Taiwan Semiconductor Manufacturing Co (NYSE: TSM) said the automotive industry needs to modernize its “Just-in-time” supply chain practices to avoid a similar semiconductor shortage as the ongoing one in the future, Reuters
Chip equipment maker Applied Materials Inc (NASDAQ: AMAT) on Thursday provided a bullish outlook for the third quarter as clients facing chip shortages rush to add capacity amid higher demand and warned that the just-in-time strategy to fill scarcity may not be effective going forward.
On CNBC's "Options Action," Mike Khouw spoke about unusually high options activity in Applied Materials, Inc. (NASDAQ: AMAT) ahead of the earnings report, which is scheduled for Thursday after the market close.
The iShares PHLX Semiconductor ETF (NASDAQ: SOXX) traded lower by 2.6% on Tuesday morning (although it recovered to end the day slightly positive) and is now down 11% in the past month as a global semiconductor shortage drags on.
This unusual options alert can help traders discover the next big trading opportunities. Traders will search for circumstances when the market estimation of an option diverges heavily from its normal worth. Unusual trading activity could push option prices to exaggerated or underestimated levels.