Chip and Quantum Stocks Recover – Slightly Falling Oil Prices Support Sentiment

Correction Rather Than Loss of Confidence

According to analysts, the interim setbacks in quantum stocks should be read less as a loss of confidence in the technology itself, and more as a correction following overheated trading phases. The three companies mentioned had already been trading in spring at valuations that amounted to a multiple of annual revenue and were thus well above the sector average.

The broader chip sector also showed a firmer tone on Tuesday. The recovery, which had already begun in Asia and Europe, thus spread to the US markets. Analysts cited slightly lower oil prices and signals pointing to a possible ceasefire in the Iran conflict as supporting factors. Both reduced concerns about an escalation of the geopolitical situation and the associated economic risks.

Oil Prices and Iran Conflict as Sentiment Support

In a sector comparison, several semiconductor companies have recently seen noticeably upwardly revised earnings expectations. According to analysts, Intel is among the names with the most significant revisions in the chip sector. The company is scheduled to report its quarterly results on July 23.

The US chip industry is thus heading into an ongoing reporting season that, according to observers, is likely to be decisive for the further sentiment in the sector. In recent weeks, quantum computing stocks had largely moved in step with the broader AI and semiconductor segment.

The article is by Benedict Kurschat from the editorial team of finanzen.net. The original text's disclaimer states: „Dieser Text dient ausschließlich zu Informationszwecken und stellt keine Anlageempfehlung dar." The note underscores that the depiction of market movements is journalistic-descriptive in nature and is not to be understood as a recommendation to buy or sell individual stocks.

Outlook for the Reporting Season

Market participants are now watching to see whether the recovery in the chip and quantum space holds up over the course of the day. Should oil prices continue to decline and the talks on resolving the Iran conflict take more concrete shape, investors' risk appetite could firm up further. Conversely, if new tensions arise, setbacks would be expected.

Looking ahead to the ongoing reporting season, expectations are directed among others at Intel and other major semiconductor manufacturers. The figures released there are regarded as a litmus test for whether the recently upwardly revised earnings expectations can actually be met and whether the sector will continue on its recovery course.