Tokens Drop as Volatile Currency Markets Add to Fears; Intel’s Mobileye extends deal with Geely
Semiconductor stocks reversed their initial gains on Monday as traders continued to sell technology stocks on growing concerns about the global economy and the implications of rising interest rates.
Intel (NASDAQ: INTC) tear down 1% midday even as the company’s Mobileye unit, which it was preparing for an IPO, expanded its partnership with Chinese multinational automaker Geely (OTCPK:GELYY).
In a statement, Mobileye and Geely said the expanded deal would include three Geely brands set to launch electric vehicles starting next year. ZEEKR would also introduce Mobileye SuperVision on two new EV models and begin developing additional lidar-based features with Mobileye.
Additionally, Intel (INTC) has reportedly chosen the town of Vigasio in Italy’s Veneto region, about 70 miles west of Venice, for its new multi-billion dollar chip factory in the European country.
Several other chip stocks, including Advanced Micro Devices (NASDAQ: AMD), Nvidia (NVDA), Micron Technology (MU) and NXP Semiconductors (NXPI) also fell more than 1% by midday.
A number of media gave positive reviews to the new Ryzen 7600X and 7950X chips from AMD (AMD) on Monday.
Late last month, AMD (AMD) unveiled its new Ryzen 7000 series of processors, including what it described as the “fastest core” in gaming.
Global financial markets continued to be nervous, with volatility in currency markets raising concerns. On Monday, the pound fell almost 5% to nearly parity with the US dollar, before recently reversing some of those losses, down 1.5%.
Last week, Japan’s central bank intervened in currency markets and supported the yen after it fell to a 24-year low against the US dollar.
Bank of America last week lowered estimates for AMD (AMD) and Intel (INTC), indicating “further deterioration” in the consumer PC market and shedding excess inventory.