Latest From Tech Sector a Boost for 4 Holdings
In the midst of the trade war, new updates from a pair of tech names strengthen some of our theses.
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While DRAM supplier SK Hynix HXSCF posted consensus-topping quarterly results early on Thursday morning, the company warned that macroeconomic uncertainties including U.S. tariff policy have created demand volatility that will impact the second half of the year. Candidly, we would be surprised if SK didn’t say something along those lines given trade deal uncertainty and the prospect for tariffs to remain in place.
Even so, SK shared that it still sees demand from consumer electronics (PCs, smartphones, tablets), benefitting from the launch of new products that feature AI functionalities this year. This likely reflects the typical launch of new products we see as we exit the summer and get ready for the holiday shopping season. We see that as a positive note for our shares of Apple AAPL, Qualcomm QCOM and Universal Display OLED, and we continue to think rising AI adoption will lead to greater network capital spending, benefitting our shares of Marvell MRVL.
SK’s comments also set up quarterly earnings from Intel INTC after Thursday's market close. On Wednesday, we shared that new CEO Lip-Bu Tan is likely to deliver “kitchen sink” guidance and we still think that is the case.
LG Display Supports Universal Display Thesis
Tucked inside quarterly results on Thursday morning from LG Display LPL were a few positive data points regarding the accelerating shift for the use of organic light-emitting diode displays.
Revenues increased by 15% year on year as shipments of organic light-emitting diode panels for TV, IT and mobile devices. LG also shared that OLED products accounted for 55% of its total revenue in the March quarter up from around 50% in the year-ago quarter. We recently picked up more Universal Display shares for the Portfolio at $116.27.
More Pro Portfolio
- We're Buying Shares of These 6 Holdings Ahead of Sector-Specific Tariffs
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At the time of publication, TheStreet Pro Portfolio was long AAPL, QCOM, OLED and MRVL.
