The Zacks Analyst Blog Highlights: ACM Research, Cirrus Logic, Amkor, Synaptics And Qorvo
Zacks Investment Research | Dec 15, 2019 08:21PM ET
For Immediate Release
Chicago, IL –December 16, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: ACM Research, Inc. (NASDAQ:ACMR) , Cirrus Logic, Inc. (NASDAQ:CRUS) , Amkor Technology, Inc. (NASDAQ:AMKR) , Synaptics Inc. (NASDAQ:SYNA) and Qorvo, Inc. (NASDAQ:QRVO) .
Here are highlights from Friday’s Analyst Blog:
Chip Stock to Buy on Reports of U.S.-China Trade Agreement
Both the United States and China seem to have moved closer toward concluding a trade pact. After all, President Trump himself highlighted on a “big deal” happening with China, and even multiple sources confirmed a delay in tariff imposition on Chinese imports scheduled on Dec 15.
Completion of the phase one deal undoubtedly will drive semiconductor stocks higher, as these have significant exposure to the Chinese market.
A “Big Deal” Reportedly Makes Way
Dec 12, seems to have brought a series of good news for the Wall Street. Trump tweeted that the US is “Getting VERY close to a BIG DEAL with China. They want it, and so do we!”
The Guardian cited that a source has informed that “the written agreement is still being formulated, but they have reached an agreement in principle.”
In fact, Bloomberg reported that Trump has given the settlement his approval. As a part of the agreement, the United States will likely reduce existing tariffs on $360 billion of Chinese goods and delay the 15% tariff imposition scheduled on Dec 15. China too has reportedly agreed to buy agricultural goods of $40 billion in return of the tariff reduction and delay.
Multiple sources flashed these positive developments and instilled optimism among investors. This in turn boosted the S&P 500 and the Nasdaq Composite indexes to close at new record highs. The major benchmarks reached intraday records, for the first time since Nov 27.
Chip Stocks to Rally
The 17-month long U.S.-China trade war has weighed on chipmakers heavily. Companies like Texas Instruments (NASDAQ:TXN) and Nvidia had seen their stocks declining by nearly 5% on a single day due to the tariff tussle. American semiconductor firms depend largely on Chinese firms for the sale of their finished products.
According to a Morgan Stanley (NYSE:MS) strategist, chipmakers generate more than 50% of their revenues from China. Almost 13% of Micron’s revenues in the first six months of this year came from Huawei. But with the blacklisting of Huawei, Micron (NASDAQ:MU) lost its valuable customers and sales were affected. Micron and similar stocks that cater to Huawei Technologies also trended down. However, shares of Micron rose 3.5% on Dec 12 on reports of a deal.
The news flashes also boosted chipmaker stocks and pushed both VanEck Vectors Semiconductor ETF Zacks Investment Research
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