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Nvidia Stock Slips. Chipmakers Trade Mixed After Broadcom’s Strong Earnings.

Dmitry Kalinovsky/Dreamstime

Semiconductor stocks traded mixed Friday after  Broadcom
 posted better-than-expected fiscal fourth-quarter earnings and its first-quarter revenue guidance topped estimates. 

Nvidia (ticker: NVDA) fell 1.7% to $299.84, Lam Research (LRCX) was up 0.2%, Qualcomm (QCOM) was 0.5% higher and Micron (MU) fell 0.1%. Applied Materials (AMAT) dipped 0.6%. Chip stocks declined Thursday along with the broader tech sector. The tech-heavy Nasdaq fell 1.7% on Thursday but was rising 0.2% on Friday.

Broadcom (AVGO) was rising 7.4% Friday to $626.84 after the semiconductor company said it expects first-quarter revenue of $7.6 billion, up 14%, and ahead Wall Street expectations of $7.3 billion. The stock set an all-time high during the session of $644.75.

The company also raised its quarterly dividend to $4.10 a share from $3.60, and announced a new $10 billion stock repurchase program.

Analysts at KeyBanc maintained their Overweight rating on Broadcom shares but raised their price target to $710 from $575. KeyBanc said Broadcom’s fourth-quarter results “reflect a strong recovery in enterprise demand,” while “hypercloud and service providers demand remains robust.”

Broadcom reported fourth-quarter revenue from its semiconductor business of $5.6 billion, up 17% from a year earlier, while software revenue gained 8% to $1.8 billion.

As for Nvidia, momentum in the stock has slowed since the beginning of December after the Federal Trade Commission sued to block the company’s proposed $40 billion acquisition of chip designer Arm.

The stock has fallen 2.3% over the past five days. Nvidia has risen nearly 130% in 2021.

Write to Joe Woelfel at [email protected]

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