5 Top-Rated Chip Stocks: Are They Buys After Rough Market Day?
Semiconductor stocks are broadly down as major stock market indexes slip. Even top-rated chipmakers gave back gains in Tuesday afternoon trading. Some are near buy points, with the overall market still in a confirmed uptrend — but touchy amid weak China trade news and other economic concerns. In context, the profit-taking in chip stocks follows their 20% rally off February lows. Macom Technology ( MTSI ), an IBD Leaderboard stock and one of many Apple ( AAPL ) suppliers, was down 4% in afternoon trading in the stock market today , putting it just below buy range from a double-bottom base with a buy point of 41.42. Macom makes radio frequency chips for networks and cellular systems, among other things. It’s still up 8% this month. Broadcom ( AVGO ) gapped up Friday after its strong earnings report , and the IBD 50 stock is now logging a second day easing from that jump. It’s in buy range above a 138.79 buy point from a double-bottom base. Broadcom, recently merged with Avago Technologies, sells a broad range of analog and digital chip solutions. And it’s another supplier to Apple, which has an expected iPhone SE reveal event March 21 . Cirrus Logic ( CRUS ), a fabless chip supplier and yet another vendor to Apple, is trading about 9% under a potential buy point from a nine-month consolidation pattern, after its 4.5% drop intraday Tuesday. Mellanox Technologies ( MLNX ) was down almost 1% in afternoon trading, in buy range from a cup-with-handle base. The Apple supplier has given back early-March gains the last four days, after gapping up sharply in late February. Mellanox sells high-performance, end-to-end interconnect solutions for data center servers and storage systems. Nvidia ( NVDA ), down a little over 1% Tuesday and now about 6% under a buy point, is a maker of graphics chips used in gaming and with a growing specialty helping to power self-driving cars and advanced car safety systems. The IBD 50 company is a partner to electric car maker Tesla Motors ( TSLA ), among many other auto manufacturers, with its technology going into Tesla’s big-screen infotainment consoles. Chip Stock Charts As the market has recovered, many chipmakers have moved above their key 50-day moving averages. In this video, we cover how some top-ranked semiconductor stocks opened the week, through Monday’s closing bell: Loading the player… IBD’s Electronics-Semiconductor Manufacturing industry group was down 2% intraday Tuesday, while the S&P 500 index was off nearly 1%. RELATED: Samsung Galaxy S7: Qualcomm, Qorvo Displace Cirrus Logic, Broadcom