Chip stocks rose in early trading, following the broader market. Western Digital rose 10%; Intel rose 4%; Super Micro Computer, AMD, TSMC, Qualcomm, Micron, and Arm rose 3%; Nvidia rose 2%.
Western Digital topped Wall Street estimates for quarterly profit on demand for its data-storage products from cloud service providers.
Intel will invest more than $28 billion to construct two new chip factories in Ohio, the company said on Friday, in a latest step to build out its contract manufacturing business and better compete with Taiwan Semiconductor Manufacturing Co.
Piper Sandler said that ON Semiconductor and Microchip Technology are its favorite analog names, while previewing the upcoming third quarter results of semiconductor companies.
The firm noted that AMD remains its top large-cap pick.