ON Semi jumps after results while Nvidia hits 13 month high

(Reuters) – ON Semiconductor’s shares jumped 7% on Monday after the chipmaker’s quarterly guidance beat Wall Street’s expectations, spurring other chip stocks with heavyweight Nvidia (NASDAQ:) hitting its highest level in over a year.

With investors looking for signs of when a downturn in global chip revenue may bottom out, ON Semiconductor’s quarterly results and guidance beat analysts’ expectations even as the supplier of chips for automobiles and industry said it was taking a “cautious stance” to its outlook because of macroeconomic uncertainty.

Graphic: Chip stocks outperform on Wall Street – https://fingfx.thomsonreuters.com/gfx/mkt/klvygjgxzvg/Pasted%20image%201682959398308.png

While the mid-point of ON Semiconductor’s guidance for quarterly revenue between $1.975 billion and $2.075 billion implies a 3% dip from the year-ago quarter, it exceeded analyst expectations for a 7% drop, and it helped lift shares of other chipmakers.

The Philadelphia Semiconductor index climbed 0.7%, outperforming the Nasdaq’s 0.1% rise. Nvidia, the world’s most valuable chipmaker, climbed 3.5% to its highest since March 2022.

Lattice (OTC:) Semiconductor rose 1.8% ahead of its quarterly report expected after the bell.

Investors will look for additional readings on the health of the chip industry with more players set to report this week, including Advanced Micro Devices (NASDAQ:) on Tuesday, Qorvo (NASDAQ:) and Qualcomm (NASDAQ:) on Wednesday and Cirrus Logic (NASDAQ:) on Thursday.

The Philadelphia chip index has rebounded nearly 40% from its closing low in October 2022, but is down 25% from its high in 2021.