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Below are AI-generated insights on moves in the information technology sector, powered by MarketReader technology.

Thursday, August 1

VGT [-1.9%]
The Vanguard Information Technology ETF (VGT) has declined by 1.9% today, reflecting broader market trends as the S&P 500 Index has also dropped significantly. Key contributors to VGT's performance include Nvidia, which fell sharply amid concerns over insider activity following its CEO's stock sale, and Qualcomm, which, despite reporting strong earnings, faced a premarket decline due to potential export license issues with Huawei. Other notable declines were observed in AVGO, AAPL, and AMD. Additionally, macroeconomic indicators are unfavorable; the ISM Manufacturing PMI fell below expectations to a 30-week low, while construction spending decreased for the second consecutive month, reaching a 48-week low.

TSM | $161.24 | -2.8% | -115.5B

NVDA | $113.29 | -3.3% | -92.5B

AAPL | $220.51 | -0.7% | -22.6B

NVDA | -3.3% | -92.5B
NVIDIA Corp's stock has dropped significantly, reflecting broader market trends. CEO Jen Hsun Huang sold $26.4 million in common stock, executing transactions involving 240,000 shares on July 29 and an additional 120,000 shares on July 30, with prices between 102.85 and 111.42. Such insider activity may raise concerns among investors regarding the company's stock performance. Concurrently, the ISM Manufacturing PMI reported a lower-than-expected value of 46.8, signaling a contraction in factory activity. Construction spending also fell by 0.3%, marking two consecutive months of decline. Additionally, initial jobless claims rose to nearly a 12-month high, with 249,000 individuals claiming unemployment benefits, suggesting a softening labor market that could lead to potential Federal Reserve rate cuts.

QCOM | -7.4% | -13.9B
Qualcomm reported Q3 2024 adjusted earnings per share of 2.33, exceeding the 2.25 estimate, with sales of 9.39 billion surpassing the forecast of 9.217 billion. For Q4, the company projects revenues between 9.5 billion and 10.3 billion, slightly below the 9.7 billion estimate, while adjusted EPS guidance ranges from 2.45 to 2.65. The company cautioned about an adverse impact due to the U.S. revoking an export license for Huawei, which is expected to affect Q4 and Q1 results. Following these announcements, Qualcomm shares declined in premarket trading by 1.6%. Concurrently, the U.S. ISM Manufacturing PMI came in at 46.8, below expectations, and initial jobless claims rose to near a 12-month high of 249,000, both contributing to broader market volatility. The Russell 2000 Index has dropped significantly, reflecting a negative sentiment that may also be impacting Qualcomm's stock performance, which has fallen by 7.1%.

AMAT | -6.5% | -10.7B
Applied Materials Inc has experienced a significant decline, moving lower alongside the broader market. The company is currently down as Qualcomm Inc has also seen a notable drop, reflecting negative sentiment within the semiconductor sector. Compounding this downward movement, Applied Materials was denied funding under the U.S. Chips Act for its proposed $4 billion research and development center in Sunnyvale, California. This decision by the U.S. Commerce Department impacts the company's strategic plans, as it had anticipated federal support for the project. Additionally, the latest ISM Manufacturing PMI data indicates a contraction in U.S. factory activity, further contributing to the overall market's adverse conditions.

CWAN | +16.0% | +892.0M
Clearwater Analytics Holdings Inc is currently experiencing a notable increase in share price, up significantly since Wednesday, while outperforming its sector peers. The company reported second quarter adjusted EPS of $0.10, aligning with analyst expectations and reflecting a substantial year-over-year increase. Revenues reached $106.79 million, slightly exceeding estimates and marking a significant rise from the previous year. Clearwater also provided optimistic Q3 revenue guidance of $113 million to $114 million, surpassing consensus estimates, along with FY24 revenue guidance above expectations. In addition, Wells Fargo has raised its price target for Clearwater from 22 to 23, maintaining an Overweight rating. The trading volume today has been unusually high, further underscoring the market's response to these developments.

LRCX | -8.2% | -9.1B
Lam Research Corp reported its Q4 2024 earnings, posting an adjusted EPS of 7.78, surpassing the consensus estimate of 7.58. Revenue reached 3.87 billion, exceeding expectations of 3.82 billion and reflecting a significant year-over-year increase. Despite these positive results, the stock has declined sharply, coinciding with a broader market downturn and underperformance relative to sector peers. Wells Fargo and Morgan Stanley both lowered their price targets for Lam Research, now set at 1,000 and 929, respectively. The company’s Q1 guidance suggests an adjusted EPS between 7.25 and 8.75, below the estimate of 8.10, with projected revenue ranging from 3.75 billion to 4.35 billion against an estimate of 4.04 billion. Concurrently, the ISM Manufacturing PMI and US Construction Spending data reported negative trends, further influencing market sentiment.

TER | -5.5% | -1.4B
Teradyne Inc is experiencing a notable decline, moving lower in tandem with the broader market, which is also facing significant downward pressure. The company's stock has seen unusually high trading volume today. Contributing to this movement, the ISM Manufacturing PMI for the U.S. came in below expectations, indicating a continued decline in factory activity. Additionally, U.S. construction spending reported a decrease, missing forecasts for the second consecutive month. In the semiconductor sector, Teradyne's performance is further influenced by the substantial drop in the Direxion Daily Semiconductor Bull 3x Shares and a decline in Lam Research Corp, despite its strong earnings report. The Nasdaq 100 Index has also decreased, reflecting a challenging macro environment that could be impacting Teradyne's stock performance.

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