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wolfspeed (New York Stock Exchange: Wolf) and STMicroelectronics (New York Stock Exchange: STMAmong the biggest decliners were semiconductor stocks on Thursday as the industry awaited results from giant Intel.Nasdaq: INTC).
Wolfspeed (WOLF) in Durham, North Carolina fell more than 18% After it issued weaker-than-expected guidance, citing issues At the Mohawk Valley facility.
Canaccord Genuity analyst George Giannarikas said the delay at the company’s “critical” Mohawk Valley facility stems from its inability to increase its outrigger capacity by 200mm. The company also lowered its revenue guidance for fiscal 2024 as a result.
As such, Giannarikas hypothesized whether silicon carbide might be “too hard or too bulky” given the constant stumbles and questioned whether Tesla was right to question the ability of silicon carbide to meet the electrification demands of the economy.
Giannarikas wrote in an investor note, while lowering the company’s price target to $72 from $103.
STMicroelectronics (STM), which competes with Wolfspeed (WOLF) in the silicon carbide space, posted first-quarter results that beat estimates, but its shares decreased 8.5% Even when she raised her gaze.
STMicro (STM) led by Jean-Marc Cherry earned $1.10 per share as revenue rose 20% year over year to $4.25 billion. Analysts had expected earnings of 99 cents per share and $4.19 billion in revenue.
The company also provided guidance for the second quarter and the full year, saying it expects full-year sales to be between $17 billion and $17.8 billion.
Intel (INTC) stock up about 1% As investors await its latest quarterly results, which some believe may show signs of a decline in the PC space.
Mobileye (Nasdaq: MBLY), which spun off from Intel Corporation (INTC) late last year, dropped more than 23% After the advanced driver assistance company cut its full-year outlook, citing the weak Chinese electric vehicle market.
Mobileye (MBLY) now expects revenue for 2023 to be between $2.06 billion and $2.11 billion, down from the $2.25 billion that analysts expected. The company had previously directed 2023 revenue to be between $2.19 billion and $2.28 billion.
AMD (AMD), which competes with Intel (INTC), has risen fractionally as a company He said I’ve fixed issues with Ryzen 7000 series CPUS.
Semiconductor equipment company KLA Corp. (KLAC) earned more than 5.5% Wall Street analysts speculated that demand for the company’s equipment could be “stable”.
KLA’s competitors, Applied Materials (AMAT), Lam Research (LRCX) and ASML (ASML) rose in sympathy.
Most other semiconductor stocks fell Thursday, including Texas Instruments (TXN), Qualcomm (QCOM), Broadcom (AVGO), and Analog Devices (ADI). NXP Semiconductors (NXPI), ON Semiconductor (ON), and Microchip Technology (MCHP) also lost ground.