Diamonds and Dogs

1/2/20

Chipmakers starting the New Year with a bang. The PHLX Semiconductor Index is up a percent to start 2020 following a 60% surge in 2019. AMD (AMD) is up 4% on an upgrade at Nomura with a $58 price target. Taiwan Semiconductor (TSM) is up 2.9% after the contract chipmaker said it will begin producing next generation chips for Apple's iPhone by the end of the second quarter. Taiwan semi and at least five other chip stocks are trading at new record highs.

Ducommun (DCO) feeling the pinch from the Boeing 737Max. The aerospace supplier to Boeing and Spirit AeroSystems is down 8% on a downgrade at B. Riley FBR. The analyst lowered his price target to $55 a share due to the absence of guidance with a hard stop for 737 MAX parts shipments this quarter. The 737 platform comprises around 18% of totals sales or $130 million for Ducommun.