Investors could not ask for more as the Santa Clause rally added more gains to 2023’s trading. Yesterday, Intel’s (INTC) returned to the $50 level, defying bears this year. Now trading at a 50 times forward price-to-earnings ratio, Intel will reportedly get a $3.2 billion grant from the Israeli government. In return, it will set up a $25 billion chip facility in southern Israel.
Last week, Micron (MU) fueled the chip rally when it issued strong guidance in its quarterly report.
Among the Magnificent 7, Apple (AAPL) is steady after the Biden Administration declined to veto the Watch ban. The International Trade Commission ruled in favor of Masimo (MASI) and its blood oxygen technology patents. Expect AAPL stock to resume its advancement in the coming weeks. The firm needs to resolve the ban to resume sales of its massively popular Series 9 and Ultra 2 smartwatches.
In the drug manufacturing sector, Brystol-Myers announced another blockbuster acquisition. Yesterday, it said it would buy Rayzebio for $4.1 billion, or $62.50 per share in cash. Bristol Myers will finance the acquisition by issuing debt. This adds RayzeBio’s RYZ101 lead program for treating small-cell lung cancer to the pipeline.
Investors seeking discounts may watch for BMY stock, along with its peers Pfizer (PFE), Sanofi (SNY), and Zoetis (ZTS) to rebound in the coming weeks.
