Micron’s better-than-expected earnings impacted Intel
Intel’s (INTC) stock rose by ~9% over the last week. So, are investors expecting strong earnings for Intel? The company will announce its earnings on October 13. This could very well be the reason for Intel’s stock rallying. Intel’s peer in the semiconductor space, Micron (MU), announced better-than-expected earnings on October 1. Since the day Micron announced its earnings, its stock rose by a strong 25%. Investors now believe that the PC stocks have bottomed out.
Microsoft and EMC’s stock rose for a different reason
Other major tech stocks like Microsoft (MSFT) and EMC (EMC) have also performed better than the broader market. One of the obvious reasons for Microsoft’s stock performing better than the broader index is investors’ belief in the bottoming of PC stocks. However, another factor that helped Microsoft’s stock was the company’s announcement that it will release its first laptop, the Surface Book. Earlier this week, Microsoft also announced the launch of Windows smartphones for high-end business customers. These smartphones are the Lumia 950 and Lumia 950 XL.
EMC was also in the news for a different reason. According to a report from the Wall Street Journal, citing people familiar with the matter, Dell is in advanced talks to buy EMC. The above chart shows the movement of these stocks in the last week. These stocks have comfortably beaten the S&P 500 Index (SPY). SPY had a modest rise of 4.3% over the past week. Could the tech stock rally fizzle out when these companies start announcing their earnings? To understand why this could happen read our next part of the series.