Chip stocks take a hit after Broadcom earnings
MARKETWATCH 4:39 PM ET 6/13/2019
Symbol Last Price Change |
| AVGO | 281.61 | +1.88 (+0.67%) | | TXN | 111.18 | +0.84 (+0.76%) | | XLNX | 108.35 | +0.41 (+0.38%) | | SWKS | 73.35 | +0.69 (+0.95%) | | QCOM | 69.93 | +0.34 (+0.49%) | | QRVO | 63.31 | +0.53 (+0.84%) | | NVDA | 148.26 | +2.06 (+1.41%) | | INTC | 46.7 | +0.38 (+0.82%) | | AMD | 31.39 | -0.79 (-2.45%) | | MU | 33.38 | +0.42 (+1.27%) | | QUOTES AS OF 04:15:00 PM ET 06/13/2019 |
Several semiconductor companies saw shares decline in after-hours trading Thursday following Broadcom Inc.'s (AVGO) earnings report, which suggested a second-half rebound for chips looks less likely. Among stocks falling more than 1% immediately after Broadcom reported were Texas Instruments Inc. (TXN), Xilinx Inc. (XLNX), Skyworks Solutions Inc.(SWKS), Qualcomm Inc. (QCOM), Qorvo Inc. (QRVO) and Nvidia Corp. (NVDA) Larger chip makers like Intel Corp. (INTC) , Advanced Micro Devices Inc. (AMD) and Micron Technology Inc. (MU) fell by smaller amounts, closer to 0.5%, though action was jagged amid high volume for the extended session. Broadcom cut its fiscal-year forecast in its second-quarter report after trading closed Thursday ( marketwatch.com challenging-market-2019-06-13), and Chief Executive Hock Tan said in a statement that he sees "a broad-based slowdown in the demand environment." "As a result, our customers are actively reducing their inventory levels, and we are taking a conservative stance for the rest of the year," Tan said. Chip companies earlier this year said that a slowdown would reverse by the second half of the year ( marketwatch.com comes-with-little-evidence-to-back-it-up-2019-03-07), but returns since then have created doubts about the timeline ( marketwatch.com ). Broadcom shares were down about 7% in after-hours trading.
-Jeremy C. Owens For more from MarketWatch: marketwatch.com
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