September looms as a risk month for stocks, Yardeni says
On Monday, Cantor Fitzgerald reaffirmed a positive outlook on several semiconductor stocks, emphasizing the sector’s performance and highlighting potential catalysts. The firm’s report, released over the weekend, noted that the Semiconductor Index (SOX) fared better than the broader market last week, with a modest 1% decline compared to the S&P 500’s 2.5% drop. The top-performing companies included Intel Corp (NASDAQ:INTC), Credo Technology Group Holding Ltd (NASDAQ:CRDO), Advantest Corp (OTC:ATEYY), Western Digital Corp (NASDAQ:WDC), and Micron Technology, Inc. (NASDAQ:MU).
The analysis pointed out the underperformers in the sector, such as Teradyne, Inc. (NASDAQ:TER), Microchip Technology Inc . (NASDAQ:MCHP), Cirrus Logic, Inc. (NASDAQ:CRUS), Ichor Holdings, Ltd. (NASDAQ:ICHR), and Analog Devices , Inc. (NASDAQ:ADI). Despite these variances, Cantor Fitzgerald’s top picks remain unchanged, favoring NVIDIA Corporation (NASDAQ:NVDA), Broadcom Inc (NASDAQ:AVGO), Marvell Technology, Inc. (NASDAQ:MRVL), Micron Technology, MU, ASML Holding (AS:ASML) NV (NASDAQ:ASML), and Western Digital, WDC. For investors seeking deeper insights, InvestingPro offers comprehensive analysis and valuation metrics for over 1,400 US stocks, including detailed Pro Research Reports for each of these semiconductor companies.
The firm’s selection is based on several factors, including sustained AI spending and product cycles for NVIDIA, the custom silicon ramp and networking for both Broadcom and Marvell, HBM-related upside for Micron, the de-risked outlook for ASML toward 2025, and Western Digital’s significant discount to its peers.
Looking ahead, the report identifies potential catalysts that could impact the sector. NVIDIA is set to host its annual GTC AI conference next week, which is expected to be a significant event for the industry. Additionally, Micron is scheduled to report its earnings on Thursday, which will provide further insight into the semiconductor sector’s performance. These events could potentially influence stock movements and investor sentiment in the near term.
In other recent news, Credo Technology Group Holding Ltd. reported impressive financial results for the third quarter of fiscal year 2025, surpassing market expectations. The company posted earnings per share of $0.25, exceeding the forecast of $0.18, and achieved revenue of $135 million, outperforming the anticipated $120.29 million. Credo’s revenue increased by 154% year-over-year, reflecting strong demand for its high-speed connectivity solutions. Stifel analysts maintained a Buy rating on Credo, setting a price target of $85, and highlighted the company’s ability to manage high-volume orders and maintain a robust supply chain. The analysts noted that Credo’s largest customer had a significant need for volume delivery, contributing to the company’s revenue growth. Additionally, Credo raised its revenue outlook for the April quarter, projecting a midpoint of $160 million, which represents an 18.5% sequential growth. The company’s Advanced Electronic Components program was identified as a key driver of this upward revision. Stifel anticipates that Credo is on track to achieve more than 50% year-over-year revenue growth in fiscal year 2026.
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