Is Major Semiconductor Short Interest Suggesting an End to the Tech Rally?

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The short interest data have come out for the September 30 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 largely pushed many of these companies to new highs, as the Dow and S&P have both hit new all-time highs. But currently markets are retreating, begging the question whether this tech rally is over. The short interest might suggest that it is.

The September 30 short interest data have been compared with the previous report. Short interest increased in these selected semiconductor stocks.

Intel Corp. (NASDAQ: INTC) saw its short interest increase ever so slightly to 75.55 million shares. The previous level was 75.47 million. Shares closed Tuesday at $37.27, in a 52-week trading range of $27.68 to $38.36.

Advanced Micro Devices Inc. (NASDAQ: AMD) had a short interest increase to 93.37 million shares from the previous level of 80.60 million. Shares of AMD closed Tuesday at $6.49, in a 52-week range of $1.75 to $8.00.

Qualcomm Inc. (NASDAQ: QCOM) saw the number of its shares interest grow to 23.08 million, compared to the previous period, in which 21.43 million shares were reported short. Qualcomm shares closed most recently at $66.09, in a 52-week range of $42.24 to $70.40.

Applied Materials Inc. (NASDAQ: AMAT) short interest shrank to 14.18 million shares. The previous reading was 14.62 million. Shares closed Tuesday at $28.64, in a 52-week range of $15.07 to $31.07.

Micron Technology Inc. (NASDAQ: MU) saw its short interest decrease to 70.45 million shares from the previous reading of 77.14 million. Shares closed Tuesday at $16.86, in a 52-week range of $9.31 to $19.30. Note that like AMD and Intel, Micron is one of the most shorted Nasdaq stocks.

Broadcom Ltd. (NASDAQ: AVGO), the result of the Avago-Broadcom merger, saw its short interest jump to 4.59 million shares from the previous of 3.78 million. Shares closed most recently at $171.17, in a 52-week range of $112.38 to $179.42.