The hottest chip company in the US stock market is going to increase its price, what signal? A-share chip stocks stage a "roller coaster", when will the inflection point appear?

ADI, the hottest chip company in U.S. stocks this year, may raise prices for some chip products!

Although ADI stressed that the price increase is not to expand profit margins. But the move still allows the market to link the company to the signal disclosed in the company's third-quarter report released recently. The company's third-quarter revenue and earnings per share beat market expectations, and industrial, automotive and communications revenue hit a new high, but the company also mentioned that economic uncertainty began to affect product bookings. This has made the market's sentiment towards U.S. stock chip stocks turn pessimistic again. Since late August, the stock prices of U.S. stock chip stocks have fallen back one after another.

In addition, the A-share semiconductor stocks that finally "raised their eyebrows" in August have also risen and fallen recently, staged a "roller coaster" market. According to statistics, the Wind Chip Index (884160.WI) once rose by more than 12% within the month. However, in late August, individual stocks in the industry generally retreated. As of August 29, the Wind Chip Index had all retreated and fell slightly. 0.21%. Dagang shares, which have the strongest trend, have risen by more than 165% in the month, and have now fallen back to 67%.

For the rebound of semiconductor stocks in early August, some analysts believe that valuation repair may be the main reason. From the perspective of industry prosperity, many fund managers believe that the cyclical inflection point of the semiconductor industry may appear next year.

Chip price hikes re-emerge

According to Wall Street News, the American analog chip giant ADI recently issued a price adjustment letter to its distributors, saying that "due to the inflation of the supply chain in the past year, although we tried our best to reduce the impact on end customers and did not raise prices, now we We must increase the price of some models of chip products to maintain our gross profit margin level." ADI emphasized that the price increase is not to expand profit margins.

It is worth noting that, compared to Micron Technology, Nvidia and other chip manufacturers with close consumer relations, ADI mainly produces high-end analog chips that can be used for heat source management and thermal control, and the target market is mainly industrial and automotive fields, which are in In the current situation of weak demand in the consumer electronics terminal market, the impact can be avoided to a certain extent. Therefore, ADI is a U.S. chip stock that has received a high degree of attention during the year, and it is the only large-cap stock that has achieved positive returns in the Philadelphia Semiconductor Index this year before releasing its earnings report on August 17.

ADI said that revenue in the third quarter rose 77% year-on-year, surpassing $3 billion for the first time; adjusted earnings per share rose 47% to a record high of $2.52, both exceeding analysts' previous expectations.

However, ADI also mentioned in the earnings report that economic uncertainty began to affect product bookings. In the ensuing conference call, ADI further noted that the company's order intake "slowed" at the end of the second quarter, with "a slight increase in order cancellations." A shaky business outlook also led ADI to forecast revenue of $3.15 billion in the current quarter, just 1% above analysts' estimates and down from the 5% average for the previous four quarters.

As ADI expressed concerns about the company's business prospects, the stock price fell by nearly 6% during the day, and finally closed down 4.98%. As of the latest trading day, ADI's stock price has fallen from the year's high just set in mid-August. over 10%. In addition, market investors' pessimism about chip stocks seems to have further intensified. Since late August, US semiconductor stocks such as Intel, Nvidia, and Micron Technology have fallen.