Stocks In 5 Phases Of Computer Chip (semiconductor) Production UP +6% In January

An Introduction

There are 5 steps in the development and production of computer chips and they are grouped into 5 portfolios below with information on how each of their constituents performed in January, in descending order, as follows:

1. The Pure-Play Semiconductor Supplier Stocks Portfolio: UP 11.1% in January
   • its constituents provide essential equipment for manufacturing chips such as lithography machines, etching, test and packaging equipment, automation and inspection systems and production materials such as chemicals, gases, wafers and packaging.
   • its 5 constituents performed as follows: KLAC Corp. (+17.2%); Lam Research (+12.2%); Applied Materials (+10.9%); ASML Holding (+6.7%); and Entegris (+2.5%).
   • Articles on Biggest Movers:
     • Unpacking Q3 Earnings: KLA Corporation In The Context Of Other Semiconductor Manufacturing Stocks
     • Lam Research Q2 Earnings Beat: Can Strong Guidance Lift the Stock?
     • Applied Materials Is a Trending Stock: Facts to Know Before Betting on It
   • Go HERE for:
     • a live chart (updated minute-by-minute) of each constituent in the portfolio (Not yet available)
2. The EDA Software Chip Design Stocks Portfolio: UP 4.7% in January
   • its constituents are involved exclusively (i.e. pure-play) in the custom design of complex semiconductor chips using sophisticated electronic design automation (EDA) software.
   • its 2 constituents performed as follows: Synopsys (+8.3%) and Cadence Design Systems (-0.9%).
   • Article on Biggest Mover:
     • Synopsys Exceeds Market Returns: Some Facts to Consider
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     • a live chart (updated minute-by-minute) of each constituent in the portfolio (Not yet available)
3. The Pure-Play Fabless Semiconductor Stocks Portfolio: UP 2.8% in January
   • it consists of companies that outsource the fabrication (or fab) of chips to specialized foundries while designing and selling the chips themselves.
   • its 6 constituents performed as follows: Qualcomm (+12.6%); Monolithic Power Systems (+9.6%);  Marvell (+2.2%); Broadcom (-4.6%); Nvidia (-10.5%); and Advanced Micro Devices (-13.7%).
   • Articles on Biggest Movers:
     • Qualcomm Is Bound to Be a Winner No Matter What Happens to the Market This Year
     • Is Monolithic Power Systems High Growth Semiconductor Stock That Is Profitable?
     • Nvidia Stock Trades Down, Here Is Why
     • One of the main reasons for the decline in January for Advanced Micro Devices was increased competition in the AI chip market, where AMD has struggled to keep up with rivals like Nvidia. Nvidia’s dominance in the AI chip market, with an 84% share compared to AMD’s 5%, has put pressure on AMD’s stock and, in additionally, AMD’s financial performance has been mixed, with some investors concerned about its ability to capitalize on the growing demand for AI graphics cards used in data centers
   • Go HERE for:
     • a live chart (updated minute-by-minute) of each constituent in the portfolio
4. The Pure-Play Semiconductor Foundries Portfolio: UP 2.4% in January
   • it consist of factories (called foundries in semiconductor jargon) that concentrate all their efforts in the manufacturing of chips based on the designs provided by other semiconductor companies.
   • its 4 constituents performed as follows: Taiwan Semiconductor (+8.5%); GlobalFoundries (-3.4%)
   • Tower Semiconductor (-5.1%); and United Microelectronics (-10.9%).
   • Reasons for Major Price Changes:
     • Taiwan Semiconductor‘s Q4 earnings report not only beat Wall Street’s expectations but also delivered better-than-expected guidance for the first quarter of 2025.
     • United Microelectronics’ decline was due to the broader market downturn affecting the semiconductor industry as a whole, concerns about macroeconomic conditions, and competitive pressures despite UMC’s solid financial performance and positive earnings revisions.
   • Go HERE for:
     • a live chart (updated minute-by-minute) of each constituent in the portfolio
5. The Pure-Play Outsourced Semiconductor Assembly and Test Stocks Portfolio: DOWN 2.8% in January
   • it consists of companies that assemble chips into finished semiconductor components, tests for defects and do the very specialized packaging of the chips for shipping assembly.
   • its 2 constituents perform as follows: ASE Technology (+0.8%); and Amkor Technology (-4.2%).
   • Go HERE for:
     • a live chart (updated minute-by-minute) of each constituent in the portfolio (Not yet available)

On average, these 5 portfolios were UP 6.4% in January.

In addition, there are 2 other portfolios in the Ai hardware category:

1. The Integrated Device Manufacturers (IDM) Portfolio: DOWN 0.2% in January
   • it consists of companies that do everything themselves, i.e. are not pure-play, to control the entire production process.
   • its constituents performed as follows:
   • Micron Technology (+8.4%); Infineon Technologies (+1.0%); NXP Semiconductors (-0.3%); Analog Devices (-0.3%);  Texas Instruments (-1.5%); Intel Corp. (-3.1%); Microchip Technology (-5.3%); and STMicroelectronics (-10.1%).
   • Articles on Biggest Movers:
     • Micron Technology Stock Outlook: Is Wall Street Bullish or Bearish?
     • STMicroelectronics’ reported Q4 revenue down 22.4% year-over-year, net income down 63% and its Q1 2025 outlook missed analyst expectations. The slowdown in industrial and automotive demand, especially in Europe, continues to drag on performance, and the book-to-bill ratio is still underwater.
   • Go HERE for:
     • a live chart (updated minute-by-minute) of each constituent in the portfolio (Not yet available)
2. .The Pure-Play Quantum Computing Stocks Portfolio: DOWN 15.9% in January
   • it consists of companies involved exclusively in the research and development of quantum computers.
   • its 4 constituents performed as follows: IonQ (-5.5%); Rigetti Computing (-13.7%); D-Wave Computing (-29.3%); and Quantum Computing Inc. (-37.3%).
   • Article on Reason for Decline:
     • 4 Quantum Computing Stocks Heating Up in 2025
   • Go HERE for:
     • a live chart (updated minute-by-minute) of each constituent in the portfolio (Not yet available)

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