Short Sellers Grow More Selective on Major Semiconductors The short interest data have come out for the August 31 settlement date. It is important to note that semiconductor trends are considered to be leading indicators of technology and broader electronics demand. A strong rally in the tech sector has largely pushed many of these companies to new highs, as the Dow and S&P have both hit new all-time highs, but recent market volatility in September has called the market rally into question. The August 31 short interest data have been compared with the previous report. Short interest was mixed in these selected semiconductor stocks. Intel Corp. (NASDAQ: INTC) saw its short interest increase to 66.39 million shares. The previous level was 63.59 million. Shares closed Monday at $36.08, in a 52-week trading range of $27.68 to $36.65. Advanced Micro Devices Inc. (NASDAQ: AMD) had a short interest decrease to 70.78 million shares. The previous level was 72.21 million. Shares of AMD closed Monday at $5.94, in a 52-week range of $1.65 to $8.00. Qualcomm Inc. (NASDAQ: QCOM) saw its short interest shrink slightly to 20.92 million, compared to the previous period, in which 21.64 million shares were reported short. Qualcomm shares closed Monday at $62.25, in a 52-week range of $42.24 to $63.70. Applied Materials Inc. (NASDAQ: AMAT) short interest rose to 12.86 million shares. The previous reading was 11.24 million. Shares closed Monday at $29.59, in a 52-week range of $14.29 to $30.41. Micron Technology Inc. (NASDAQ: MU) saw its short interest increase to 74.12 million shares from the previous reading of 72.39 million. Shares of Micron closed Monday at $17.15, in a 52-week range of $9.31 to $19.30. Broadcom Ltd. (NASDAQ: AVGO), the result of the Avago-Broadcom merger, saw its short interest increase slightly to 3.64 million shares from the previous level of 3.39 million. Shares closed Monday at $164.48, in a 52-week range of $111.53 to $179.42.
The recent move off the 50 DMA does not offer the all clear sign to buy Semis. The high volume node set last Friday points to a new period of a consolidation and, at the very least, a re-test of the $63 - $64 support buffer. $60 SMH offers long term support.
