WDC and NVIDIA gain over 6.0% today
So which stocks have driven prices higher? Micron Tech (MU) is up 6.8%, followed by NVIDIA (NVDA) at 6.7% and Western Digital (WDC) at 6.6%. Broadcom (AVGO), Advanced Micro Devices (AMD), and Xilinx (XLNX) are up 6.0%, 5.9%, and 5.8%, respectively, as well. It seems like an expected Fed rate cut has driven the broader markets higher with semiconductor stocks leading this gain in the tech space.
Stocks impacted due to the macroeconomic environment
The semiconductor stocks have been negatively impacted since the start of May this year after a stellar run in the first four months of 2019. The escalation of the trade war between China and the United States have weighed on semiconductor stocks, as several of them have significant exposure to China.
The recent ban on Huawei has also driven stocks lower. In fact, Huawei is a major Broadcom partner, which resulted in the latter reducing its sales forecast by almost $2 billion this fiscal year. Several US chipmakers are also lobbying to ease the Huawei ban. Though trade war concerns remain, some stocks like NVIDIA might be undervalued due to their recent steep decline.