, STMicroelectronics, Taiwan Semiconductor News

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Micron Technology (MU), STMicroelectronics (STM) and Taiwan Semiconductor Manufacturing (TSM) have provided fresh data that the chip industry rebound is strengthening. Semiconductor stocks rose broadly on Friday.




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Early Friday, Taiwan Semi said its December sales rose 13.6% vs. a year earlier, after November sales rallied 15.7%. The chip foundry plans to report fourth-quarter results next Thursday. Analysts expect the chipmaker to earn 94 cents per U.S. share, up 29% year over year, on sales of $12.98 billion, up 25%, in the December quarter.

Also Friday, STMicroelectronics announced better-than-expected preliminary sales for the fourth quarter. The European chipmaker said December-quarter revenue totaled $3.24 billion, up 18% year over year. It previously guided to sales of $2.99 billion. STMicroelectronics plans to post its official fourth-quarter results on Jan. 28.

Late Thursday, memory-chip maker Micron delivered a beat-and-raise fiscal first-quarter report. The Boise, Idaho-based company earned an adjusted 78 cents a share, up 63% year over year, on sales of $5.77 billion, up 12%, in the quarter ended Dec. 3. For the current quarter, Micron expects to earn an adjusted 75 cents a share, up 67%, on sales of $5.8 billion, up 21%.

Semiconductor Stocks Pop On Upbeat Reports

In morning trading on the stock market today, the Philadelphia semiconductor index known as SOX rose 1.2%. Among individual semiconductor stocks, Micron climbed 2%, near 80.70. Taiwan Semi increased 1.5%, near 123.25. STMicroelectronics advanced 2.2%, near 40.95.

Micron is benefiting from an improving market for DRAM and Nand flash memory chips. STMicroelectronics cited strong sales of chips for personal electronics and automobiles for its outperformance. And Taiwan Semiconductor is seeing heightened activity from smartphone chipmakers and other fabless semiconductor firms.

The news is also positive for semiconductor stocks in the chip-gear segment. Semiconductor equipment stocks have rallied recently on heightened capital spending plans. Among chip-gear stocks surging on Friday included Applied Materials (AMAT), ASML (ASML) and KLA (KLAC).

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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