Short Sellers Bet Against Semiconductor Giants

By Chris Lange Published Feb 26, 8:25AM EST

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The short interest data have come out for the February 13 settlement date. Recent short interest moves show that investors now seem to be doubting the semiconductor industry, after the previous short interest report was fairly positive. However, this could also be the result of the S&P 500 hitting new highs during this period. It is important to note that semiconductor trends are considered to be leading indicators of technology and broader electronics demand.

Intel Corp. (NASDAQ: INTC) saw its short interest increase by about 4 million shares to 131.7 million, with 5.8 days to cover. The previous level was 127.5 million shares, with 3.4 days to cover. During this time, shares of Intel continued to slide lower off a 52-week high from December. Shares closed Wednesday at $33.95, in a 52-week trading range of $24.30 to $37.90.

Advanced Micro Devices Inc. (NASDAQ: AMD) had its short interest fall to 104.2 million shares, with 4.6 days to cover, compared to the previous reading of 126.8 million shares and about 3.9 days to cover. Shares of Advanced Micro Devices closed Wednesday at $3.10. The 52-week trading range is $2.14 to $4.80.

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Qualcomm Inc. (NASDAQ: QCOM) saw its short interest increase to 15.9 million shares, with one day to cover, compared to the previous period, which reported a reading of 12.7 million shares, with one day to cover. The previous reading is the lowest short interest has been in the past year. The only other reading that comes close was posted after the market sell-off in October. Qualcomm shares closed Wednesday at $71.68, in a 52-week trading range of $62.26 to $81.97.

Applied Materials Inc. (NASDAQ: AMAT) saw its short interest increase to 76.3 million shares, with 5.4 days to cover, for the February 13 settlement date. The previous reading was 72.0 million, with 5.8 days to cover. The stock closed Tuesday at $25.10, in a 52-week trading range of $18.27 to $25.71.

Micron Technology Inc. (NASDAQ: MU) saw its short interest fall to 76.5 million shares, with 3.6 days to cover. Short interest has been in a constant decline since the mid-September settlement date, excluding the mid-January reading of 94.4 million with 2.9 days to cover. On the year, the highest short interest reading was 125.3 million in July. Shares of Micron closed Wednesday at $30.48, in a 52-week trading range of $21.02 to $36.59.

SanDisk Corp. (NASDAQ: SNDK) was another one of the chip stocks that had its short interest increase, but only slightly, in mid-February. The reading was 15.6 million shares, with 4.4 days to cover, compared to the previous reading of 15.3 million, with 2.5 days to cover. Shares closed Wednesday at $79.04, in a 52-week trading range of $73.03 to $108.77.

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Broadcom Corp. (NASDAQ: BRCM) saw its short interest increase to 6.5 million shares, with 1.0 days to cover, versus the previous short interest level of 5.7 million, with 1.0 days to cover. It is worth noting that these past five short interest readings have been the lowest of the year. Broadcom shares closed Wednesday at $45.00 and have a 52-week trading range of $28.86 to $46.01.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.