Semiconductor stocks are seeing a strong upward move during trading on Thursday, as upbeat earnings from sector components Teradyne (TER) and Cirrus Logic (CRUS) are boosting buying interest in the sector.
The strength in the semiconductor sector is reflected by the 1.2 percent gain currently being shown by the Philadelphia Semiconductor Index. The index remains in a range near a three-year closing high set earlier this month.
The index is being led higher by shares of Teradyne and Cirrus Logic, which have surged up by 9.6 percent and 9.5 percent, respectively.
Teradyne is moving higher after reporting adjusted fourth quarter earnings of $0.37 per share on revenues of $322.17 million, exceeding analyst estimates for earnings of $0.25 per share on revenues of $316.31 million
Looking forward, the company expects first quarter earnings between $0.26 and $0.31 per share. Analysts had expected the company to earn $0.19 per share for the quarter.
The company also said it expects to generate revenue in a range of $350 million to $375 million for the first quarter, while analysts had expected revenues of $299.99 million.
Cirrus Logic is advancing after its third quarter earnings and revenues beat expectations and its revenue guidance for the fourth quarter was better than expected.
The company reported third quarter earnings of $0.34 per share, higher than expectations for $0.32 per share. Revenues for the quarter totaled $95.6 million, also above forecasts that called for $91.66 million.
"Looking at both the fourth quarter and the next fiscal year, we believe we will continue to grow revenue at a faster rate than the semiconductor industry as a whole." said Jason Rhode, president and chief executive officer of Cirrus Logic.
For the fourth quarter, Cirrus Logic said it expects revenue in a range between $88 million and $94 million. Wall Street analysts had expected revenues of $85.6 million.
In other action within the sector, Micron Technology (MU), STMicroelectronics (STM), Avago Technologies Limited (AVGO) and Applied Materials (AMAT) are also seeing strong gains, further boosting the semiconductor sector.
Meanwhile, Lam Research (LRCX), Veeco Instruments (VECO) and Nvidia (NVDA) are among the weak links in the sector on the day.
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