Latest news with #PHLXSemiconductorSectorIndex
Yahoo
3 days ago
- Business
- Yahoo
Nvidia, AMD, Other Chip Stocks Rise on Hopes China Export Restrictions Could Ease
Semiconductor stocks rose, lifted by optimism that trade discussions Monday between U.S. and China officials could lead to reduced export curbs. White House National Economic Council Director Kevin Hassett told CNBC he expects a deal structured around rare earth minerals and semiconductors. However, Hassett said he doesn't expect the U.S. to lift restrictions on the sale of Nvidia H20 chips in stocks rose Monday as a White House official indicated restrictions on chip exports to China could be lessened as a result of trade talks taking place in London. Officials from Washington and Beijing intended to discuss the release of rare earth minerals to the U.S. and the expansion of Chinese access to American-made semiconductors, White House National Economic Council Director Kevin Hassett said on CNBC. 'I expect it to be a short meeting with a big, strong handshake,' Hassett said. President Donald Trump spoke with China President Xi Jinping on the phone last week. Nvidia (NVDA) shares were recently up about 0.8%, while chipmaking rivals Advanced Micro Devices (AMD) and Intel (INTC) added 3.5% and 2.8%, respectively. The PHLX Semiconductor Sector Index (SOX) gained more than 2%. (Read Investopedia's full coverage of Monday's trading here.) Hassett said the U.S. does not expect to reduce restrictions on the sale of Nvidia's H20 chip in China, which the Trump administration effectively barred earlier this year. Nvidia CEO Jensen Huang, who is also in London for London Tech Week, has called the export curbs a 'failure.' Read the original article on Investopedia Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Should You Invest in the Invesco PHLX Semiconductor ETF (SOXQ)?
Launched on 06/11/2021, the Invesco PHLX Semiconductor ETF (SOXQ) is a passively managed exchange traded fund designed to provide a broad exposure to the Technology - Semiconductors segment of the equity market. An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors. Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Technology - Semiconductors is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%. The fund is sponsored by Invesco. It has amassed assets over $471.14 million, making it one of the average sized ETFs attempting to match the performance of the Technology - Semiconductors segment of the equity market. SOXQ seeks to match the performance of the PHLX SEMICONDUCTOR SECTOR INDEX before fees and expenses. The PHLX Semiconductor Sector Index measures the performance of the 30 largest U.S.-listed securities of companies engaged in the semiconductor business. Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same. Annual operating expenses for this ETF are 0.19%, making it one of the least expensive products in the space. It has a 12-month trailing dividend yield of 0.67%. It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis. This ETF has heaviest allocation in the Information Technology sector--about 100% of the portfolio. Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 11.95% of total assets, followed by Broadcom Inc (AVGO) and Taiwan Semiconductor Manufacturing Co Ltd Adr (TSM). The top 10 holdings account for about 60.63% of total assets under management. So far this year, SOXQ has gained about 1.40%, and is down about -4.36% in the last one year (as of 06/09/2025). During this past 52-week period, the fund has traded between $28.07 and $46.54. The ETF has a beta of 1.52 and standard deviation of 37.08% for the trailing three-year period. With about 30 holdings, it has more concentrated exposure than peers. Invesco PHLX Semiconductor ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, SOXQ is an excellent option for investors seeking exposure to the Technology ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well. IShares Semiconductor ETF (SOXX) tracks PHLX SOX Semiconductor Sector Index and the VanEck Semiconductor ETF (SMH) tracks MVIS US Listed Semiconductor 25 Index. IShares Semiconductor ETF has $12.33 billion in assets, VanEck Semiconductor ETF has $23.71 billion. SOXX has an expense ratio of 0.35% and SMH charges 0.35%. To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco PHLX Semiconductor ETF (SOXQ): ETF Research Reports NVIDIA Corporation (NVDA) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report VanEck Semiconductor ETF (SMH): ETF Research Reports iShares Semiconductor ETF (SOXX): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
03-04-2025
- Business
- Yahoo
These Chip Stocks Could Outperform Others in an Economic Downturn, Citi Says
Analog Devices and Texas Instruments are two chip stocks that have historically outperformed others during economic downturns, Citi said. Analog Devices is the bank's "top pick," amid concerns sweeping new tariffs announced by President Trump Wednesday could raise the risk of a recession. While the impact of Trump's tariffs is 'virtually impossible to assess completely," a recession would hurt firms across the semiconductor industry, the analysts chipmakers Texas Instruments (TXN) and Analog Devices (ADI) could be positioned to outperform other semiconductor stocks during an economic downturn, Citi analysts said Thursday. High-end analog companies have historically fared better during a downturn than other types of semiconductor firms, Citi said. Analog Devices is the bank's 'top pick," amid concerns sweeping new tariffs announced by President Trump Wednesday could raise the risk of a recession. While the impact of the Trump administration's tariffs on the semiconductor industry is 'virtually impossible to assess completely," given the diversity and complexity of semiconductor supply chains, "if these tariffs cause a recession, we believe it would be negative for all semi stocks and could result in at least 20% more downside," they said. Shares of Analog Devices fell over 9% Thursday, while Texas Instruments fell close to 8%. Other chips stocks also tumbled, dragging the PHLX Semiconductor Sector Index (SOX) down nearly 10% amid a broad-based decline. (Read Investopedia's live coverage of today's markets here.) Read the original article on Investopedia Sign in to access your portfolio
Yahoo
24-03-2025
- Business
- Yahoo
AMD, Nvidia Lead Chip-Stock Rally as Semiconductor Tariff Worries Ease
Advanced Micro Devices, Nvidia, and other chip stocks rallied Monday. The move higher follows reports the White House may not announce tariffs targeting the semiconductor industry. Chip stocks have had a rough start to 2025 amid tariff worries, as well as concerns about companies' commitment to investing in AI Micro Devices (AMD), Nvidia (NVDA), and other chip stocks rallied Monday following reports the Trump administration may not target the semiconductor industry as part of the tariffs scheduled to take effect on April 2. AMD shares were up nearly 8% in recent trading, making it one of the best-performing stocks in the S&P 500. Nvidia shares climbed close to 4%, while NXP Semiconductors (NXPI) added 5%. Micron Technology (MU) and Qualcomm (QCOM) shares were also higher, with the PHLX Semiconductor Sector Index (SOX) climbing over 3%. Over the weekend, The Wall Street Journal reported that tariffs targeting specific sectors such as automobiles, pharmaceuticals, and semiconductors are unlikely to be announced on April 2. Reciprocal taxes on targeted nations are still expected to go into effect. Worries that semiconductors could be subject to tariffs of 25% or more, as Trump previously suggested, have weighed on chip stocks in recent weeks, with the SOX index down 5% for 2025 so far. Investors also have been wary further export curbs could drag on chip sales. The emergence of a lower-cost model from Chinese AI startup DeepSeek has also raised concerns about how much Big Tech firms will invest in AI infrastructure. However, many of America's biggest tech giants recently announced plans to boost their spending, with Amazon saying it expects to spend more than $100 billion in capital expenditures in 2025, following similar announcements from Google parent Alphabet (GOOGL), Microsoft (MSFT), and Meta Platforms (META). Read the original article on Investopedia Sign in to access your portfolio
