3 Chip Stocks to Note Now: Intel to Close Hudson Facility, Nvidia at Year Highs, Broadcom’s New Chips
Intel Corp. (NASDAQ:INTC): Intel will be closing a Hudson, Massachusetts, plant that employs 700 workers by the end of 2014, though spokesman Chuck Malloy told the Boston Globe that the plant will be run near capacity until it’s closed to fill existing orders in order to build inventories of chips that Intel will no longer make following the closing. The Globe points out that the plant uses equipment that’s “more than a decade old” and doesn’t make any of Intel’s Core, Xeon, or Atom CPUs.
Nvidia (NASDAQ:NVDA): Nvidia’s stock was flirting with new 52-week highs Thursday and actually reached its year peak at $15.90 per share before settling to close at $15.70. This leads to a modest 1-year return of 14.8 percent and year-to-date return of 23.4 percent, Zacks.com points out. “NVIDIA has been witnessing demand across its gaming graphics processing units (or GPU) driven by robust performance in desktop, workstation and server market segments,” Zacks.com says. “Moreover, the company’s new gaming and entertainment device ‘SHIELD’ has received positive response.”
Broadcom Corp. (NASDAQ:BRCM): Broadcom launched four new chips Thursday geared specifically for UltraHD — or 4K — televisions. “UltraHD TVs can put four times as much data on a screen compared to today’s 1080p high-definition TVs,” VentureBeat says. Hence, the need for a highly capable, high-efficiency video codec (HEVC) chips, a segment that Broadcom is working to get a first-mover advantage in.