Stock rally in the semiconductor sector intensifies, promising an exhilarating evening ahead
Tech earnings season is in full swing, and it's nothing short of a rollercoaster ride for investors.
STMicroelectronics, a major player in the semiconductor game, has sent shockwaves through the industry with a staggering eight percent surge in European trading thanks to a $1.25 billion profit and an optimistic revenue outlook for 2023. But it's not just STM who's enjoying the ride; competitors like Infineon and Applied Materials have also seen their shares climb by three and four percent, respectively.
A Blockbuster Fourth Quarter for STM
Let's take a closer look at STMicroelectronics' performance in the fourth quarter of 2022. They reported a profit of $1.25 billion, with earnings per share jumping from $0.82 to $1.32 - not too shabby compared to analysts' expectations of an average of $1.13 per share.
The Future Looks Bright
STMicroelectronics CEO, Jean-Marc Chery, paints an exciting picture for the future. He predicts revenue of between $16.8 and $17.8 billion in 2023, representing a potential growth of up to over ten percent. This outlook is way beyond the expectations of experts surveyed by Bloomberg, who could barely dream of a marginal increase after the significant revenue growth in the previous year.
Intriguingly, Intel, another semiconductor giant, is set to reveal its earnings report after the close of the U.S. markets today. Wall Street analysts are banking on an average earnings per share of $0.20 on revenue of $14.49 billion for the last quarter.
Meanwhile, German chipmaker Infineon will share its quarterly results on Thursday.
The BÖRSE Online Chip Power Index: A Thrilling Ride
All the mentioned companies are components of the BÖRSE Online Chip Power Index, a thrilling ride for investors that consists of 15 values. The index has gained nearly 15 percent since the beginning of the year. With the index certificate WKN DA0ABM, investors can jump on this ride and participate almost 1:1 in the index's development. The high demand for chips in the area of e-mobility is likely to keep the ride exciting in the long term.
However, it's important to note that the price of the financial instruments is derived from an index as the underlying. The Boersenmedien AG has developed this index and holds the rights to it. They have also entered a cooperation agreement with the issuer of the displayed securities, Alphabeta Access Products Ltd., and Morgan Stanley & Co. International plc, granting the issuer a license to use the index in exchange for remuneration.
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With that, let's fasten our seatbelts and hold on tight, folks. The ride's just getting started!
- STMicroelectronics, driven by a significant profit of $1.25 billion and optimistic revenue forecasts for 2023, saw an impressive eight percent surge in European trading during tech earnings season.
- Chery, CEO of STMicroelectronics, has expressed a positive outlook for the future, predicting revenue growth of up to over ten percent in 2023, far exceeding analyst expectations.
- The BÖRSE Online Chip Power Index, featuring companies like STMicroelectronics, Infineon, and Applied Materials, has gained nearly 15 percent since the start of the year, reflecting the high demand for chips in the mobility sector, particularly technology.
