CNBC's "Fast Money" Chips Trade At Its Peak?... And UnitedHealth Drops After Earnings 10/15/24
Oct 15, 2024
Dan Niles, founder and portfolio manager of Niles Investment Management, discusses the recent downturn in chip stocks, particularly ASML’s warning about weak sales in China. He examines if the semiconductor surge has peaked and where potential investment opportunities might lie. Sarah James, Managing Director at Cantor Fitzgerald, analyzes UnitedHealth's troubling earnings report, emphasizing rising medical costs and its worst day since the pandemic, sparking discussions about future strategies in the healthcare sector.
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Chip Market Slowdown
- ASML, a semiconductor equipment maker, reported a significant drop in bookings and lowered their sales forecast, impacting chip stocks.
- This suggests a potential slowdown in the semiconductor market, particularly in non-AI segments.
Cyclical vs. Secular Chip Trends
- The semiconductor industry is experiencing a cyclical downturn with a chip glut and inventory buildup.
- This contrasts with the secular growth of AI, creating different dynamics within the chip market.
Evaluating Semiconductor Investments
- Consider the bigger picture when analyzing the semiconductor sector, including the revenue outlook for major tech companies.
- Look beyond immediate demand and consider long-term revenue generation potential when evaluating chip-related investments.