Analysts are more often late on the buy calls, issued after the stock’s big move. Similarly, the sell calls come after the stock fell. With that in mind, Bank of America revised its semiconductor stock ratings.
BofA said it expects intra-sector rotation. Citing generative AI, more complex chips, reshoring away from China, the CHIPS act, and rising chip use in automotive, it believes the chip inventory correction ended its course.
The firm upgraded AMD, Micron (MU), and MACOM Technology (MTSI) from neutral to buy. Intel (INTC) now has a neutral rating, up from underperform. INTC stock traded as low as ~$32 in late October and rallied to $45.18. It is just 4.02% away from its 52-week high.
UBS called Nike (NKE) among the biggest detractors from the past two years in its U.S. Equity Strategy report. NKE stock returned -18.5% contributing to -0.18% on the S&P 500 (SPY).
Costco (COST) issued a special dividend worth $6.7 billion or $15.00 a share. Wall Street analysts upgraded the stock after the earnings report. COST stock is up 1.9% to nearly $643 in pre-market trade. The stock is about to break its 1-year high and is up 38.18% YTD.
JP Morgan cut BlackRock to neutral. It cited overblown fixed-income expectations for the downgrade. BLK stock is 1.11% to $798.15.
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