|Semiconductor stocks gain after Micron earnings beat, TSMC's $100B capacity plan|
Apr. 01, 2021 12:05 PM ET Brooks Automation, Inc. (BRKS) By: Brandy Betz, SA News Editor 9 Comments
The Philadelphia Semiconductor Index is up 2.3% compared to the 1.5% gain for the broader tech sector (NYSEARCA: XLK) after a positive earnings report from Micron, rumors of a Kioxia deal, and TSMC's $100B capacity expansion investment.
Micron reported upside fiscal Q2 results driven by particularly strong demand in mobile, industrials, and automotive. The company forecast a strong FQ3 as DRAM demand continues to outpace supply and NAND stabilizes.
Despite the current "severe" DRAM shortage, Micron plans to stick with its "conservative" capex strategy for the year.
Micron and memory peer Western Digital were at the center of one support saying the companies were considering separate bids for NAND giant Kioxia. But another report said Kioxia would prefer to pursue an IPO.
Foundry giant TSMC plans to spend $100B over the next three years to expand its fab capacity. TSMC had already forecast 2021 capex of $25-28B.
Top semiconductor movers today include semi equipment and adjacent names Brooks Automation ( BRKS +6.9%), Entegris ( ENTG +5.6%), Teradyne ( TER +3.6%), Lam Research ( LRCX +5.2%), Applied Materials ( AMAT +4.7%), KLA ( KLAC +3.4%), and ASML ( ASML +1.4%).
Related: Yesterday, semi stocks got a boost after President Biden unveiled a $2T infrastructure plan that requested a $50B investment in domestic semiconductor manufacturing.