Broadcom (NASDAQ:AVGO)
On Wednesday, semiconductor stocks in the S&P 500 were led higher by Broadcom (NASDAQ:AVGO), as the sector, along with the larger market, anticipated the most recent interest rate decision and forecast from the Federal Reserve.
Fundamentals for the semiconductor business “essentially held in better than predicted,” according to a research note published on Wednesday by Deutsche Bank analyst Ross Seymore. This statement was based on that sales for firms (excluding memory) were up 14% in 2022. Because of the likelihood of “further fundamental degradation,” the recent surge in semiconductor stock prices was “premature,” given that a revenue decline is anticipated for the following year. Additionally, it is anticipated that there would be “continued fundamental deterioration.”
Seymore went on to say that the companies Marvell Technology (MRVL) and Qualcomm (NASDAQ:QCOM), together with Broadcom (AVGO), and Maxlinear, are the ones that Deutsche Bank is most excited about for the next year (MXL).
Broadcom stock, located in San Jose, California, had its share price increase by over 2% to $581.69 during the middle of the trading day. At the same time, rivals Qualcomm (QCOM) and Intel (NASDAQ:INTC) saw their share prices increase by between 0.5% and 1.5%.
On the other hand, shares of Advanced Micro Devices (AMD) and Nvidia (NASDAQ:NVDA) fell by less than one percent.
The performance of analog chip makers Texas Instruments (TXN) and Analog Devices (ADI) was uneven. Shortly after 12 o’clock in the afternoon, Texas Instruments was marginally positive. At the same time, Analog Devices (ADI) declined by a fraction of one percent.
Micron Technology (MU), NXP Semiconductor (NXPI), and Microchip Technology (MCHP) were among the other semiconductor firms that had fractional gains or losses.
It is generally anticipated that the Federal Reserve and its interest rate-making body, the Federal Open Market Committee, would increase the primary interest rate by fifty basis points and provide an update on their predictions for the outlook for the year 2023.
It was reported earlier in the week that three of the most senior executives of the business software company VMware (VMW), which is an acquisition target for Broadcom stock, had left their positions.
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Author Shariq Khan 
