Semis
Semiconductors sold off sharply on FOMC day uncertainty, with SOXX dropping 5.92% and Intel and AMD leading the decline. The macro-driven rout creates a potential divergence trade given AMD's strong fundamentals versus Intel's near-zero earnings.
0 reads·4 theses
The AngleGenuinely two-sided
Bull caseINTC · SOXX
AMD's 34.3% YoY revenue growth and $2.65 diluted EPS give it a genuine earnings engine that should attract buyers faster post-selloff, while INTC's -$0.06 EPS and restructuring drag leave little fundamental support.
Bear caseINTC · SOXX
INTC, already deeply de-rated and with low expectations baked in, could outperform AMD on any market bounce precisely because its bad news is well-known and AMD still carries a premium multiple vulnerable to further rate-driven multiple compression.
Both sides — weigh them yourself