Cirrus Logic (NASDAQ:CRUS) Stock, Quote.Headers.trade-ideas

Cirrus Logic

Cirrus Logic Inc is a provider of integrated circuits for audio and voice signal processing applications. The firm's products are organized into two streams: portable audio products, and HPMS Products. These products include aAmplifiers, codecs, smart codecs, analog-to-digital converters, digital-to-analog converters and standalone digital signal processors, Camera controllers, haptics and sensing solutions, and battery and power ICs. Roughly half of the firm's revenue is generated in China, with the rest coming from the United States, Europe, South Korea, and countries across the world.

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CRUS

Cirrus Logic Inc. (NASDAQ: CRUS) reported first-quarter fiscal 2025 adjusted earnings per share of $1.12, which surpassed the Zacks Consensus Estimate by 80.7%. Also, the bottom line expanded 67.2% from the prior-year quarter&#39;s 67 cents.

Cirrus Logic&#39;s Q1 Earnings &amp; Revenues Beat, Rise Y/Y

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Wall Street could go from strength to strength as the index futures point to another session in the green as investors seek to put the worst behind. Volatility continued to drop, as evidenced by another sharp slide in the CBOE Volatility Index, which is now approaching pre-sell-off levels.

US Stocks Set To Extend Gains Despite Mixed Earnings, VIX Dips Back Toward Pre-Sell-Off Levels: Analyst Says Pullback Is A &#39;Growth Scare&#39; And Not &#39;Calamity&#39;

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U.S. stock markets saw a strong recovery on Tuesday, with both the S&amp;P 500 and the Nasdaq 100 climbing over 2%, nearly offsetting Monday’s losses. Investors took advantage of recent volatility to buy the dip, showing continued confidence in the U.S. economy’s ability to avoid a recession. 

Wall Street Rebounds After Selloff, VIX Falls, Dollar Surges Against Yen: What&#39;s Driving Markets Tuesday?

Cirrus Logic Inc

Crust Network

Cirrus Logic's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRUS#NYSE">CRUS</a>) short percent of float has risen 10.03% since its last report. The company recently reported that it has 1.18 million shares sold short, which is 3.29% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.82 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Cirrus Logic Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1726159516_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Cirrus Logic has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.
<h3>Comparing Cirrus Logic's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Cirrus Logic's peer group average for short interest as a percentage of float is 4.10%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Looking Into Cirrus Logic's Recent Short Interest

Cirrus Logic's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRUS#NYSE">CRUS</a>) short percent of float has fallen 4.78% since its last report. The company recently reported that it has 926 thousand shares sold short, which is 2.59% of all regular shares that are available for trading. Based on its trading volume, it would take traders 1.92 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Cirrus Logic Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1723649416_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Cirrus Logic has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Cirrus Logic's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Cirrus Logic's peer group average for short interest as a percentage of float is 4.19%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

(CRUS) - Analyzing Cirrus Logic's Short Interest

A substantial insider activity was disclosed on August 13, as Dougherty, SVP at Cirrus Logic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRUS#NASDAQ">CRUS</a>), reported the exercise of a large sell of company stock options.
What Happened: Dougherty, SVP at Cirrus Logic, made a strategic move by exercising stock options for 9,203 shares of CRUS as detailed in a Form 4 filing on Tuesday with the <a href="https://www.sec.gov/Archives/edgar/data/0000772406/000127390224000070//Archives/edgar/data/772406/000127390224000070/0001273902-24-000070-index.htm">U.S. Securities and Exchange Commission</a>. The transaction value amounted to $569,710.
As of Wednesday morning, Cirrus Logic shares are up by 0.25%, with a current price of $138.0. This implies that Dougherty's 9,203 shares have a value of $569,710.
<h3>Delving into Cirrus Logic's Background</h3>
Cirrus Logic Inc is a provider of integrated circuits for audio and voice signal processing applications. The firm's products are organized into two streams: portable audio products, and HPMS Products. These products include aAmplifiers, codecs, smart codecs, analog-to-digital converters, digital-to-analog converters and standalone digital signal processors, Camera controllers, haptics and sensing solutions, and battery and power ICs. Roughly half of the firm's revenue is generated in China, with the rest coming from the United States, Europe, South Korea, and countries across the world.
<h3>Key Indicators: Cirrus Logic's Financial Health</h3>
Positive Revenue Trend: Examining Cirrus Logic's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 17.98% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.
Analyzing Profitability Metrics:
<ul>
<li>
Gross Margin: The company maintains a high gross margin of 50.51%, indicating strong cost management and profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): Cirrus Logic's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.79.
</li>
</ul>
Debt Management: Cirrus Logic's debt-to-equity ratio is below the industry average at 0.08, reflecting a lower dependency on debt financing and a more conservative financial approach.
Valuation Analysis:
<ul>
<li>
Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 25.59, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
</li>
<li>
Price to Sales (P/S) Ratio: The P/S ratio of 4.16 is lower than the industry average, implying a discounted valuation for Cirrus Logic's stock in relation to sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): With an EV/EBITDA ratio lower than industry averages at 15.62, Cirrus Logic could be considered undervalued.
</li>
</ul>
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
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<h3>Why Insider Activity Matters in Finance</h3>
While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.
Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
<h3>Exploring Key Transaction Codes</h3>
Surveying the realm of stock transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000772406">Check Out The Full List Of Cirrus Logic's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Trades

Major Decision: Justin E Dougherty Exercises Options, Realizing $569K At Cirrus Logic

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Shares of semiconductor and chip stocks are trading higher amid an overall market rebound after softer-than-expected jobless claims possibly alleviated some US economic concerns.

Keybanc analyst John Vinh maintains Cirrus Logic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRUS#NASDAQ">CRUS</a>) with a Overweight and raises the price target from $155 to $165.

Price Target

Keybanc Maintains Overweight on Cirrus Logic, Raises Price Target to $165

Cirrus Logic Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/crus#NASDAQ">CRUS</a>) reported first-quarter fiscal 2025 adjusted earnings per share of $1.12, which surpassed the Zacks Consensus Estimate by 80.7%. Also, the bottom line expanded 67.2% from the prior-year quarter&#39;s 67 cents.
Total revenues of $374 million beat the Zacks Consensus Estimate by 17.7% and soared 18% year over year. The uptick was driven primarily by stronger-than-anticipated shipments into the smartphone market.
The company&#39;s largest customer accounted for 88% of total revenues in the fiscal first quarter.
Following the announcement, the company&#39;s shares gained 11.9% in aftermarket trading on Aug 6, 2024. The stock has rallied 39.1% in the past year compared with the sub-industry&#39;s growth of 37.7%.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/02/73622.jpg?v=1205545805" />
Image Source: Zacks Investment Research
<h3>Segment Details</h3>
This Texas-based company rearranged its reportable segments and created separate categories, High-Performance Mixed-Signal and Audio in the fourth quarter of fiscal 2021. Cirrus Logic is expanding into other applications such as laptops, gaming, tablets and AR/VR.
CRUS&#39; High-Performance Mixed-Signal segment includes a few of its non-audio products. The segment, which contributed 41% to total revenues in the fiscal first quarter, rose 27.9% year over year to $155 million.
The Audio segment&#39;s sales grew 11.8% to $218.9 million and contributed 59% to total revenues.
In the fiscal first quarter, our estimates for the High-Performance Mixed-Signal and Audio segments were pegged at $188.6 million and $124.5 million, respectively.
<div class="chart_embed">
<h3>Cirrus Logic, Inc. Price, Consensus and EPS Surprise</h3>
<h3><img alt="Cirrus Logic, Inc. Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/f9/1723039523.png" style="height:265px; width:580px" title="" /></h3>
Cirrus Logic, Inc. price-consensus-eps-surprise-chart | Cirrus Logic, Inc. Quote
</div>
<h3>Margins</h3>
Non-GAAP gross margin was 50.6% compared with 50.4% in the prior year quarter.
Cirrus Logic&#39;s non-GAAP operating expenses rose 3.7% year over year to $118 million due to increasing variable compensation.
Non-GAAP operating income of $71.2 million grew 55.2% year over year. Non-GAAP operating profit margin improved to 19% from 14.5%.
<h3>Balance Sheet and Cash Flow</h3>
The company exited the fiscal first quarter with cash and marketable securities of $517 million compared with $388.1 million in the prior-year period.
As of Jun 29, 2024, accounts receivables were $190.1 million compared with $286 million in the previous-year quarter.
In the fiscal first quarter, CRUS generated $87.2 million as net cash from operations against $39.8 million as net cash used from operations in the prior-year quarter. Free cash flow was $77 million in the quarter under review.
The company repurchased 361,218 shares worth $41 million in the reported quarter. As of Jun 29, 2024, it had $274.1 million worth of shares remaining under its existing share repurchase authorization.
<h3>Fiscal Q2 Guidance</h3>
Management projects revenues between $490 million and $550 million.
Combined R&amp;D and SG&amp;A are anticipated to be between $149 million and $155 million, respectively.
The gross margin is expected to be in the range of 50-52%.
Non-GAAP operating expenses are estimated to be in the band of $125-$130 million.
<h3>Zacks Rank</h3>
Cirrus Logic currently carries a Zacks Rank #2 (Buy).
<h3>Performance of Other Companies</h3>
BlackBerry&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bb#NYSE">BB</a>) first-quarter fiscal 2025 adjusted loss per share of 3 cents was narrower than the company&#39;s estimate of a loss of 4-6 cents. In the year-ago quarter, it reported non-GAAP earnings of 6 cents per share. The Zacks Consensus Estimate was pegged at a loss of 4 cents per share.
Shares of BB have lost 53% in the past year.
Badger Meter, Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bmi#NYSE">BMI</a>) reported earnings per share of $1.12 for second-quarter 2024, beating the Zacks Consensus Estimate by 14.3%. Also, the bottom line compared favorably with the year-ago quarter&#39;s EPS of 76 cents.
Shares of BMI have gained 18.2% in the past year.
SAP SE (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sap#NYSE">SAP</a>) reported second-quarter 2024 non-IFRS earnings of &euro;1.10 ($1.18) per share, climbing 59% from the year-ago quarter&#39;s levels. The Zacks Consensus Estimate was pegged at $1.01.
In the past year, shares of SAP have gained 50.8%.
<a href="https://www.zacks.com/stock/news/2318203/cirrus-logic-s-crus-q1-earnings-revenues-beat-rise-y-y?cid=CS-BENZ-FT-analyst_blog|earnings_article-2318203">To read this article on Zacks.com click here.</a>

Cirrus Logic's Q1 Earnings & Revenues Beat, Rise Y/Y

Cirrus Logic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRUS#NASDAQ">CRUS</a>) underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $158.75, a high estimate of $175.00, and a low estimate of $140.00. Witnessing a positive shift, the current average has risen by 38.04% from the previous average price target of $115.00.
<img src="https://www.benzinga.com/files/images/story/2024/1723050276_0.png" alt="price target chart" />
<h2>Understanding Analyst Ratings: A Comprehensive Breakdown</h2>
In examining recent analyst actions, we gain insights into how financial experts perceive Cirrus Logic. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Tom O'Malley</td>
<td>Barclays</td>
<td>Raises</td>
<td>Overweight</td>
<td>$140.00</td>
<td>$110.00</td>
</tr>
<tr>
<td>Tore Svanberg</td>
<td>Stifel</td>
<td>Raises</td>
<td>Buy</td>
<td>$165.00</td>
<td>$110.00</td>
</tr>
<tr>
<td>Christopher Rolland</td>
<td>Susquehanna</td>
<td>Raises</td>
<td>Positive</td>
<td>$175.00</td>
<td>$120.00</td>
</tr>
<tr>
<td>John Vinh</td>
<td>Keybanc</td>
<td>Raises</td>
<td>Overweight</td>
<td>$155.00</td>
<td>$120.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Cirrus Logic. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Cirrus Logic compared to the broader market.</li>
<li>Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Cirrus Logic's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Cirrus Logic's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/CRUS/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Cirrus Logic analyst ratings.</a>
<h2>About Cirrus Logic</h2>
Cirrus Logic Inc is a provider of integrated circuits for audio and voice signal processing applications. The firm's products are organized into two streams: portable audio products, and HPMS Products. These products include aAmplifiers, codecs, smart codecs, analog-to-digital converters, digital-to-analog converters and standalone digital signal processors, Camera controllers, haptics and sensing solutions, and battery and power ICs. Roughly half of the firm's revenue is generated in China, with the rest coming from the United States, Europe, South Korea, and countries across the world.
<h3>A Deep Dive into Cirrus Logic's Financials</h3>
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Revenue Growth: Cirrus Logic's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -0.27%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 12.06%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Cirrus Logic's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.48%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Cirrus Logic's ROA stands out, surpassing industry averages. With an impressive ROA of 2.02%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Cirrus Logic's debt-to-equity ratio is below the industry average. With a ratio of 0.09, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
<h2>The Basics of Analyst Ratings</h2>
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter. 
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

The Analyst Landscape: 4 Takes On Cirrus Logic

Barclays analyst Tom O'Malley maintains Cirrus Logic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRUS#NASDAQ">CRUS</a>) with a Overweight and raises the price target from $110 to $140.

Barclays Maintains Overweight on Cirrus Logic, Raises Price Target to $140

Cirrus Logic shares are trading higher after the company reported better-than-expected Q1 financial results and issued Q2 revenue guidance above estimates.

Wall Street could go from strength to strength as the index futures point to another session in the green as investors seek to put the worst behind. Volatility continued to drop, as evidenced by another sharp slide in the CBOE Volatility Index, which is now approaching pre-sell-off levels. <a href="https://www.benzinga.com/news/earnings/24/08/40213937/why-ai-server-maker-super-micro-computers-stock-is-plummeting-over-12-in-premarket">Earnings news of the day has been mixed,</a> with the Dow Jones Industrials likely to take a hit from negative reactions to earnings reports from Walt Disney Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) and Amgen, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMGN#NASDAQ">AMGN</a>).
Super Micro Computer, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>) may weigh down on AI-levered stocks as traders sold the AI server maker due to margin contraction. That said, the broader sentiment appears to be positive as traders pile into beaten-down stocks to position themselves for a strong rebound they factor in for later this year.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>+1.50%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>+1.22%</td>
</tr>
<tr>
<td>Dow</td>
<td>+0.85%</td>
</tr>
<tr>
<td>R2K</td>
<td>+1.74%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">In premarket trading on Wednesday,&nbsp;the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) gained 1.30% to $528.95, and the&nbsp;Invesco QQQ ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) jumped 1.58% to $446.48, according to&nbsp;<a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.</figcaption></figure>
Cues From Last Session:
Stocks rebounded from multi-week lows and launched into a rally as traders scrambled to pick bargains across sectors. The market slowly got over the trauma inflicted by weakening domestic economic fundamentals and the selling set in motion by the unwinding of the yen carry trades.
The major averages opened mostly lower and saw some indecision in early trading. They took off, benefiting from across-the-board buying, and hovered in positive territory all through the remainder of the session. The gains were led by real-estate stocks. 
Small-caps outperformed their bigger peers, with the Russell 2,000 Index ending 1.23% higher for the day.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Performance (+/)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>+1.03%</td>
<td>16,366.85</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>+1.04%</td>
<td>5,240.03</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>+0.76%</td>
<td>38,997.66</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>+1.23%</td>
<td>2,064.30</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption"> Insights From Analysts: Following Tuesday&#8217;s comeback, Fund Strat said the rebound by equities is very constructive and strongly supports the idea the &#8216;worst of the selling is behind us,&#8217; according to excerpts of the note shared on X, formerly Twitter. Tom Lee, Head Of Research at the firm, said in a separate post that it was a &#8220;rough 3 days of relentless selling but instead of breaking equity markets, VIX falling, BOJ pausing hikes, stocks finding footing.&#8221; &#8220;Seems more &#8216;growth scare&#8217; not calamity.&#8221; George Smith, portfolio strategist at LPL Financial, said dips, pullbacks and corrections of 10% or more are a &#8220;normal and healthy part of any bull market.&#8221; Falling back on historical data, Smith noted that on average, stocks experience a pullback of over 5% over three times per year and a correction of 10% or more around once per year, even in positive years. &#8220;We believe that how common these occurrences are should provide comfort to equity investors, allowing them to be patient, stay invested, and most importantly, to not panic,&#8221; he added. Upcoming Economic Data: The Energy Information Administration will release its weekly petroleum status report at 10:30 a.m. EDT. The Federal Reserve is scheduled to release its report on June consumer credit at 3 p.m. EDT. Economists, on average, expect the outstanding consumer credit to decline from $11.3 billion in May to $9.7 billion in June. See also: <a href="https://www.benzinga.com/money/best-futures-trading-software">Best Futures Trading Software</a> Stocks In Focus: Airbnb, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ABNB#NASDAQ">ABNB</a>) fell over 16% <a href="https://www.benzinga.com/premarket">in premarket trading</a> following its quarterly results, while Super Micro plunged over 14%, also on earnings. The other stocks moving on earnings are Devon Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DVN#NYSE">DVN</a>) (up over 4.50%), Amgen (down over 4.50%), Cirrus Logic, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRUS#NASDAQ">CRUS</a>) (up nearly 12%), Exelixis, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EXEL#NASDAQ">EXEL</a>) (up over 6.50%), Fortinet, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTNT#NASDAQ">FTNT</a>) (up over 16%), Illumina, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ILMN#NASDAQ">ILMN</a>) (up over 6%), Tripadvisor, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TRIP#NASDAQ">TRIP</a>) (down over 16%), Reddit, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDDT#NYSE">RDDT</a>) (down over 6.50%), Rivian Automotive, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) (down nearly 8%), Sunrun Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RUN#NASDAQ">RUN</a>) (up over 12%), Trex Company, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TREX#NYSE">TREX</a>) (down nearly 17%), and Wynn Resorts, Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WYNN#NASDAQ">WYNN</a>) (up over 4.50%). CVS Health Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVS#NYSE">CVS</a>), Shopify Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHOP#NYSE">SHOP</a>), Lyft, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LYFT#NASDAQ">LYFT</a>), Disney and Warner Music Group Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WMG#NASDAQ">WMG</a>)are among the key companies due to <a href="https://www.benzinga.com/calendars/earnings">release their earnings reports ahead of the market opening</a>. Those reporting after the close are AppLovin Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APP#NASDAQ">APP</a>), Bumble Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BMBL#NASDAQ">BMBL</a>), Beyond Meat, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BYND#NASDAQ">BYND</a>), Blink Charging Co. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BLNK#NASDAQ">BLNK</a>), Fastly, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FSLY#NYSE">FSLY</a>), Forward Air Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FWRD#NASDAQ">FWRD</a>), HubSpot, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HUBS#NYSE">HUBS</a>), Kulicke and Soffa Industries, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KLIC#NASDAQ">KLIC</a>), Marathon Oil Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MRO#NYSE">MRO</a>), Monster Beverage Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MNST#NASDAQ">MNST</a>), Occidental Petroleum Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>), Robinhood Markets, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HOOD#NASDAQ">HOOD</a>) and Warner Bros. Discovery, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WBD#NASDAQ">WBD</a>). Commodities, Bonds And Global Equity Markets: Crude oil futures rose sharply, extending the gains from the previous session, and gold futures rebounded, while the yield on the 10-year Treasury note rose 4.9 basis points to 3.936%. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) pushed up about 4%, past the $57K mark. Asian markets climbed across the board, led by the Taiwanese, South Korean, Singaporean and Hong Kong markets. The Australian and Chinese markets underperformed with much more modest gains, with the latter stymied by weak export data that offset the rebound in imports. European stocks also rallied hard in early trading. Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40212775/move-over-yen-yuan-carry-trades-could-be-next-ticking-bomb-warns-strategists-but-it">Move Over Yen, Yuan Carry Trades Could Be Next Ticking Bomb, Warns Strategists: &#8216;But It&#8217;s Below The Danger Levels We Monitor&#8217;</a></figcaption></figure>
Image generated using AI via Midjourney

US Stocks Set To Extend Gains Despite Mixed Earnings, VIX Dips Back Toward Pre-Sell-Off Levels: Analyst Says Pullback Is A 'Growth Scare' And Not 'Calamity'

Cirrus Logic Sees Q2 Revenue $490M-$550M Vs $318.707M Est.

Cirrus Logic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRUS#NASDAQ">CRUS</a>) reported quarterly earnings of $1.12 per share which beat the analyst consensus estimate of $0.61 by 83.61 percent. The company reported quarterly sales of $374.026 million which beat the analyst consensus estimate of $318.707 million by 17.36 percent. This is a 17.98 percent increase over sales of $317.016 million the same period last year.

Cirrus Logic Q1 2025 Adj. EPS $1.12 Beats $0.61 Estimate, Sales $374.026M Beat $318.707M Estimate

U.S. stock markets saw a strong recovery on Tuesday, with both the S&amp;P 500 and the Nasdaq 100 climbing over 2%, nearly offsetting Monday&#8217;s losses. Investors took advantage of recent volatility to buy the dip, showing continued confidence in the U.S. economy&#8217;s ability to avoid a recession. 
Gains were observed in both small-cap and blue-chip stocks, reflecting broad improvement in market sentiment.
The CBOE Volatility Index (VIX), often referred to as the market&#8217;s fear gauge, decreased by almost 40% on Tuesday after spiking 65% on Monday. 
According to the FedWatch Tool, the likelihood of a 50-basis-point interest rate cut decreased to 90% Monday to 64% Tuesday. 
As traders reassess Fed rate cuts, Treasury yields increased during the day, with the 10-year yield rising by 11 basis points to 3.9% and the two-year yield climbing 9 basis points to 4.01%.
The rebound of the U.S. dollar was supported by rising yields and diminished expectations of a larger Federal Reserve rate cut in September. The dollar increased by 0.8% against the low-yielding Japanese yen, breaking a streak of five consecutive days of losses.
In terms of macroeconomic data, the day was relatively quiet, with only June&#8217;s trade figures making news. The U.S. trade deficit narrowed to $73.1 billion in June 2024 from a revised 20-month high of $75 billion in May, slightly above market forecasts of a $72.5-billion gap. Exports increased by 1.5% to $265.9 billion, the second-highest on record, while imports grew by a more modest 0.6% to $339 billion.
Gold and oil prices both decreased by 0.7% and 0.8%, respectively, marking their fourth consecutive session of declines.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rebounded by 4.9% after experiencing a 7% drop on Monday.
<h3 class="wp-block-heading">Tuesday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day %chg</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>18,312.03</td>
<td>2.3%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,295.41</td>
<td>2.1%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,081.01</td>
<td>1.9%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>39,301.11</td>
<td>1.5%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 1:55 p.m. ET </figcaption></figure>
According to <a href="https://www.benzinga.com/pro/?utm_source=BZprocontent080624&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was trading 2.2% higher to $528.42.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;rose 1.7% to $393.21.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 2.4% to $445.63.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) rose 1.9% to $206.06.</li>
<li>All 11 sectors of the S&amp;P 500 saw gains, with the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) leading the way, increasing by 3.1%. The Health Care Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>) witnessed the smallest gain, up 1.4%.</li>
</ul>
<h3 class="wp-block-heading">Tuesday&#8217;s Stock Movers</h3>
<ul>
<li>Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) rallied over 6%, snapping three straight session of losses. </li>
<li>Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>) soared over 5%, marking its best one-day surge in a month. </li>
</ul>
Stocks reacting to company earnings included: 
<ul>
<li>ADTRAN Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADTN#NASDAQ">ADTN</a>), down by nearly 18%, </li>
<li>Caterpillar, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAT#NYSE">CAT</a>), up 3.8%,</li>
<li>Constellation Energy Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NASDAQ">CEG</a>), up 6.9%,</li>
<li>CSX Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSX#NASDAQ">CSX</a>), up 3.7%,</li>
<li>Duke Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DUK#NYSE">DUK</a>), up 2.3%,</li>
<li>Expeditors International of Washington, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EXPD#NYSE">EXPD</a>), down 4.4%,</li>
<li>Fox Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FOXA#NASDAQ">FOXA</a>), up 6.7%,</li>
<li>GLOBALFOUNDRIES Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GFS#NASDAQ">GFS</a>), down 1%,</li>
<li>Hyatt Hotels Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/H#NYSE">H</a>), down 0.7%,</li>
<li>Lucid Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LCID#NASDAQ">LCID</a>) up 9%, </li>
<li>Molson Coors Beverage Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAP#NYSE">TAP</a>), up 6.8%,</li>
<li>Palantir Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>) up 12.3%, </li>
<li>Uber Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>), up 11%</li>
<li>Teradata Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDC#NYSE">TDC</a>) down about 14%,</li>
<li>WK Kellogg Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KLG#NYSE">KLG</a>) down 6.7%,</li>
<li>Yum! Brands, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/YUM#NYSE">YUM</a>) up 3.7%,</li>
<li>ZoomInfo Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZI#NASDAQ">ZI</a>), down nearly 19%.</li>
</ul>
Companies reporting after the close are Airbnb, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ABNB#NASDAQ">ABNB</a>), Coupang, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPNG#NYSE">CPNG</a>), Devon Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DVN#NYSE">DVN</a>), Amgen, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMGN#NASDAQ">AMGN</a>), Cirrus Logic, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRUS#NASDAQ">CRUS</a>), Exelixis, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EXEL#NASDAQ">EXEL</a>), Fortinet, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTNT#NASDAQ">FTNT</a>), GoPro, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GPRO#NASDAQ">GPRO</a>), Illumina, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ILMN#NASDAQ">ILMN</a>), Jack in the Box Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JACK#NASDAQ">JACK</a>), IAC Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IAC#NASDAQ">IAC</a>), Tripadvisor, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TRIP#NASDAQ">TRIP</a>), Reddit, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDDT#NYSE">RDDT</a>), Rivian Automotive, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>), Sunrun Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RUN#NASDAQ">RUN</a>), Wynn Resorts, Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WYNN#NASDAQ">WYNN</a>) and Super Micro Computer, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>).
Read now: 
<ul>
<li><a href="https://www.benzinga.com/news/earnings/24/08/40196554/warren-buffetts-oil-bet-hits-slick-patch-death-cross-looms-over-occidental-before-q2-earnings">Warren Buffett&#8217;s Oil Bet Hits Slick Patch: Death Cross Looms Over Occidental Before Q2 Earnings</a></li>
</ul>
Photo via Shutterstock.

Wall Street Rebounds After Selloff, VIX Falls, Dollar Surges Against Yen: What's Driving Markets Tuesday?

U.S. stocks look to bounce back on Tuesday following an across-the-board sell-off in the previous session. Strategists say<a href="https://www.benzinga.com/markets/equities/24/08/40179293/strategist-warns-theres-a-serious-collapse-thats-coming-after-mondays-global-market-crash-tons-a"> all the yen carry trades haven&#8217;t been unwound yet,</a> which raises the specter of incremental weakness. That said, positive reactions to earnings from tech players such as Palantir Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>) and Navitas Semiconductor Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVTS#NASDAQ">NVTS</a>) could buoy sentiment.
Tech stocks are reversing course, riding on these positive earnings. The CBOE Volatility Index, widely known as VIX, has pulled back notably toward the 32 level. Given the absence of any major catalysts, volatility will likely remain contained. 
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Futures</td>
<td>Performance (+/-)</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>+0.86%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>+0.82%</td>
</tr>
<tr>
<td>Dow</td>
<td>+0.71%</td>
</tr>
<tr>
<td>R2K</td>
<td>+0.75%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">In premarket trading on Tuesday,&nbsp;the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) gained 0.78% to $521.40, and the&nbsp;Invesco QQQ ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) rose 0.82% to $438.95, according to&nbsp;<a href="https://benzinga.grsm.io/lxquj26b2sag" target="_blank" rel="noreferrer noopener">Benzinga Pro data</a>.</figcaption></figure>
Cues From Last Session:
Wall Street closed Monday&#8217;s session notably lower, although off its intraday lows. The global equity market plunge set in motion by the Japanese market on Monday spilled over into the U.S. The major averages opened notably lower but a report that showed that the service sector moved into expansion territory helped them trim some of the losses. Yet the averages closed the session sharply lower.
The S&amp;P 500 and the Nasdaq Composite fell for a third straight session, settling at three-month lows, while the Dow Jones Industrial Average retreated to its lowest since June 14.
The sell-off was across the board, with the IT, communication services and consumer discretionary stocks plunging hard.
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Index</td>
<td>Performance (+/)</td>
<td>Value</td>
</tr>
<tr>
<td>Nasdaq Composite</td>
<td>-3.43%</td>
<td>16,200.08</td>
</tr>
<tr>
<td>S&amp;P 500 Index</td>
<td>-3.00%</td>
<td>5,186.33</td>
</tr>
<tr>
<td>Dow Industrials</td>
<td>-2.60%</td>
<td>38,703.27</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>-3.33%</td>
<td>2,039.16</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption"> Insights From Analysts: </figcaption></figure>
The recent correction is healthy for the market, according to WisdomTree Senior Economist and Wharton professor Jeremy Siegel. Volatility has finally returned to the market, the economist said, adding that this equity risk is what creates a premium long-term return.
A correction of 5-10% from the highs is healthy, Siegel said. &#8220;I would be more worried had the market continued to surge higher with no correction and created more bubble-like conditions,&#8221; he said.
&#8220;In the short run, if the Fed does not indicate that it will react soon, the outlook is very unsettled.&#8221;
Carson Group&#8217;s Chief Market Strategist Ryan Detrick sees light at the end of the tunnel. Drawing on historical data, the strategist noted that when the S&amp;P 500 Index falls by at least 1% on Thursday, Friday, and Monday, strong returns are typically observed three months later. Historically, this pattern has resulted in gains 90% of the time, with an average increase of around 10%.
&#8220;A year later up 18 of 21 and up 22.5% on avg,&#8221; he added.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">S&amp;P 500 down at least 1% on a Thursday, Friday, and Monday? Pretty strong returns across the board. 3 months later higher 90% of the time and up nearly 10% on avg. A year later up 18 of 21 and up 22.5% on avg. Huh. Good chance those times felt pretty bad also. <a href="https://t.co/srKtgx1vqx">pic.twitter.com/srKtgx1vqx</a>
&mdash; Ryan Detrick, CMT (@RyanDetrick) <a href="https://twitter.com/RyanDetrick/status/1820678336277856286?ref_src=twsrc%5Etfw">August 6, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Upcoming Economic Data:
<ul>
<li>The Commerce Department is scheduled to release its trade balance report for June at 8:30 a.m. EDT. Economists, on average, expect a narrowing of the trade deficit from $75.1 billion in May to $72.5 in June.</li>
<li>The Treasury will auction three-year notes at 11:30 a.m. EDT.</li>
</ul>
Stocks In Focus:
<ul>
<li>Palantir climbed over 7% <a href="https://www.benzinga.com/premarket">in premarket trading</a> following the company&#8217;s quarterly results.</li>
<li>The other stocks moving on earnings are Lucid Group, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LCID#NASDAQ">LCID</a>) (up 9%), ADTRAN Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ADTN#NASDAQ">ADTN</a>) (down about 7.50%), Navitas Semiconductor (up about 5%), ZoomInfo Technologies Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZI#NASDAQ">ZI</a>) (down nearly 15%), Teradata Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDC#NYSE">TDC</a>) (down about 8%) and Yum China Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/YUMC#NASDAQ">YUMC</a>) (up over 8%) </li>
<li>Caterpillar, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CAT#NYSE">CAT</a>), Constellation Energy Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NASDAQ">CEG</a>), Duke Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DUK#NYSE">DUK</a>), Expeditors International of Washington, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EXPD#NYSE">EXPD</a>), Fox Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FOXA#NASDAQ">FOXA</a>), GLOBALFOUNDRIES Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GFS#NASDAQ">GFS</a>), Hyatt Hotels Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/H#NYSE">H</a>), Molson Coors Beverage Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TAP#NYSE">TAP</a>), Uber Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>), WK Kellogg Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KLG#NYSE">KLG</a>) and Yum! Brands, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/YUM#NYSE">YUM</a>) are among the key companies due to <a href="https://www.benzinga.com/calendars/earnings">release their earnings reports ahead of the market opening</a>.</li>
<li>Those reporting after the close are Airbnb, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ABNB#NASDAQ">ABNB</a>), Coupang, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CPNG#NYSE">CPNG</a>), Devon Energy Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DVN#NYSE">DVN</a>), Amgen, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMGN#NASDAQ">AMGN</a>), Cirrus Logic, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRUS#NASDAQ">CRUS</a>), Exelixis, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EXEL#NASDAQ">EXEL</a>), Fortinet, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTNT#NASDAQ">FTNT</a>), GoPro, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GPRO#NASDAQ">GPRO</a>), Illumina, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ILMN#NASDAQ">ILMN</a>), Jack in the Box Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JACK#NASDAQ">JACK</a>), IAC Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IAC#NASDAQ">IAC</a>), Tripadvisor, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TRIP#NASDAQ">TRIP</a>), Reddit, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDDT#NYSE">RDDT</a>), Rivian Automotive, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>), Sunrun Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RUN#NASDAQ">RUN</a>), Wynn Resorts, Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WYNN#NASDAQ">WYNN</a>) and Super Micro Computer, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>).</li>
</ul>
Commodities, Bonds And Global Equity Markets:
Crude oil futures rebounded after three straight sessions of declines and gold futures also advanced moderately, while the 10-year benchmark Treasury note yield rose 5.4 basis points to 3.836%.
Bitcoin (CRYPTO: BTC<a href="https://www.benzinga.com/markets/cryptocurrency/24/08/40153940/bitcoin-crashes-below-50k-briefly-crypto-market-records-over-1b-in-liquidations-in-24-hour">)</a> climbed over 6.5% and approached the $55K level.
In Asia, the sentiment was mixed. The Japanese market, which was the epicenter of Monday&#8217;s sell-off, rebounded strongly, with the Nikkei 225 average climbing over 10%. The Taiwanese and South Korean markets also rose notably. The Chinese market advanced, although the gain was much more modest, and the Australian market finished strong amid the nation&#8217;s central bank deciding to keep interest rates unchanged. On the other hand, the Indian, Malaysian, Hong Kong and New Zealand markets moved to the downside.
European stocks were lower in early trading amid volatility. 
Read Next:
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<li><a href="https://www.benzinga.com/markets/equities/24/08/40178601/global-market-crash-sparks-reflection-on-jeff-bezos-2000-dotcom-comments-after-amazons-80-plunge">Global Market Crash Sparks Reflection On Jeff Bezos&#8217; 2000 Dotcom Comments After Amazon&#8217;s 80% Plunge: &#8216;We&#8217;re A Company That Wants To Be Weighed, And Over Time We Will Be&#8217;</a></li>
</ul>
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US Stocks Set To Open Higher After Monday's Crash, VIX Plummets: Analyst Says Would Have Worried If Market Surged Higher Without Correction

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Shares of chip stocks are trading lower amid overall market weakness. Recent earnings from large names in the sector may also be weighing on the sector.

Stifel analyst Tore Svanberg maintains Cirrus Logic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRUS#NASDAQ">CRUS</a>) with a Buy and raises the price target from $110 to $165.

Stifel Maintains Buy on Cirrus Logic, Raises Price Target to $165

Susquehanna analyst Christopher Rolland maintains Cirrus Logic (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRUS#NASDAQ">CRUS</a>) with a Positive and raises the price target from $120 to $175.

Susquehanna Maintains Positive on Cirrus Logic, Raises Price Target to $175

Shares of Helen of Troy Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HELE#NASDAQ">HELE</a>) fell sharply during Tuesday's session after the company reported soft first-quarter earnings and <a href="https://www.benzinga.com/quote/HELE/earnings">lowered its FY25 guidance</a>.
Helen of Troy reported quarterly earnings of 99 cents per share which missed the analyst consensus estimate of $1.59. The company reported quarterly sales of $416.85 million which missed the analyst consensus estimate of $446.22 million, according to data from <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a>.
Helen of Troy shares dipped 30.3% to $62.06 on Tuesday.
Here are some other stocks moving in today&#8217;s mid-day session.
<h3 class="wp-block-heading">Gainers</h3>
<ul>
<li>Soligenix, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SNGX#NASDAQ">SNGX</a>) shares jumped 195% to $5.90 after the company announced interim results for extended HyBryte treatment in early-stage CTCL patients.</li>
<li>uniQure N.V. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QURE#NASDAQ">QURE</a>) shares jumped 55.4% to $5.87 after the company announced updated interim data including up to 24 months of follow-up data from 29 treated patients enrolled in the ongoing U.S. and European Phase I/II clinical trials of AMT-130 for the treatment of Huntington&#8217;s disease.</li>
<li>Pineapple Energy Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PEGY#NASDAQ">PEGY</a>) gained 54.4% to $1.8550 after the company engaged Conduit Capital to provide structural internal support, staffing, and assistance with capital-raising activities.</li>
<li>Anew Medical, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WENA#NASDAQ">WENA</a>) rose 40% to $2.0350 after the company announced plans to accelerate its Klotho gene therapy program for neurodegenerative disorders.</li>
<li>Expensify, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EXFY#NASDAQ">EXFY</a>) rose 32% to $1.9150.</li>
<li>Longeveron Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LGVN#NASDAQ">LGVN</a>) rose 32% to $2.72. Longeveron said Neha Motwani, a senior healthcare investment banker, has been elected to the Longeveron Board of Directors.</li>
<li>Zapp Electric Vehicles Group Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZAPP#NASDAQ">ZAPP</a>) shares rose 31.5% to $12.16 after gaining 127% on Monday.</li>
<li>Silynxcom Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SYNX#NASDAQ">SYNX</a>) jumped 29.6% to $3.59 as the company received $500,000 in orders from the Israel Defense Forces.</li>
<li>Janover Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JNVR#NASDAQ">JNVR</a>) rose 25% to $0.9666 after the company announced that its AI loan advisor generated over 4,000 deals worth over $25 billion to date in 2024. Also, the company announced it facilitated nearly $10 million in funded loans this year.</li>
<li>Kymera Therapeutics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KYMR#NASDAQ">KYMR</a>) gained 21.7% to $38.91.</li>
<li>Jumia Technologies AG (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JMIA#NYSE">JMIA</a>) climbed 20.7% to $10.22 after Benchmark initiated coverage on the stock with a Buy rating and $14 price target.</li>
<li>Myomo, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MYO#NASDAQ">MYO</a>) gained 20% to $4.9233. Myomo recently issued preliminary second-quarter revenue guidance above estimates.</li>
<li>ReShape Lifesciences Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RSLS#NASDAQ">RSLS</a>) climbed 19.8% to $0.2450 after the company announced an all-stock merger with Vyome. Additionally, ReShape will sell its assets to an affiliate of Biorad Medisys for $5.16 million.</li>
<li>Arlo Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARLO#NYSE">ARLO</a>) shares rose 14.5% to $15.80 after the company's subscription service surpassed 4 million paid accounts.</li>
<li>Qilian International Holding Group Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QLI#NASDAQ">QLI</a>) gained 12.2% to $4.39.</li>
<li>Larimar Therapeutics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRMR#NASDAQ">LRMR</a>) rose 9.9% to $9.00.</li>
<li>Revolution Medicines, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RVMD#NASDAQ">RVMD</a>) climbed 9.7% to $43.37.</li>
<li>Beam Global (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BEEM#NASDAQ">BEEM</a>) shares gained 9.5% to $7.10 after jumping around 18% on Monday. Beam Global recently announced a year-over-year increase in second-quarter new orders.</li>
<li>Cirrus Logic, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRUS#NASDAQ">CRUS</a>) gained 4.4% to $136.15. Keybanc analyst John Vinh maintained Cirrus Logic with an Overweight and raised the price target from $120 to $155.</li>
</ul>
<h3 class="wp-block-heading">Losers</h3>
<ul>
<li>China Liberal Education Holdings Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CLEU#NASDAQ">CLEU</a>) shares declined 41% to $0.3350.</li>
<li>Indivior PLC (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INDV#NASDAQ">INDV</a>) shares dipped 35.3% to $9.93 after the company lowered its FY24 guidance.</li>
<li>Globavend Holdings Limited (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GVH#NASDAQ">GVH</a>) fell 32.5% to $0.5555.</li>
<li>Shapeways Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SHPW#NASDAQ">SHPW</a>) fell 30.8% to $0.3376 after jumping 132% on Monday.</li>
<li>Qualigen Therapeutics, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QLGN#NASDAQ">QLGN</a>) fell 21.5% to $0.2201.</li>
<li>Clene Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CLNN#NASDAQ">CLNN</a>) fell 17.8% to $0.2852. Clene announced a 1-for-20 reverse stock split effective July 11, 2024.</li>
<li>Novo Integrated Sciences, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVOS#NASDAQ">NVOS</a>) shares fell 16.4% to $0.6315.</li>
<li>Greenlane Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GNLN#NASDAQ">GNLN</a>) shares fell 15.8% to $0.2436 after gaining 5% on Monday.</li>
<li>Novo Integrated Sciences, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVOS#NASDAQ">NVOS</a>) declined 15.7% to $0.6359.</li>
<li>Tonix Pharmaceuticals Holding Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TNXP#NASDAQ">TNXP</a>) fell 15.6% to $0.6010 after the company announced pricing of approximately $4.0 million public offering.</li>
<li>Assure Holdings Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IONM#NASDAQ">IONM</a>) fell 15.4% to $4.83.</li>
<li>Applied Digital Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APLD#NASDAQ">APLD</a>) declined 14.5% to $6.11. Applied Digital said it sees fourth-quarter revenue of $41.7 million to $43.7 million versus estimates of $52.36 million.</li>
<li>Helios Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HLIO#NYSE">HLIO</a>) shares declined 13.4% to $40.10 after the company announced leadership team update. The company named Sean Bagan as Interim President and CEO.</li>
<li>Hywin Holdings Ltd &#8211; ADR (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HYW#NASDAQ">HYW</a>) shares fell 10.2% to $0.35 after jumping over 25% on Monday.</li>
<li>Cryoport, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CYRX#NASDAQ">CYRX</a>) shares declined 8.9% to $5.78.</li>
<li>Logistic Properties of the Americas (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LPA#NYSE">LPA</a>) dipped 8.6% to $9.01.</li>
<li>NWTN Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NWTN#NASDAQ">NWTN</a>) fell 7.5% to $1.22.</li>
<li>Albemarle Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALB#NYSE">ALB</a>) fell 7.1% to $92.10. Baird analyst Ben Kallo maintained Albemarle with an Outperform and lowered the price target from $170 to $127.</li>
<li>ChargePoint Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHPT#NYSE">CHPT</a>) declined 7% to $1.7285.</li>
<li>Heartland Express, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/HTLD#NASDAQ">HTLD</a>) fell 6.3% to $11.43. JP Morgan analyst Brian Ossenbeck downgraded Heartland Express from Neutral to Underweight and lowered the price target from $12 to $10.</li>
<li>UiPath Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PATH#NYSE">PATH</a>) fell 6% to $12.05 after the company announced it plans restructuring actions to manage its operating expenses that includes a 10% workforce reduction.</li>
<li>BP p.l.c. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BP#NYSE">BP</a>) shares fell 4.3% to $34.99 after the company disclosed the trading update for the second quarter of FY24, with oil trading results expected to be weak after a strong first quarter.</li>
</ul>
Now Read This: 
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<li><a href="https://www.benzinga.com/news/24/07/39688031/this-bank-of-america-analyst-is-no-longer-bearish-here-are-top-5-upgrades-for-tuesday">This Bank of America Analyst Is No Longer Bearish; Here Are Top 5 Upgrades For Tuesday</a></li>
</ul>

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Why Helen of Troy Shares Are Trading Lower By Around 30%? Here Are Other Stocks Moving In Tuesday's Mid-Day Session

Cirrus Logic shares are trading higher after KeyBanc maintained an Overweight rating and raised its price target from $120 to $155.

Companies in the Technology sector have received a lot of coverage today as analysts weigh in on Clarivate (CLVT – Research Report), Cirrus Logic (...

Analysts Have Conflicting Sentiments on These Technology Companies: Clarivate (CLVT), Cirrus Logic (CRUS) and VTEX (VTEX)

The semiconductor industry is on the rise owing to the increasing demand, technological progress, and government investments. Thus, investing in fundamentally sound semiconductor stocks Qorvo (QRVO), Silicon Motion (SIMO), and Cirrus Logic (CRUS) could offer promising growth opportunities. Read more to find out… The global semiconductor industry is growing with rising electronics use and integration across applications such as networking communication devices, data processing, industrial automation, consumer electronics, automotive, and government projects. Increasing global consumer electronics consumption is further supporting the growth.
Amid this backdrop, it could be wise to invest in fundamentally robust semiconductor stocks Qorvo, Inc. (<a href="https://stocknews.com/stock/QRVO/">QRVO</a>), Silicon Motion Technology Corporation (<a href="https://stocknews.com/stock/SIMO/">SIMO</a>), and Cirrus Logic, Inc. (<a href="https://stocknews.com/stock/CRUS/">CRUS</a>) to thrive in the expanding semiconductor landscape.
The semiconductor industry is experiencing rapid expansion owing to technological transformations across sectors. Key technologies such as Artificial intelligence (AI), machine learning, cloud computing, 5G networks, autonomous vehicles, and big data analytics that rely heavily on semiconductor components are driving the industry growth.
Government initiatives are further boosting the sector's growth prospects. One such move includes <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/09/fact-sheet-chips-and-science-act-will-lower-costs-create-jobs-strengthen-supply-chains-and-counter-china/">the CHIPS and Science Act</a>, which aims to strengthen U.S. semiconductor manufacturing, boost domestic production, and reduce supply chain vulnerabilities by investing in American chip-making capabilities.
That being said, the Semiconductor Industry Association (SIA) reported that global semiconductor industry sales totaled <a href="https://www.semiconductors.org/global-semiconductor-sales-increase-18-3-in-q2-2024-compared-to-q2-2023-quarter-to-quarter-sales-up-6-5/">$149.9 billion</a> during the second quarter of 2024, an 18.3% increase compared to the second quarter of 2023. Sales in June 2024 were $50.0 billion, a 1.7% increase compared to May 2024.
Looking ahead to 2025, the World Semiconductor Trade Statistics (WSTS) forecasts <a href="https://www.wsts.org/esraCMS/extension/media/f/WST/6558/WSTS_FC-Release-2024_05.pdf">a 12.5% growth</a> in the global semiconductor market, reaching an estimated valuation of $687 billion. This growth is expected primarily by the Memory and Logic sectors, with significant increases projected.
The Memory sector is forecasted to exceed $200 billion, representing an upward trend of over 25%, while the Logic sector is expected to surpass $200 billion, marking a growth of over 10%.
Considering these positive trends, let's analyze the fundamentals of three solid <a href="https://stocknews.com/category/semiconductor-wireless-chip/">Semiconductor &amp; Wireless Chip</a> stocks, beginning with #3.
Stock #3: Qorvo, Inc. (<a href="https://stocknews.com/stock/QRVO/">QRVO</a>)
QRVO develops and markets technologies and products for global wireless, wired, and power markets. Its segments include High Performance Analog; Connectivity and Sensors Group; and Advanced Cellular Group. The company serves numerous sectors, such as consumer electronics, smart home/IoT, automotive, EVs, and more.
On January 31, QRVO <a href="https://ir.qorvo.com/news-releases/news-release-details/qorvor-acquire-anokiwave">announced an agreement</a> to acquire Anokiwave, a leading supplier of high-performance silicon integrated circuits (ICs) for intelligent, active array antennas in defense and aerospace (D&amp;A), SATCOM, and 5G applications.
Anokiwave's high-frequency beamforming and intermediate frequency (IF) to RF conversion ICs could strongly complement QRVO's RF front-end portfolio.
Over the past five years, QRVO's revenue increased at a CAGR of 4.8%. Its EBIT and total assets rose at a CAGR of 2% and 1.7%, respectively. Moreover, the company's normalized net income rose at a 2.8% CAGR over the same time frame.
For the fiscal 2025 first quarter that ended June 29, 2024, QRVO's revenue rose 36.2% year-over-year to $886.67 million. Its non-GAAP <a href="https://www.investopedia.com/terms/o/operatingincome.asp">operating income</a> increased 110.1% from the prior-year quarter to $98.13 million.
Likewise, the company's non-GAAP net income amounted to $83.52 million and $0.87 per share, up 148.7% and 155.9% year-over-year, respectively.
For the fiscal year ending March 2025, Street expects QRVO's revenue to increase 4.5% year-over-year to $3.94 billion. Plus, the company has topped the consensus revenue and EPS estimates in each of the trailing four quarters, which is impressive.
Shares of QRVO have gained 7.1% over the past three months and 16.9% over the past nine months to close the last trading session at $103.02.
QRVO's bright prospects are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated considering 118 different factors, each weighted optimally.
QRVO has a B grade in Growth, Sentiment, and Quality. Within the <a href="https://stocknews.com/category/semiconductor-wireless-chip/">Semiconductor &amp; Wireless Chip</a> industry, QRVO is ranked #15 out of 90 stocks.
<a href="https://stocknews.com/stock/QRVO/">Click here</a> to see QRVO's rating for Value, Momentum, and Stability.
Stock #2: Silicon Motion Technology Corporation (<a href="https://stocknews.com/stock/SIMO/">SIMO</a>)
Headquartered in Hong Kong, SIMO provides negative-AND flash controllers for solid-state drives and other storage devices. It specializes in designing low-power semiconductor solutions for OEMs and mobile storage customers. The company's products are utilized in smartphones, tablets, and other electronic devices.
On August 5, SIMO announced the release of the world's first <a href="https://siliconmotiontechnologycorporation.gcs-web.com/news-releases/news-release-details/silicon-motion-launches-best-performancewatt-pcie-gen5-ssd">PCIe Gen5 client SSD controller</a> using Taiwan Semiconductor Manufacturing Company Limited's (<a href="https://stocknews.com/stock/TSM/">TSM</a>) 6nm EUV process, SM2508, the best power efficiency PCIe Gen5 NVMe 2.0 client SSD controller for AI PCs and gaming consoles that offer a 50% reduction in power consumption compared to competitive offerings in the 12nm process.
The new PCIe Gen5 SSD controller will meet the unique demands of AI-capable PCs, delivering exceptional performance and power efficiency. This advancement ensures that SIMO stays ahead of evolving AI PC standards, positioning the company as a leader in high-performance and energy-efficient technology solutions for the future.
On June 3, SIMO launched the <a href="https://siliconmotiontechnologycorporation.gcs-web.com/news-releases/news-release-details/silicon-motion-unveils-new-usb-display-interface-soc-enabling">SM770 USB display</a> interface SoC for USB docking stations to simplify connectivity for multiple 4K Ultra-High-Definition Displays with low latency and low power consumption.
The advancement would enable the creation of high-value USB display docking stations and adapters, addressing the demanding needs of today's professional environments and solidifying SIMO's market position.
Over the past five years, SIMO's revenue increased at a CAGR of 11.2%. Its EBITDA and total assets rose at a CAGR of 3.6% and 8.2%, respectively. Moreover, the company's normalized net income and EPS grew at a CAGR of 4% and 1.2%, respectively, over the same period.
During the fiscal 2024 second quarter that ended June 30, 2024, SIMO's net sales increased 50.1% year-over-year to $210.67 million. Its non-GAAP gross profit grew 62.2% from the year-ago value to $96.84 million. Additionally, the company's non-GAAP operating profit of $34.71 million indicates growth of 197.1% year-over-year.
Furthermore, the company's non-GAAP net income and non-GAAP earnings per ADS were $32.46 million and $0.96, up 157.9% and 152.6% from the prior year's quarter, respectively.
Street expects SIMO's revenue and EPS for the third quarter (ending September 2024) to grow 21.7% and 35.6% year-over-year to $209.77 million and $0.85, respectively. Furthermore, the company has surpassed the consensus revenue and EPS estimates in all four trailing quarters, which is remarkable.
Shares of SIMO have gained 3.1% over the past nine months to close the last trading session at $57.51.
SIMO's robust fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, translating to a Buy in our proprietary rating system.
SIMO has a B grade for Growth and Value. It is ranked #8 among 90 stocks in the Semiconductor &amp; Wireless Chip industry.
To access SIMO's ratings for Quality, Stability, Sentiment, and Momentum, <a href="https://stocknews.com/stock/SIMO/">click here</a>.
Stock #1: Cirrus Logic, Inc. (<a href="https://stocknews.com/stock/CRUS/">CRUS</a>)
CRUS offers low-power, high-precision mixed-signal processing solutions for audio and high-performance mixed-signal applications. Its products include amplifiers, codecs, and digital signal processors. In addition, the company's SoundClear technology features tools, software, and algorithms that enhance user experience.
On June 25, CRUS announced the latest devices in its <a href="https://investor.cirrus.com/news-and-events/investor-news/news-details/2024/Cirrus-Logic-Unveils-Its-Latest-Additions-to-Its-Family-of-Professional-Audio-Converters/default.aspx">Pro Audio product family</a>: a series of digital-to-analog converters (DACs) and an ultra-high-performance audio CODEC. These solutions cater to recording artists, live performers, and audiophiles, providing transparent audio converters for seamless recording and playback.
With these flagship products, CRUS aims to set a gold standard in the audio electronics market. The advanced DACs and audio CODEC demonstrate the company's commitment to delivering superior audio quality, solidifying its reputation as a high-performance audio technology industry leader.
On February 5, CRUS <a href="https://investor.cirrus.com/news-and-events/investor-news/news-details/2024/Cirrus-Logic-Intel-and-Microsoft-Announce-Latest-Reference-Design-to-Enable-Cool-Quiet-and-High-Performance-PCs/default.aspx">entered a collaboration</a> with Intel Corporation (<a href="https://stocknews.com/stock/INTC/">INTC</a>) and Microsoft Corporation (<a href="https://stocknews.com/stock/MSFT/">MSFT</a>) on a new PC reference design to feature CRUS' high-performance audio and power technologies and INTC's forthcoming client processor, codenamed Lunar Lake.
The collaboration aims to reduce heating, extend battery life, and enable smaller, thinner PC designs. By integrating CRUS's advanced technologies with INTC's and MSFT's innovations, the partnership is set to revolutionize the PC industry, positioning CRUS at the forefront of cutting-edge PC design and performance.
CRUS' revenue has grown at a CAGR of 8.6% over the past five years. The company's net income and EPS improved at CAGRs of 25% and 27.4% over the same period. Further, the company's EBITDA grew at a CAGR of 17.5% over the same time frame.
For the fiscal 2025 first quarter, which ended on June 29, 2024, CRUS reported net sales of $374.03 million, increasing 18% year-over-year. Its income from operations grew 163% from the year-ago value to $46.79 million.
In addition, the company's non-GAAP net income and non-GAAP EPS were $62.37 million and $1.12, respectively, indicating growth of 64% and 67.2% from the prior year's quarter.
CRUS' shares have gained 47% over the past six months and 35.6% over the past year to close the last trading session at $115.31.
CRUS' sound fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to Buy in our proprietary rating system.
The stock has a B grade for Growth, Value, Quality, and Sentiment. CRUS is ranked #2 within the same industry among the 90 stocks.
In addition to the POWR Ratings we've stated above, we also have CRUS ratings for Stability and Momentum. Get all CRUS ratings <a href="https://stocknews.com/stock/CRUS/">here</a>.
What To Do Next?
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<hr />
QRVO shares rose $3.08 (+2.99%) in premarket trading Wednesday. Year-to-date, QRVO has declined -8.52%, versus a 10.55% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Aanchal Sugandh</h2> <img src='https:/wp-content/uploads/2022/12/Aanchal-Sugandh_Headshot.jpg' style="float:left; padding:5px;width:125px;">Aanchal's passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor's degree in finance and is pursuing the CFA program.

She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.<a href="https://stocknews.com/authors/?author=aanchal-sugandh">More...</a>The post <a href=https://stocknews.com/news/qrvo-crus-simo-msft-tsm-intc-3-high-growth-semiconductor-stocks-to-buy-in-august/>3 High-Growth Semiconductor Stocks to Buy in August</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

3 High-Growth Semiconductor Stocks to Buy in August

Cirrus Logic gains as KeyBanc ups price target after 'strong' Q1 results, guidance

After a solid second-quarter performance, Silicon Motion Technology (SIMO) is poised for continued growth and profitability, driven by the ongoing strength of its expanding NAND OEM business and strategic product innovations. Amid surging competition and economic uncertainty, let's find out if it's ideal to add SIMO to your watchlist for its recovery potential. Read more... Silicon Motion Technology Corporation (<a href="https://stocknews.com/stock/SIMO/">SIMO</a>) is a prominent global provider of semiconductor solutions. Based in Hong Kong, the company specializes in developing NAND flash controllers for solid-state storage devices. It also offers SSD controllers for servers, PCs, and other client devices and is the leading supplier of eMMC and UFS embedded storage controllers.
SIMO's business performed well in the second quarter of 2024, with revenue exceeding the high end of its guided range and gross margins at the high end of its expectations. The company reported <a href="https://siliconmotiontechnologycorporation.gcs-web.com/news-releases/news-release-details/silicon-motion-announces-results-period-ended-june-30-2024">second-quarter net sales of $210.67 million</a>, surpassing the analysts' estimate of $209 million.
The company's SSD controller sales for the second quarter grew 25% to 30% year-over-year. Moreover, its eMMC=UFS controller sales rose 190% to 195% year-over-year, and its SSD solutions sales increased 20% to 25% quarter-over-quarter. Silicon Motion's non-GAAP gross margin was $46%. It posted an EPS per ADS of $0.96, compared to the consensus estimate of $0.95.
Wallace Kou, President and CEO of Silicon Motion, said, "Our SSD controller revenue increased for the fifth consecutive quarter and strength from our eMMC and UFS business accelerated as smartphone OEMs build in anticipation for a seasonally stronger second half and modest handset industry growth this year.
"The first half of the year was a strong start to 2024, and we remain confident that our increasing share with flash makers and expanding product portfolio will continue to grow our business and profitability throughout this year," he added.
For the third quarter of 2024, the management expects revenue in the range of $205-$216 million, up 19% to 25% year-over-year. Silicon Motion is expected to report a non-GAAP gross margin for the quarter of 46% to 47% and a non-GAAP operating margin of 14.3% to 15.3%.
Shares of SIMO have gained 3.1% over the past five days to close the last trading session at $60.61.
Let's look at factors that could influence SIMO's performance in the upcoming months.
Recent Strategic Developments
On August 7, SIMO launched the SM2508, the most power-efficient PCIe Gen5 NVMe 2.0 client SSD controller designed for AI PCs and gaming consoles. As the world's first PCIe Gen5 client SSD controller built using TSMC's 6nm EUV process, it delivers a 50% reduction in power consumption compared to competitors using the 12nm process.
Several leading SSD manufacturers, including major NAND suppliers are designing the SM2508. Production of the SM2508 is slated to ramp up in the fourth quarter of this year.
In May, Silicon Motion introduced the SM2322, the industry's fastest single-chip solution for high-performance, low-power, and cost-effective solution for external portable SSDs. It supports up to 8TB of storage and delivers exceptional data transfer rates of 20Gbps for managing large volumes of content from AI smartphones, multimedia devices, and game consoles.
"The new SM2322 now sets the bar even higher, introducing enhancements to support the higher speed USB3.2 specifications and providing greater capacity, catering to the needs of the AI era for large-scale digital media content storage and access," said Nelson Duann, Senior VP of Client &amp; Automotive Storage Business at Silicon Motion
Robust Financials
For the second quarter that ended June 30, 2024, SIMO's net sales increased 50.1% year-over-year to $210.67 million. Its non-GAAP <a href="https://www.investopedia.com/terms/g/grossprofit.asp#:~:text=Gross%20profit%2C%20or%20gross%20income,fluctuate%20compared%20to%20production%20output.">gross profit</a> grew 62.2% from the year-ago value to $96.84 million. Its non-GAAP operating profit was $34.71 million, an increase of 197.1% year-over-year.
Furthermore, the company reported second-quarter non-GAAP net income and non-GAP earnings per ADS of $32.46 million, or $0.96 per share, up 157.9% and 152.6% from the prior year's period, respectively. Silicon Motion's cash and cash equivalents were $289.18 million as of June 30, 2024, compared to $249.83 million as of June 30, 2023.
Favorable Analyst Estimates
Analysts expect SIMO's revenue for the third quarter (ending September 2024) to grow 21.7% year-over-year to $209.77 million. The consensus EPS estimate of $0.85 for the ongoing quarter indicates an improvement of 35.6% year-over-year. Moreover, the company has topped consensus revenue and EPS estimates in each of the trailing four quarters, which is impressive.
For the fiscal year ending December 2024, Street expects SIMO's revenue and EPS to increase 28.2% and 53.2% from the previous year to $819.38 million and $3.48, respectively. The company's revenue and EPS for the fiscal year 2025 are expected to grow 9.8% and 36.3% year-over-year to $899.49 million and $4.74, respectively.
Low Valuation
In terms of forward non-GAAP P/E, SIMO is trading at 17.43x, 23.8% lower than the industry average of 22.87x. Similarly, the stock's forward EV/Sales of 2.14x is 21% lower than the industry average of 2.71x. Also, its forward EV/EBITDA of 11.80x is 13.1% lower than the industry average of 13.58x.
Moreover, the stock's forward Price/Sales and Price/Book multiples of 2.49 and 2.53 are favorably compared to the industry averages of 2.78 and 3.92, respectively. Its trailing-12-month Price/Cash Flow of 15.08x, 17.6% lower than the industry average of 18.29x.
POWR Ratings Reflect Promise
SIMO's robust fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by taking into account 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. SIMO has a B grade for Growth, consistent with its robust financial performance in the last reported quarter. Further, the stock has a B grade for Value, in sync with its lower-than-industry valuation.
Within the <a href="https://stocknews.com/category/semiconductor-wireless-chip/">Semiconductor &amp; Wireless Chip</a> industry, SIMO is ranked #8 out of 90 stocks.
Beyond what I have stated above, we have also given SIMO grades for Quality, Momentum, Sentiment, and Stability. Get all SIMO ratings <a href="https://stocknews.com/stock/SIMO/">here</a>.
Bottom Line
SIMO's second-quarter results demonstrated significant business growth, with revenues and EPS surpassing analysts' estimates. Silicon Motion's SSD controller revenue surged for the first consecutive quarter, with significant strength from its eMMC and UFS business.
After a solid first half of 2024, the company seems positioned to grow its business and profitability throughout the remaining year by increasing its share with flash makers and expanding its product portfolio. Given its robust financials, optimistic analyst estimates, and low valuation, SIMO could be an ideal buy for substantial gains.
How Does Silicon Motion Technology Corporation (SIMO) Stack Up Against Its Peers?
While SIMO has an overall POWR Rating of B, investors could also check out these other stocks within the <a href="https://stocknews.com/category/semiconductor-wireless-chip/">Semiconductor &amp; Wireless Chip</a> industry with B (Buy) or B (Buy) ratings: Qualcomm Inc. (<a href="https://stocknews.com/stock/QCOM/">QCOM</a>), United Microelectronics Corp. (<a href="https://stocknews.com/stock/UMC/">UMC</a>), and Cirrus Logic, Inc. (<a href="https://stocknews.com/stock/CRUS/">CRUS</a>).
To explore more A or B-rated chip stocks, <a href="https://stocknews.com/category/semiconductor-wireless-chip/">click here</a>.
What To Do Next?
Discover 10 widely held stocks that our proprietary model shows have tremendous downside potential. Please make sure none of these "death trap" stocks are lurking in your portfolio:
<a href="https://report.stocknews.com/free-report/10-stocks-to-sell/?formplacement=artbotad_10sell">10 Stocks to SELL NOW! &gt;</a> 

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SIMO shares were trading at $59.68 per share on Friday morning, down $0.93 (-1.53%). Year-to-date, SIMO has declined -0.42%, versus a 12.39% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Mangeet Kaur Bouns</h2> <img src='https:/wp-content/uploads/2022/01/Mangeet-Kaur-Bouns_Image-4.jpg' style="float:left; padding:5px;width:125px;">Mangeet's keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet's looks to help retail investors understand the underlying factors before making investment decisions.<a href="https://stocknews.com/authors/?author=mangeet-kaurbouns">More...</a>The post <a href=https://stocknews.com/news/simo-qcom-umc-crus-should-you-watch-silicon-motion-technology-simo-for-its-recovery/>Should You Watch Silicon Motion Technology (SIMO) for Its Recovery Potential?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Should You Watch Silicon Motion Technology (SIMO) for Its Recovery Potential?

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Cirrus Logic (CRUS) Forecast

Cirrus Logic (NASDAQ:CRUS) Stock, Quote.Headers.trade-ideas