Great news for chip stocks
Semiconductor-maker ASML has boosted guidance across the board. Given its diverse clientele, this is huge for the sector.
When ASML (ASML) moves, when it says things are good, that ends the debate in semiconductor land. ASML has spoken, and it has spoken loudly: It's lifting guidance for orders across the board, for just about all important equipment, including flash, memory and logic chips.
The stock has led a semiconductor jailbreak over in Europe, moving up 8% and taking every stock along with it.
As someone who's extremely bullish on semiconductors, I would have been happy just hearing how companies that make chips for Apple (AAPL) are strong. But ASML makes products that give you a read on companies as varied as SanDisk (SNDK), Micron (MU), Broadcom (BRCM), Advanced Micro Devices (AMD), Nvidia (NVDA) and all the rest of the gang.
During the mild day that was Wednesday and the reversal that occurred Tuesday, the semis acted quite well. Despite negative chatter Wednesday about Texas Instruments' (TXN) increasingly narrow trading range, its stock went up, too. Technology distributor Avnet (AVT) continues to say that things are much stronger than it can recall, and we know that demand for all things Apple is well above plan. Wednesday we learned from Corning (GLW) that even television glass, which was supposed to be weak, is holding in.
I reiterate that the semiconductor space remains an amazing place to be. Many semiconductor companies simply can't meet the demand. That's why you place billions of dollars in orders for capital equipment from ASML, and that's why the group is going to go higher.
Random musings: Look for the red-hot apparel cohort to get a boost from Lululemon Athletica's (LULU) great numbers today. I think that Nike (NKE) will get another run and that people will circle back to Deckers Outdoor (DECK) -- and, of course, Under Armour (UA) -- which are all good stocks because of what Dick's Sporting Goods (DKS) has been saying.
At the time of publication, Cramer was long AAPL.
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