Sefa Ozil
Intel CorporationNASDAQ:INTC) chip stocks fell Friday after the company’s second-quarter results and guidance rattled investors and analysts alike.
arm (army) -8%Micron (MU) technology -7%semiconductors (ON) -5%Taiwan Semiconductor Manufacturing Company (TSM) -5%Analog devices (Adi) -4%NXP Semiconductor Corporation (NXPI) -4%Broadcom (I am bored) -3%Texas Instruments, Inc.TXN) -3%Nvidia (NVDA program) -1%and Qualcomm (Qcom) -1%.
Advanced Micro Devices (AMD) +2%, an Intel rival, was among the few companies to post gains on Friday.
Intel Corp. lost about 25% of its market value on Friday after announcing its results and guidance, disappointing investors. The chipmaker also said it would lay off about 15% of its staff and suspend its dividend.
Analysts at Raymond James had expected the third-quarter outlook to be weak, but were surprised by the magnitude of it, especially on margins.
ARM (ARM) continued the sell-off that began on Thursday and continued into Friday after its quarterly results and guidance were released two days ago.
Meanwhile, Nvidia shares were hit after reports that the U.S. Department of Justice has launched an investigation into the company following complaints from rivals that the chipmaker abused its market dominance in selling chips that power AI products. Nvidia is also facing scrutiny from the Justice Department over potential antitrust issues related to its planned acquisition of Israel-based startup Run:ai.
Separately, hedge fund Elliott Management said Nvidia is in a bubble with the AI theme driving its share price.
Comments are closed, but trackbacks and pingbacks are open.