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What to Watch During the Semiconductor Sector's Big Earnings Week

By Jose Najarro – Oct 16, 2021 at 8:00AM

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Within the next few days, numerous semiconductor companies will report earnings.

Today's video focuses on stock price action, valuation metrics, and recent news affecting Intel (INTC 1.31%), Lam Research Corporation (LRCX 1.91%), Taiwan Semiconductor (TSM 1.12%), and ASML Holdings (ASML 0.35%). Here are some highlights from the video. 

  1. These four companies represent different segments of the semiconductor industry. ASML and Lam Research provide equipment to chip manufactures like TSM. TSM then goes down the line and manufactures chips for chip developers like Intel. 
  2. The companies report earnings on the following days: TSM on Oct. 14, ASML and Lam Research on Oct. 20, and Intel on Oct. 21. 
  3. When you look at the forward price-to-sales ratios for these companies, the most expensive is ASML, and the cheapest is Intel. The price-to-sales valuation correlates perfectly with expected growth for both companies. Intel is expected to show the least year-over-year growth, while ASML is expected to grow substantially compared to its peers.

Click the video below for my full thoughts and analysis. 

*Stock prices used were the closing prices of Oct. 13, 2021. The video was published on Oct. 14, 2021.


 

Jose Najarro has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Lam Research and Taiwan Semiconductor Manufacturing. The Motley Fool recommends ASML Holding and Intel and recommends the following options: long January 2023 $57.50 calls on Intel and short January 2023 $57.50 puts on Intel. The Motley Fool has a disclosure policyJose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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