2 Chip Stocks Hit by the Huawei News

The U.S. is reportedly considering keeping its Huawei ban

Managing Editor
Aug 9, 2019 at 10:15 AM
facebook X logo linkedin

The semiconductor sector is under pressure this morning, after a Bloomberg report indicated the U.S. was considering maintaining its ban on China's Huawei. This comes in response to China's move to stop buying American crops. Two chip stocks that are particularly impacted by this news are Micron Technology, Inc. (NASDAQ:MU) and Skyworks Solutions Inc (NASDAQ:SWKS).

At last check, Micron stock was down 1.8% to trade at $41.86, headed for its second straight weekly loss. After toppling the $48 level in late July, the shares have pulled back, although support has emerged at their 40-day moving average. Year-to-date, MU is still up 30%.

Micron stock has certainly been an attractive target for premium buyers during the past year, in the sense that it's made bigger moves than what the options market was pricing in. This is according to the security's elevated Schaeffer's Volatility Scorecard (SVS) reading of 90, out of a possible 100.

Looking at Skyworks, the stock is down 2.8% to trade at $78.05, on track to snap a three-day winning streak. The shares gapped lower on Aug. 1, in the wake of a subpar quarterly report, with the company citing the Huawei overhang as a catalyst. SWKS has since consolidated in the $76-$80 neighborhood, which coincides with its pre-bull gap levels from February and its 120-day moving average.

Citigroup has come forward today with a price-target cut to $85 from $90. This is indicative of the overall analyst sentiment surrounding Skyworks, with 13 out of 20 in coverage rating it a "hold" or "sell," and the average 12-month price target perched at $86.39.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI