Semiconductor stocks declined Friday as the VanEck Semiconductor ETF briefly entered bear market territory, falling 20% from its recent high, while Apple briefly surpassed Nvidia as the world's most valuable company following an HSBC upgrade. HSBC raised Apple's price target to $366 from $260 and upgraded the stock to buy, citing the company's Apple Intelligence platform and expected product launches. The decline in semiconductor stocks reflects forced selling and profit-taking rather than deterioration in the AI investment narrative, according to CNBC Investing Club portfolio director Jeff Marks, amid broader rotation out of technology sector holdings.
HSBC Upgrades Apple Stock to Buy with $366 Price Target
HSBC upgraded Apple to buy and raised its price target to $366 from $260. The firm stated Apple's revamped Apple Intelligence platform, new AI features, and expected launches could fuel a major upgrade cycle. HSBC noted Apple can benefit from AI without the heavy capital spending weighing on hyperscalers, thanks to its partnership with Alphabet. Jeff Marks pointed to the approval of Apple Intelligence on devices in China as another catalyst, saying it expands access to features that encourage customers to upgrade to newer iPhones. The stock reached a record high Friday following a massive run over the past two weeks.
Intel Reports Earnings Next Week Amid 30% Monthly Decline
Intel reports earnings next week. The CNBC Investing Club will focus on continued strength in the company's CPU business and further progress in its foundry operations. Intel shares have fallen more than 30% this month as investors rotated out of semiconductor stocks. Jim Cramer called Intel his favorite stock and said he is still looking to "nibble" at current levels.
Portfolio Trims Corning and Exits Arm Holdings
The CNBC Investing Club's recent trim in Corning and exit from Arm have helped soften the impact of the semiconductor sector retrenchment. Jeff Marks said these actions give the portfolio cash to deploy if opportunities emerge. The portfolio director characterized the semiconductor decline as forced selling and profit-taking rather than any deterioration in the AI story.
FAQ
Why did semiconductor stocks decline Friday?
Semiconductor stocks fell as renewed concerns about artificial intelligence spending weighed on the technology sector. The VanEck Semiconductor ETF briefly entered bear market territory, down 20% from its most recent high, before recovering some losses. CNBC Investing Club portfolio director Jeff Marks said the decline reflects forced selling and profit-taking rather than any deterioration in the AI investment narrative.
What is HSBC's new price target for Apple?
HSBC raised Apple's price target to $366 from $260 and upgraded the stock to buy. The firm cited Apple's revamped Apple Intelligence platform, new AI features, and expected product launches as catalysts that could fuel a major upgrade cycle. HSBC noted Apple can benefit from AI without the heavy capital spending weighing on hyperscalers, thanks to its partnership with Alphabet.
