Semiconductor giants Intel (NASDAQ:INTC) and Nvidia (NASDAQ:NVDA) saw divergent fortunes on Wednesday. Meanwhile, U.S. Bancorp (NYSE:USB) shares rallied after beating earnings expectations.
In a volatile trading session Wednesday, semiconductor stocks saw significant movements, largely influenced by geopolitical tensions.
While most chip stocks tumbled, Intel Corporation bucked the trend. Meanwhile, Nvidia faced steep declines. U.S. Bancorp rallied on positive earnings, up 4.28% on the day at the time of writing.
Intel Corporation Becomes a Notable Exception as Other Semiconductor Stocks Decline
Intel Corporation shares surged 3.63% to $35.58, outperforming its peers in the semiconductor sector. The company, with a market capitalization of $151.468 billion, is viewed as a potential beneficiary amid rising tensions surrounding Taiwan.
Intel’s foundry business, a key component of CEO Pat Gelsinger’s turnaround strategy, aims to provide a U.S.-based alternative to Taiwan Semiconductor Manufacturing.
The company’s prospects were further bolstered by a proposed $8.5 billion in direct funding from the CHIPS Act, positioning Intel as a pivotal player in the U.S. government’s efforts to shore up domestic chip manufacturing capabilities.
Nvidia Corporation Plunges as Semiconductors Decline
Nvidia Corporation shares plummeted 5.35% to $119.60, dragged down by broader geopolitical concerns and potential new export controls.
The sell-off was triggered by former President Donald Trump’s comments suggesting Taiwan should pay for U.S. defense, sparking worries about the U.S. commitment to defend the island nation.
Additionally, reports of the Biden administration considering tighter export restrictions on chip technology to China further pressured the stock.
Despite the day’s losses, Nvidia maintains a robust market cap of $2.943 trillion and a forward-looking price target of $133.97.
U.S. Bancorp Reports Better-than-Expected Q2 Earnings
U.S. Bancorp shares climbed 4.28% to $45.15 following the release of its second-quarter earnings report. The bank, with a market capitalization of $70.517 billion, posted revenue of $6.87 billion, down 4.6% year-over-year but beating expectations by $60 million.
Earnings per share of $0.97 also exceeded estimates by $0.02. While net interest income declined, the bank saw improvements in noninterest income and average total deposits.
U.S. Bancorp’s positive momentum in deposit growth and fee income, coupled with an improved CET1 ratio and return on common equity, contributed to investor optimism.
The company projects full-year net interest income between $16.1 billion and $16.4 billion, with total noninterest income expected to rise in the mid-single digits.
***
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
This article was originally published on The Tokenist. Check out The Tokenist’s free newsletter, Five Minute Finance, for weekly analysis of the biggest trends in finance and technology.