Semiconductor Stocks Turn Volatile As China Changes Guidelines: Here Are The Key Players

Zinger Key Points
  • AMD and Intel face volatility after China's chip guidelines, prompting investor caution.
  • Despite favorable fundamentals, Intel stock's technicals signal caution amidst market uncertainty.

Semiconductor giants Advanced Micro Devices Inc AMD and Intel Corp INTC witnessed a downturn on Monday, March 25 following China’s announcement of new guidelines, phasing out foreign microprocessors in government PCs and servers.

China’s decision to target chipmakers in favor of homegrown solutions sent shockwaves through the semiconductor market, leaving investors seeking stability amidst the turbulence. Semiconductor ETFs such as the VanEck Semiconductor ETF SMH, the iShares Semiconductor ETF SOXX and the Direxion Daily Semiconductor Bull 3x Shares ETF SOXL saw volatility as well.

In light of this volatility, we compared key players offering more value amid the uncertainty. They include Nvidia Corp NVDA, Intel, AMD, and Micron Technology Inc MU.

Fundamentals Side With Intel

P/E FwdPrice/SalesEV/Sales

Also Read: What’s Going On With AMD, Intel Stock Monday?

Fundamental analysis reveals that while Nvidia, AMD and Micron boast higher Price-to-Earnings (P/E) ratios compared to Intel. Intel also appears to be more favorably placed on Price/Sales and EV/Sales bases.

Intel Stock Technicals Mixed

Chart: Benzinga Pro

However, technical indicators paint a different picture. Intel stock demonstrates strong development within a rising trend channel in the medium to long term, indicating positive development and increasing buy interest among investors.

Yet, the stock’s current trend is considered strongly bearish, with buying pressure indicating potential future bullish movement.

Intel stock also sits below its 5, 20, and 50-day exponential moving averages, suggesting a bearish trend, The Moving Average Convergence Divergence (MACD) indicator is giving bearish indications, while the Relative Strength Index (RSI) indicates oversold conditions.

While Intel stock appears to better placed as compared to its semiconductor peers on multiple basis, technicals paint a mixed picture. While the medium-to-long term looks promising, the short-term appears bearish.

Read Next: AMD, Intel Face Setback As China Moves To Ditch Their Chips, Microsoft Windows In State Computers

Image: Shutterstock

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