|Broadcom stock plunge triggers broad selloff in chips |
By Tomi Kilgore
Published: June 14, 2019 7:37 a.m. ET
Shares of semiconductor makers suffered in broad selloff in premarket trade Friday, after Broadcom Inc.'s AVGO, -9.80% mixed fiscal second-quarter results and lowered full-year outlook raised concerns that a second-half rebound in demand would not occur as expected. Broadcom's stock tumbled 10.2% ahead of the open, after the company reported results late Thursday. That put the stock on track to suffer its biggest one-day drop since it plummeted 13.7% on July 12, 2018. All 22 of the PHLX Semiconductor Index's SOX, +0.58% components that have traded in the premarket are losing ground, with 18 of those trading shedding more than 2%. Among the more active shares in the early going, Advanced Micro Devices Inc. AMD, -2.87% dropped 3.3%, Intel Corp. INTC, -1.93% shed 1.8%, Micron Technology Inc. MU, -3.36% fell 3.5%, Nvidia Corp. NVDA, -2.80% lost 2.8% and Qualcomm Inc. QCOM, -2.49% gave up 2.5%. The chip-sector selloff comes as futures ESM19, -0.27% the S&P 500 SPX, +0.41% shed 0.3%.