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3 Semiconductor Stocks to Watch as Bond Yields Surge

The 10-year Treasury yield hit five-month highs earlier

Digital Content Manager
Oct 23, 2024 at 2:56 PM
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The 10-year Treasury yield's climb to five-month highs is weighing on chip stocks today. Below, let's dig into how Advanced Micro Devices, Inc. (NASDAQ:AMD)Arm Holdings PLC - ADR (NASDAQ:ARM), and Qualcomm Inc (NASDAQ:QCOM) are reacting to the prospect of higher borrowing costs.

AMD was last seen down 2.3% to trade at $150.60, on track for its third loss in the last four sessions. The equity has been trending lower since a rally from earlier this month fell short of the $170 level, and is well off its March 8, record high of $227.30. In the last 12 months, shares are still up 48.4%.

ARM is down 7.7% at $140.82 at last glance, following reports that it canceled a design license that enabled Qualcomm to make chips using the company's intellectual property. The 40-day moving average is containing losses, which could be the stock's single-day percentage drop since August. The equity sports a healthy 87.8% year-to-date lead, though.

QCOM is 4.8% lower to trade at $164.92 at last glance, also suffering from the design license's reported cancellation. Shares have made several failed attempts to conquer the $180 level since early August. Despite shedding 9.1% in the last three months, QCOM still carries a 13.8% gain for 2024.

 

AI has exploded ever since ChatGPT set the world on fire near the end of 2022.

Numerous companies with connections to artificial intelligence have seen their stocks soar.

That includes Nvidia, the poster boy of AI.

Its stock has skyrocketed 716% since ChatGPT’s debut. But here’s the thing …

While everyone’s still counting their money from this first AI boom … Nvidia and countless others have moved on to the next stage.

That includes Big Tech, which is currently making a series of peculiar investments in a few strange companies. This has nothing to do with tech. At least on the surface …

Yet, these strange investments could be the early ripples of a massive wave …Without them, ChatGPT could stop operating … Amazon, Google, Microsoft and more could see profits drop drastically.

In fact, Elon Musk says these investments are critical when it comes to solving the number one problem facing AI.

Now, Silicon Valley legend Michael Robinson has identified two companies that could play a significant role in the solution.

Their stocks just may be the key to AI 2.0.

Find out more about these two companies today.
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