Semiconductor Stocks Rise After China Approves Analog Devices-Maxim Deal – Investor's Business Daily
BREAKING: Stocks End Week On Bullish Note
Semiconductor stocks rose Monday after Chinese regulators approved the Analog Devices (ADI) acquisition of Maxim Integrated Products (MXIM). The news is positive for other chip deals awaiting government approval in China.
Wilmington, Mass.-based Analog Devices announced Monday that China’s State Administration for Market Regulation gave antitrust clearance for Analog Devices’ purchase of Maxim. Analog Devices announced the $21 billion acquisition in July 2020.
Every company that has significant exposure to the Chinese market — the world’s biggest for chips — must get approval from Chinese regulators when they merge with or acquire another company. The U.S., European Union and other markets have similar requirements.
Analog Devices expects to close the Maxim deal this week, now that it has received all required regulatory clearances.
Get these newsletters delivered to your inbox & more info about our products & services. Privacy Policy & Terms of Use
San Jose, Calif.-based Maxim is strong in chips for the automotive and data center markets, while Analog Devices serves broad industrial, communications and health care markets.
On the stock market today, ADI stock rose 1.8% to close at 169.63. Maxim stock popped 4.9% to 106.63.
The Philadelphia semiconductor index, known as SOX, rose 2.6%. The SOX includes 30 semiconductor stocks.
The Analog Devices news lifted other semiconductor stocks with pending acquisitions requiring clearance in China. Those deals include the Advanced Micro Devices (AMD) purchase of Xilinx (XLNX) and the Nvidia (NVDA) purchase of Arm Holdings.
AMD stock rose 3.9% to 108.77. Xilinx stock advanced 6.4% to 153.52. Nvidia stock increased 5.5% to 219.58.
Among other semiconductor stocks on the move Monday was beleaguered chip giant Intel (INTC). Intel announced that the U.S. Department of Defense has signed on as a customer of its planned foundry business.
Intel stock rose 2.4% to close at 53.23.
The Defense Department awarded Intel a contract to provide commercial foundry services as part of its Rapid Assured Microelectronics Prototypes — Commercial (RAMP-C) program. The RAMP-C program aims to develop a leading-edge domestic commercial semiconductor foundry ecosystem.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
YOU MAY ALSO LIKE:
Adobe, Microsoft Advance As Wall Street Applauds Strategic Moves
Chip Gear Maker Applied Materials Blows Past Quarterly Targets
Is AMD Stock A Buy After Chipmaker’s Second-Quarter Earnings Report?
Find Winning Stocks With MarketSmith Pattern Recognition & Custom Screens
See Stocks On The List Of Leaders Near A Buy Point
10:38 AM ET The major indexes suffered weekly losses but bulls battled back Friday afternoon. Tesla rivals and Nvidia CEO Huang are on…
10:38 AM ET The major indexes suffered weekly losses but bulls battled back…
The view that Apple lacks a clear AI game plan has weighed on Apple Stock. (© Jon Krause)
Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20!
Get market updates, educational videos, webinars, and stock analysis.
Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content.
Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the stocks they discuss. The information and content are subject to change without notice.
*Real-time prices by Nasdaq Last Sale. Realtime quote and/or trade prices are not sourced from all markets.
Ownership data provided by Refinitiv and Estimates data provided by FactSet.
© 2000-2024 Investor’s Business Daily, LLC. All rights reserved
