Ahead Of Intel, Qualcomm, Texas Instruments Earnings, Analyst Sees 'Challenging Setup' For Chip Stocks

Some high-profile semiconductor names are scheduled to report their quarterly results this week. An analyst at KeyBanc Capital Markets isn't quite upbeat about it.

Challenging Setup:  Concerns of a correction will dominate over strong, broad-based near-term fundaments and robust results/guidance, leading to a challenging setup for earnings, KeyBanc analyst John Vinh said in a note.

"With increasing concerns regarding a cyclical correction, we don't anticipate strong results and guidance will be rewarded in terms of stock performance," the analyst said.

Related Link:  After Netflix Disappointment, Spotlight Shifts to Apple, Amazon, And Google: Here Are The Key Earnings To Watch Out For 

The quarterly results and commentary will likely reflect a strong pricing trend and robust demand trends across auto, cloud data center, and 5G infrastructure, Vinh said. Consumer-facing end markets such as smartphone, PC and IT will likely see softness, he added.

The Semiconductor Stock Ratings:  KeyBanc has an "overweight" rating and $240 price target for Texas Instruments stock.

The firm rates Silicon Labs "overweight" as well, with a $210 price target.

Vinh has the same rating and a $200 price target on Qualcomm.

KeyBanc rates Intel a "sector weight" but has no formal PT for the stock. The fair value of the stock, according to the analyst, is $50.

Earnings Schedule: 

  • Texas Instruments: Tuesday, after the close
  • Silicon Labs & Qualcomm: Wednesday, after the close
  • Intel: Thursday, after the close

The iShares Semiconductor ETF (NASDAQ: SOXX) closed Friday's session down 2.22% at $410.55, according to  BenzingaPro data. The SOXX is down 24.2% year-to-date.

Related Link:  Rosenblatt Gets Cautious On Texas Instruments, Intel Ahead Of Earnings

 

Market News and Data brought to you by Benzinga APIs

To add Benzinga News as your preferred source on Google, click here.