The Zacks Analyst Blog Highlights: Intel, QUALCOMM, Micron Technology, Advanced Micro Devices, Skyworks Solutions And Apple
Zacks Investment Research | Aug 14, 2019 08:48AM ET
For Immediate Release
Chicago, IL – August 14, 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: Intel Corp. (NASDAQ:INTC) , QUALCOMM Incorporated (NASDAQ:QCOM) , Micron Technology, Inc. (NASDAQ:MU) , Advanced Micro Devices, Inc. (NASDAQ:AMD) , Skyworks Solutions, Inc. (NASDAQ:SWKS) and Apple, Inc. (NASDAQ:AAPL) .
Here are highlights from Tuesday’s Analyst Blog:
Trade War Dampens U.S. Chipmakers, Not Huawei: Here’s Why
The United States’ trade war with China intensified in May 2019 after the former blacklisted Huawei Technologies Co Ltd., restricting its trade with home-based companies over national security concerns. After initially agreeing to a partial embargo, on Aug 9, President Donald Trump announced that the U.S. government will not do business with Huawei and that he is not ready to make a trade deal with China anytime soon.
The trade restrictions on Huawei not only affect the company but also hamper revenues of several large and small-scale chip manufacturers. Since Huawei is a big consumer of these chip companies, giants like Intel Corp. have already requested the White House for permission to carry out partial trade with Huawei.
Chips Stocks Dampened by Huawei
In 2018, the United States alone contributed 6.6% of Huawei revenues, which is more than $104 billion as per the company’s annual report. The company focuses on telecommunications networks, information technology, smart devices and cloud services. It depends on several big and medium-sized American companies for sourcing chips and technology.
In 2018, Huawei spent $11 billion on purchasing components from U.S. firms including QUALCOMM Incorporated, Intel and Micron Technology, Inc., out of the $70 billion that it spent on total purchase.
Trumps’ announcement on Aug 9 dealt a strong blow to the chips stocks, though some of them rebounded before the market closed on clarifications from the White House. Advanced Micro Devices, Inc. fell nearly 2% but made up 1% before the bell. Micron Technology, Intel and Skyworks Solutions, Inc. stocks closed 2%, 2.5% and 3% lower, respectively.
AMD, Micron, Skyworks and Qualcomm shares have gained 75.7%, 32.8%, 13.8%, 22.7% and 15.6%, respectively, on a year-to-date basis. Intel share have fallen 2.8% in the same time frame. Qualcomm stocks carry a Zacks Rank #5 (Strong Sell). Whereas, Intel, AMD, Micron and Skyworks stocks carry a Zacks Rank #3 (Hold).
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