Apple (AAPL) iPhone chip suppliers Broadcom (AVGO) and Texas Instruments (TXN), along with equipment giants Applied Materials (AMAT) and Lam Research (LRCX) — all five of these chip stocks are near buy zones, with Texas Instruments and Lam Research reporting this coming week.
X Investors also are digesting strong earnings this week from chipmaker Skyworks Solutions (SWKS), another Apple iPhone supplier, and Dutch chip-equipment maker ASML.
Skyworks fell slightly Friday following its strong earnings report late Thursday. Skyworks' results and outlook offer some insight into demand for Apple and the overall Apple ecosystem. ASML, which reported on Wednesday, surged nearly 10% for the week, becoming extended from its July 14 breakout.
As for Apple itself, the iPhone maker's stock dipped 7 cents to 150.27 on Friday, after an intraday test at its 50-day moving average. Apple ended a nine-day winning streak on Thursday as it moves toward a 156.75 flat-base buy point.
Broadcom
Broadcom, which was down 0.1% to 253.11 in Friday stock market trading, is just below a 256.88 buy point of a base-on-base formation.
Broadcom weathered the recent tech sell-off better than most leading chip stocks, spending only a few days below its 50-day line. However, the base is the chipmaker's fourth in the past year. As bases enter into later stages, breakouts are more likely to fail.
Morgan Stanley analyst Craig Hettenbach said in a research note this month that Broadcom "is picking up new (iPhone) content in custom applications, including touch and wireless charging."
However, Broadcom's planned purchase of Brocade Communications Systems (BRCD) has been put off to allow more time for government review.
Texas Instruments
Texas Instruments, another Apple chipmaker, fell 1.2% to 81.70 on Friday, moving further away from a 84.75 buy point of a late-stage flat base.
Texas Instruments reports second-quarter earnings on Tuesday. Earnings per share are expected to jump 25% to 95 cents, with revenue up 9% to $3.554 billion, according to Zacks Investment Research.
TI's margins have grown as more chips find their way into automobile technology, and as demand remains solid in the industrial space, Zacks said in a research note. While the company also stands to benefit from the expansion of more connected devices in general, it faces heightened competition from other chipmakers.
Applied Materials, Lam Research, Kulicke & Soffa
Applied Materials, which provides equipment used to make chips, was close to a 47.96 buy point of a flat base. Shares dipped 0.9% to 46.81 on Friday.
Lam Research is working on the right side of a short cup base with 167.15 buy point. Shares were off 0.8% to 163.53 Friday amid solid weekly gains. Lam Research reports earnings on Wednesday.
Kulicke & Soffa is currently consolidating with a 23.10 buy point. Shares dipped 1.9% to 22.11 on Friday.
RELATED:
Two Top Chip Stocks Get Price-Target Hikes
Device Analysis Reveals Chip Winners; Ambarella Tumbles On Outlook
For Earnings Trades, These 4 Names Look The Most Actionable
Fear Gauge Hits Record Low; What Stocks Did Next Should Scare You
