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China, Suqian: Semiconductor Manufacturing
An employee works at a semiconductor manufacturer in Suqian city in east China's Jiangsu province (FANG DONGXU/Getty Images)

Confused by conflicting semiconductor earnings reports? Zoom out for some good news

There’s been good news and bad news from major chip players this week, but profit expectations for the industry recently rose to a fresh record.

Luke Kawa

Chip stocks have been whipsawed in recent days, with the VanEck Semiconductor ETF tumbling 5.4% on Tuesday after semi supplier ASML cut its 2025 guidance, and up about 2.5% in early trading on Thursday after chipmaker TSMC boosted its sales outlook for next year.

How do investors make sense of these conflicting narratives? Well, one way would be at looking at expectations for the semiconductor industry as a whole rather than just two examples.

The Philadelphia Semiconductor Index shows that 12-month estimates for the cohort’s forward earnings per share hit a fresh high ahead of the start of earnings season.

The message from Wall Street’s bottom-up bean counters is that Big Tech’s torrent of spending on AI will continue to be a potent catalyst for the semi space.

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Max Knoblauch

Archer Aviation sinks after reporting better-than-expected Q3 loss, announces it will acquire LA’s Hawthorne Airport

Air taxi maker Archer Aviation reported its Q3 results on Thursday, and its shares climbed more than 6% before turning negative.

The company posted a loss per share of $0.20, better than the $0.30 loss analysts polled by FactSet expected.

Archer announced it would acquire Los Angeles’ Hawthorne Airport for $126 million as a strategic hub for its planned LA air taxi network.

Cash is vital for Archer, which is without revenue as it seeks FAA certification. The company ended its third quarter with $1.64 billion in cash (and equivalents), down from last quarter’s $1.72 billion but more than 3x the amount from the same period a year ago.

Archer’s rival Joby Aviation, which reported its third-quarter results on Wednesday, has a cash pile of $978.1 million.

Archer reported adjusted operating expenses of $121.2 million. Looking ahead, Archer said it expects adjusted earnings before interest and taxes to be a loss of between $110 million and $140 million for the fourth quarter. Wall Street expected a $120 million loss.

Earlier this week, Archer shares fell amid the IPO of its electric aircraft rival Beta Technologies. Archer shares are down about 9% this year as of Thursday’s close, far underperforming Joby’s growth of 76%.

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