Following a brief pullback, the semiconductor sector staged a robust rebound on Wednesday. The iShares Semiconductor ETF advanced more than 2% during the session, recouping some of the previous day's losses.
Individual stocks broadly moved higher, with several prominent names posting significant gains.
Marvell Technology led the sector's advance, climbing over 5% to approach the $176 level. The stock closed at $176.27 on Tuesday, having risen 4.34% that day. Evercore ISI's latest report raised its price target for Marvell from $133 to $155, maintaining an "Outperform" rating and highlighting the company's increasingly important role within NVIDIA's AI ecosystem.
Intel gained 4.9% in premarket trading, extending its 2.43% gain from the previous session. Benchmark analysts raised their price target to $140, while Citigroup also increased its target to $130, suggesting the market is underestimating Intel's earnings potential. Intel reported first-quarter earnings per share of $0.29, significantly surpassing market expectations of $0.01.
Micron Technology and Qualcomm both rose more than 3%. Micron closed at $698.74 on Tuesday, up 2.52%. Citigroup substantially increased its price target for Micron from $425 to $840, and Mizuho Securities also raised its target from $740 to $800, anticipating strong NAND and DRAM pricing to persist through 2027.
The rebound logic points to a technical recovery following the recent pullback. The semiconductor sector had declined for several consecutive sessions due to rising U.S. Treasury yields and profit-taking pressure. As yields retreated in early Wednesday trading, signs of capital flowing back into the sector became evident. The market widely views the sector's recovery as reflecting a restoration of investor confidence in the prospects for AI computing demand, particularly ahead of NVIDIA's upcoming earnings report.
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