Chip ETFs in Focus on New Generation AI Product Launches
- Introduction of New AI Chips: Big chipmakers like Intel, AMD, and Nvidia are racing to introduce new-generation artificial intelligence chips.
- AMD's Strategic Move: AMD introduced the MI325X accelerator to challenge industry leader NVIDIA in the competitive AI semiconductor market.
- Intel's Efforts to Catch Up: Intel announced new Xeon 6 processors for high-intensity data center workloads during the Computex tech conference in Taiwan.
- Future AI Chip Developments: AMD plans to release new AI chips annually, while NVIDIA unveiled its Rubin AI platform with significant cost and energy savings.
- Investor Interest and Market Performance: Investors are closely monitoring AMD and NVIDIA for updates on AI chip developments, with AMD anticipating $4 billion in AI chip sales for 2024.
Trade with 70% Backtested Accuracy
Analyst Views on FTXL
About the author
ETF Inflow Update: FTXL, KLAC, AMKR, SWKS
FTXL Share Price Analysis: FTXL's share price has a 52-week low of $59.72 and a high of $129.89, with the last trade recorded at $121.03, indicating a stable position within its range.
Understanding ETFs: Exchange traded funds (ETFs) function like stocks, where investors buy and sell "units" that can be created or destroyed based on demand, affecting the underlying assets.
Monitoring ETF Flows: Weekly tracking of changes in shares outstanding helps identify ETFs with significant inflows or outflows, which can influence the individual components held within those ETFs.
Disclaimer on Views: The opinions expressed in the article are those of the author and do not necessarily represent the views of Nasdaq, Inc.
ETF Movers for Monday: FTXL and OMAH
ETF Performance: The VistaShares Target 15 Berkshire Select Income ETF is underperforming, down approximately 1.3% in Monday afternoon trading.
Weakest Components: Key contributors to the ETF's decline include Kroger, which fell by about 2.2%, and Coca-Cola, which decreased by around 1.4%.
Market Context: The article highlights the performance of specific ETFs and their components during the trading day.
Author's Perspective: The views expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.
Intel's Government-Supported Future: Key Considerations for ETF Investors
Political Influence on Semiconductor ETFs: Semiconductor ETFs are facing new risks due to political factors, particularly following President Trump's announcement of a significant U.S. government stake in Intel Corp, leading to debates among fund managers about the potential benefits and drawbacks of this exposure.
Intel's Impact on ETF Performance: While major ETFs like VanEck and iShares have significant holdings in Intel, the company's performance is crucial for these funds, especially as they are buoyed by Nvidia's dominance and AI optimism, despite concerns over Intel's political ties affecting its market demand.
Bullish and Bearish Perspectives: The bullish outlook suggests that government backing could stabilize Intel and enhance its market position, while the bearish view warns of potential political complications and international retaliation that could harm Intel's sales and the broader semiconductor market.
Market Stability Amid Uncertainty: Despite the political risks, the performance of major semiconductor ETFs remains steady for now, but upcoming earnings reports from Intel could significantly alter the risk profile of these investments.
TSMC, ASML, Nvidia Drag Down Chip ETFs Amid Trump-Era Policy Revival
Impact of Trade Restrictions: Semiconductor ETFs experienced significant declines following reports that the Trump administration may reimpose stricter trade restrictions on China, affecting major companies like TSMC and NVIDIA, as well as large chip ETFs such as VanEck and iShares.
Market Sensitivity to Policy Changes: The potential policy changes highlight the vulnerability of semiconductor assets to geopolitical developments, prompting investors to consider shifting towards ETFs with greater U.S. exposure or those focused on domestic chipmakers.
Skyworks Stock Heads Lower Despite Q2 Profit, Sales Victory
Financial Performance: Skyworks Solutions Inc reported second quarter FY25 revenue of $953.2 million, surpassing estimates, with an adjusted EPS of $1.24 also exceeding expectations. The company returned over $600 million to shareholders, marking its highest quarterly return ever.
Future Outlook and Leadership Changes: For Q3, Skyworks anticipates revenue between $920 million and $960 million, with a projected adjusted EPS of $1.24. Additionally, Mark Dentinger has been appointed as the new CFO effective June 2, 2025.
SA Charts: Semiconductor sales stay strong, Americas posts sequential dip in Jan
Global Semiconductor Sales: January 2024 saw worldwide semiconductor sales reach $56.5B, a 17.9% increase from the previous year, with significant growth in the Americas but a decline from December's figures.
Regional Insights and Investments: The Americas experienced a 50.7% year-on-year increase in sales, while Asia Pacific rose by 9%. Taiwan Semiconductor announced a $100B investment in the U.S. over four years to enhance its market presence.
ETF Inflow Update: FTXL, KLAC, AMKR, SWKS
FTXL Share Price Analysis: FTXL's share price has a 52-week low of $59.72 and a high of $129.89, with the last trade recorded at $121.03, indicating a stable position within its range.
Understanding ETFs: Exchange traded funds (ETFs) function like stocks, where investors buy and sell "units" that can be created or destroyed based on demand, affecting the underlying assets.
Monitoring ETF Flows: Weekly tracking of changes in shares outstanding helps identify ETFs with significant inflows or outflows, which can influence the individual components held within those ETFs.
Disclaimer on Views: The opinions expressed in the article are those of the author and do not necessarily represent the views of Nasdaq, Inc.
ETF Movers for Monday: FTXL and OMAH
ETF Performance: The VistaShares Target 15 Berkshire Select Income ETF is underperforming, down approximately 1.3% in Monday afternoon trading.
Weakest Components: Key contributors to the ETF's decline include Kroger, which fell by about 2.2%, and Coca-Cola, which decreased by around 1.4%.
Market Context: The article highlights the performance of specific ETFs and their components during the trading day.
Author's Perspective: The views expressed in the article are those of the author and do not necessarily represent Nasdaq, Inc.
Intel's Government-Supported Future: Key Considerations for ETF Investors
Political Influence on Semiconductor ETFs: Semiconductor ETFs are facing new risks due to political factors, particularly following President Trump's announcement of a significant U.S. government stake in Intel Corp, leading to debates among fund managers about the potential benefits and drawbacks of this exposure.
Intel's Impact on ETF Performance: While major ETFs like VanEck and iShares have significant holdings in Intel, the company's performance is crucial for these funds, especially as they are buoyed by Nvidia's dominance and AI optimism, despite concerns over Intel's political ties affecting its market demand.
Bullish and Bearish Perspectives: The bullish outlook suggests that government backing could stabilize Intel and enhance its market position, while the bearish view warns of potential political complications and international retaliation that could harm Intel's sales and the broader semiconductor market.
Market Stability Amid Uncertainty: Despite the political risks, the performance of major semiconductor ETFs remains steady for now, but upcoming earnings reports from Intel could significantly alter the risk profile of these investments.
TSMC, ASML, Nvidia Drag Down Chip ETFs Amid Trump-Era Policy Revival
Impact of Trade Restrictions: Semiconductor ETFs experienced significant declines following reports that the Trump administration may reimpose stricter trade restrictions on China, affecting major companies like TSMC and NVIDIA, as well as large chip ETFs such as VanEck and iShares.
Market Sensitivity to Policy Changes: The potential policy changes highlight the vulnerability of semiconductor assets to geopolitical developments, prompting investors to consider shifting towards ETFs with greater U.S. exposure or those focused on domestic chipmakers.
Skyworks Stock Heads Lower Despite Q2 Profit, Sales Victory
Financial Performance: Skyworks Solutions Inc reported second quarter FY25 revenue of $953.2 million, surpassing estimates, with an adjusted EPS of $1.24 also exceeding expectations. The company returned over $600 million to shareholders, marking its highest quarterly return ever.
Future Outlook and Leadership Changes: For Q3, Skyworks anticipates revenue between $920 million and $960 million, with a projected adjusted EPS of $1.24. Additionally, Mark Dentinger has been appointed as the new CFO effective June 2, 2025.
SA Charts: Semiconductor sales stay strong, Americas posts sequential dip in Jan
Global Semiconductor Sales: January 2024 saw worldwide semiconductor sales reach $56.5B, a 17.9% increase from the previous year, with significant growth in the Americas but a decline from December's figures.
Regional Insights and Investments: The Americas experienced a 50.7% year-on-year increase in sales, while Asia Pacific rose by 9%. Taiwan Semiconductor announced a $100B investment in the U.S. over four years to enhance its market presence.
