Semiconductor stocks exhibited mixed performance on Friday despite Micron’s announcement of increased capital spending for 2024, which was seen as a positive sign for the memory market. However, a Citigroup analyst noted that this boost in spending may not have the same effect on wafer fab equipment spending. Despite this, Micron shares rose nearly 4% on the news. Other semiconductor equipment stocks, such as Lam Research, KLA Corp., and Applied Materials, also saw fractional gains. Intel shares rose 0.8% after the company announced the start of high-volume production of extreme lithography at its Ireland plant. Dutch semiconductor equipment company ASML, which produces the EUV tools used by Intel, saw its shares gain 1.7%.
Meanwhile, investment firm Bank of America initiated coverage on integrated circuit companies Allegro MicroSystems and Lattice Semiconductor with neutral ratings, resulting in mixed performances for their stocks. AI-related semiconductor stocks like Nvidia, AMD, and Qualcomm were modestly higher following Apple CEO Tim Cook’s statement about the company’s increased investment in the artificial intelligence space and plans to hire additional workers in the U.K. On the other hand, stocks such as Broadcom, Texas Instruments, Analog Devices, and ON Semiconductor saw fractional losses amid a generally positive market following a milder inflation reading in August.
Overall, while Micron’s increased capital spending is seen as a positive indicator for the memory market, there are concerns that it may not have the same impact on wafer fab equipment spending. Nonetheless, the news had a positive effect on Micron shares and semiconductor stocks in general, with some seeing gains and others experiencing losses. The announcement by Intel regarding the start of high-volume production of extreme lithography also contributed to its share price increase. Furthermore, Bank of America’s neutral ratings on Allegro MicroSystems and Lattice Semiconductor led to mixed performances for these stocks. Finally, AI-related semiconductor stocks saw modest gains, supported by indications of increased investment from Apple in the artificial intelligence space.