US home sales surged last month

The number of existing home sales in the United States increased by 9.5% MoM to 4.38 million units in February, hitting a new high in one year, compared to the expectation of 3.95 million units and the previous value of 4 million units. Compared to January 2024, three of the four regions showed increases in sales. While the Northeast region was flat, the West had the biggest gain of 16.4% followed by the South with an increase of 9.8%. The Midwest region had the smallest growth in sales of 8.4%.

The national median existing-home price for all housing types reached $384,500 in February, up 5.7% YoY. Regionally, in February, all four regions showed price YoY growth. The Northeast had the largest gain of 11.5% followed by the West with an increase of 9.1%. The Midwest had an increase of 6.8% while the South region rose 4.1%. February’s inventory of unsold listings as of the end of the month was up 5.9% from last month, standing at 1,070,000 homes for sale. Compared with February of 2023, inventory levels were up 10.3%. It takes approximately 38 days for a home to go from listing to a contract in the current housing market. A year ago, it took 34 days. In terms of US stocks market, the S&P 500 index rose moderately this week and is expected to maintain the momentum in the short term and fluctuate between 5,100-5,400 points.

In terms of industry, as the fundamentals of the semiconductor industry have improved, the related companies are expected to benefit. Investors can focus on companies with good performance and growth potential.

Micron Technology (MU.US)’s FY24Q2 revenue, gross margin and net profit were well above the high end of guidance. Total revenue reached US$5.8 billion, up 58% YoY, mainly due to strong AI demand and tight supply. The gross margin was 20%, up 19 ppts QoQ and 51.4 ppts YoY driven by higher pricing. Net profit amounted to US$793mn, compared to a net loss of US$2.3 billion in 2Q23.

In terms of business segment, Compute and Networking Business revenue stood at about US$2.2 billion, up 26% QoQ and 57% YoY, with Data center revenue growing robustly and cloud more than doubled sequentially. Revenue for the Mobile Business Unit amounted to US$1.6 billion, up 24% QoQ and 69% YoY, as an expected decline in volume was more than offset by improved pricing. Embedded Business Unit revenue was US$1.1 billion, up 7% sequentially and 27% YoY, due to a solid demand for leading-edge products in the industrial market. It is recommended to buy at US$121.0, target at US$140.0, and stop loss at US$116.0.

Intel(INTC.US)’s revenue in FY23Q4 reached US$15.4 billion, up 9% QoQ and 10% YoY. Gross margin came in at 48.8%, up 5 ppts YoY driven by favorable product mix and higher ASP. Net profit amounted to US$2.7 billion, compared to a net loss of nearly US$700 million in 4Q22.

In terms of business segment, CCG delivered revenue of US$8.8 billion, up 12% QoQ and 33% YoY. The Mgt saw sustained strength in gaming and commercial segments and believed customer inventory levels had normalized. DCAI revenue amounted to US$4 billion, up 4% QoQ, mainly driven by rising average core density contributing to record Xeon ASPs. NEX revenue was US$1.5 billion, up 1% QoQ. With market demand for PC remaining strong, the Mgt expects TAM to grow in the low single digits in 2024, and remains confident in the longer-term TAM forecast as the age of the AI PC further encourages device replacements. It is recommended to buy at US$43.20, target at US$50.30, and stop loss at US$41.40.