Four chip names including Nvidia and Taiwan Semiconductor Manufacturing are getting bullish analyst views, even as those stocks struggle.
The Rising Profit Estimates list in the IBD Stock Screener found those and other chip stocks that are trading below their 50-day moving averages. Moves below those support levels caused sell signals, as the sector saw massive selling last week. Yet analysts remain bullish on their profit outlooks.
Other notable chip stocks on the screen include Broadcom and KLA.
Taiwan Semiconductor and other semiconductor stocks sold off on July 17 after former President Donald Trump said Taiwan should pay for its own defense.
Chips stocks fell further on Wednesday, after executives at Meta Platforms and Google parent Alphabet warned that their companies may be spending too much on artificial intelligence. But they added that the risks of underinvestment are even greater.
Nvidia Stock Tightening Up
Nvidia stock had a downside reversal and plunged below its 50-day line Wednesday amid broad chip-sector weakness. The IBD Leaderboard name is about 5% below the line. Despite the weak action, Nvidia stock remains extended from the most recent 92.22 and 97.40 buy points.
Analysts see robust 108% earnings growth for Nvidia in fiscal 2025, then 37% in fiscal 2026. Nvidia's quarterly profit growth is waning, with its current-quarter earnings expected to increase 137%, then taper to 75%, 50% and 35% growth in the following three quarters.
Taiwan Semiconductor, also known as TSMC, is about 4% below its 50-day line. Shares remain above a 148.43 buy point but have erased most of their 30% gain from the entry.
TSMC's full-year profit expectations in MarketSurge now show a 22% increase with a 27% rise in 2025 EPS. The company's full-year earnings-per-share forecast has been revised up to $6.41, or 22% growth, and $8.13, or 27% higher, in 2025.
Taiwan Semiconductor beat second-quarter profit and sales expectations on July 18. Its quarterly profit rose in the last two quarters after four straight quarters of declines vs. strong year-ago results.
Broadcom, KLA Hold Above Buy Zones
Broadcom, which had climbed more than 25% from a 143.62 buy point, is now only about 5% above that entry.
Analysts' consensus earnings estimate for the fiscal year ending in October are for a 13% increase, more than doubling to a 27% increase in fiscal 2025.
Quarterly earnings growth estimates are accelerating, with 15% growth expected in the July-ending quarter, following four quarters of single-digit growth. The October-ending quarter's estimate is for 25% EPS growth, then 33% and 34% increases in the following two periods.
KLA has spent a couple of weeks below the 50-day line. The stock is 8% above the 729.15 entry of a flat base.
Analysts expect EPS for the fiscal year that ends next June to jump 26% then 14% in fiscal 2026. KLA topped fiscal fourth-quarter earnings and sales estimates on July 24. It also issued current-quarter profit and revenue guidance exceeding analysts' forecasts.
The green upward arrow next to the full-year profit estimates on the MarketSurge charts indicates annual earnings estimates have been recently revised up.
Follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
