Chip stocks surge across the board on acquisition reports, activist stakes, and analyst commentary
Chip stocks are powering higher in early trading.
Most stocks in the industry jumped along with Intel — though not as much — on the heels of a report that the struggling US chipmaker might be acquired.
Qorvo is the top performer after The Wall Street Journal reported that Starboard Value has taken an activist position in the firm.
Bank of America analysts also reiterated their bullish view on the industry, writing that it’s still early in what is a “generational capex cycle” linked to data-center development as hyperscalers keep hyperscaling.
“We highlight GOOGL/MSFT/META/AMZN all pointed to increased calendar year 2025 spending in their recent third-quarter earnings, with the last three suggesting meaningful year-over-year increases driven by genAI workloads,” they wrote.
While their top picks in the space are Nvidia and Broadcom, the bank also boosted its price target on Marvell Technology by $10 to $150.
Semis continue to ping-pong, with the VanEck Semiconductor ETF oscillating from the bottom, to the top, then back to the bottom of its three-month range in the first three trading weeks of the year before this latest renewed press higher. Of its 25 members, 21 are up at least 1% as of 10:42 a.m. ET.