Semis Hold Support

Yesterday’s earnings warning from Nvidia (NVDA) caught the overall semiconductor group by surprise. After a nice rally off the lows in late December, the group had really stabilized in recent weeks, but the warning and NVDA’s subsequent 15%+ decline at the open threatened the fragile recovery. While the group finished down on the day, things didn’t get much worse after the opening bell. As shown in the chart below, while the group opened weaker, it held support at the short-term uptrend off the December lows and finished the day up nearly 2% from its early lows.

 

The same can be said for just about every stock in the semiconductor group. The table below shows the open to close percentage change for each of the sixteen stocks in the S&P 500 Semiconductor and Semiconductor Equipment Index. Of the 16 stocks listed, the only one that finished the day lower than it opened was AMD, and the other 15 stocks in the group actually rallied slightly more than 2% from their prices at the opening bell.

 

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